Broker Canaccord Genuity has highlighted IREN’s (IREN) new graphics processing unit (GPU) cloud contract with Microsoft (MSFT) as a significant turning point for the bitcoin miner. This deal firmly positions IREN within the AI infrastructure space, marking a strategic shift for the company.
The broker reiterated its buy rating on IREN shares and raised its price target from $42 to $70. This increase is based on the five-year, $9.7 billion contract with Microsoft, along with the upside potential from IREN’s Texas data center expansion. Despite this optimism, the shares closed 6.8% lower on Friday at $62.38.
The contract includes a 20% prepayment from Microsoft and is projected to yield a 32% levered internal rate of return (IRR). Analysts, led by Joseph Vafi, believe this deal could shift investor focus from bitcoin mining to AI infrastructure. Under the agreement, IREN will supply Microsoft with Nvidia’s GB300 GPUs from its Horizon data centers in Texas. This project is expected to fund about half of the $3 billion Horizon buildout.
While risks related to chips and power supply remain, Microsoft’s upfront payment and credit backing help mitigate uncertainties, according to the analysts. Canaccord also pointed to IREN’s upcoming two-gigawatt Sweetwater 1 site, scheduled to come online in 2026, as the next major catalyst. The growing scarcity of power is driving strong demand from hyperscalers, making this development particularly significant.
Additionally, Canaccord raised its valuation of the Sweetwater project to $32 per share. IREN’s latest quarterly results showed revenue of $240.3 million, representing a 355% increase year-over-year. The broker highlighted IREN’s scale, access to low-cost power, and seamless integration as key advantages that enable the company to bridge the worlds of cryptocurrency mining and AI infrastructure.
https://www.coindesk.com/markets/2025/11/10/microsoft-deal-supercharges-iren-s-ai-ambitions-canaccord-says
