IREN
NVDA
Earnings? Meh. The Nvidia deal? Very much not meh.
IREN managed to do the rare corporate trick of posting an ugly revenue miss and still getting the market to clap like it was a standing ovation. Why? Because the company announced a $3.4 billion Nvidia AI cloud agreement, which is the kind of headline that makes investors temporarily forget about the spreadsheet tantrum underneath.
The old business is shrinking on purpose
Bitcoin mining revenue slipped as IREN decommissioned ASICs, which is a fancy way of saying it’s yanking out old hardware and making room for the GPU era. That’s the big pivot here: less “mine the coin,” more “rent the picks and shovels for the AI gold rush.”
Meanwhile, AI Cloud revenue surged 94% sequentially to $33.6 million. That’s not pocket change — it’s the kind of growth number that tells you the new engine is starting to spin up for real.
The ARR story is the real teaser
IREN says it now has $3.1 billion in contracted annual recurring revenue, with a target of $3.7 billion exiting 2026 if the GPU rollout keeps humming. That’s a big “if,” obviously. But it also gives the stock something investors love almost as much as actual profits: a giant future revenue runway.
Big picture: the earnings miss says one thing, but the Nvidia deal says IREN wants to be judged less like a crypto miner and more like an AI infrastructure player. And the market, at least for now, seems willing to play along.