IREN shares surge over 15% as the company raises AI cloud business target to 4 billion dollars

BlockBeats News, July 20 – According to data from an exchange, Bitcoin mining company IREN's stock price rose by about 15.7% on Monday after the company announced it had raised the revenue target for its AI cloud business, now expecting its annualized AI cloud revenue run rate to exceed 4 billion US dollars by the end of the year.

IREN stated that it has recently signed multi-year cloud service contracts with AI developers totaling 2.8 billion US dollars, and about 85% of the new AI cloud revenue target is already contractually secured. Clients include Microsoft, NVIDIA, Perplexity, Figure AI, and others.

Boosted by the IREN news, CoinShares Bitcoin Mining ETF (WGMI) rose by about 9.6% on Monday, with other mining company stocks also rising concurrently. IREN is currently the fourth-largest holding in this ETF, accounting for about 10.05% of the portfolio.

IREN Co-CEO Daniel Roberts said the company plans to deliver 480MW of AI cloud computing capacity by 2026, a significant increase from about 3MW in 2025, and aims to reach 1.2GW capacity by 2027.

The company stated that demand from hyperscale cloud service providers, enterprise clients, and AI developers continues to exceed existing and planned computing capacity. Recent customer agreements also include advance payment arrangements, which could cover about 45% of GPU capital expenditures and reduce the financial pressure of AI infrastructure expansion.

Previously, Bernstein predicted in April that as IREN shifts its Bitcoin mining infrastructure towards AI computing, the company's AI cloud business would become its main source of revenue. This trend also reflects that more Bitcoin mining companies are transitioning towards AI data centers and high-performance computing (HPC) sectors.