IREN Stocks Soar on NVIDIA Deal, Cementing AI Infrastructure Pivot

IREN Limited's stock price skyrocketed by 21% in after-hours trading on Thursday, following the company's announcement of a strategic partnership with NVIDIA. The deal grants NVIDIA significant equity rights and commits IREN to delivering up to 5 GW of next-generation AI infrastructure.

Under the agreement, NVIDIA will receive a five-year warrant to purchase up to 30 million IREN shares at $70 per share, which could potentially be worth $2.1 billion. In return, IREN will deploy massive clusters of NVIDIA's latest GPUs across its renewable-powered campuses in Texas and Canada.

The partnership is seen as a significant milestone for IREN, which has been rapidly shifting its focus from Bitcoin mining to AI infrastructure. The company's third-quarter earnings showed revenue totaling $144.8 million, compared to $184.7 million in the previous quarter, with AI Cloud Services revenue increasing to $33.6 million.

IREN's Co-Founder and Co-CEO Daniel Roberts stated that this partnership accelerates their transition to a full-stack AI cloud leader and gives them direct access to NVIDIA's most advanced technology roadmap.