IREN Jumps 7% on $3.4 Billion NVIDIA AI Cloud Deal, $2.1 Billion Share Investment Option

"The reaction follows an 8-K filed May 7 at 9:05 p.m. ET detailing a $3.4 billion AI Cloud contract alongside a five-year option for NVIDIA to take an equity stake worth up to $2.1 billion. The disclosure has reframed IREN as a marquee AI infrastructure name, not just a Bitcoin miner."

"The headline catalyst is a five-year, $3.4 billion AI Cloud contract for air-cooled Blackwell GPUs, anchoring a broader 5-gigawatt strategic infrastructure partnership. NVIDIA also received a five-year right to acquire up to 30 million IREN shares at $70 each, an option that could deliver roughly $2.1 billion in fresh capital if fully exercised."

"CEO Daniel Roberts framed the moment bluntly, stating: The world is structurally short compute... We also signed a 5-year, $3.4bn AI Cloud contract with NVIDIA and entered into a broader strategic partnership that further validates IREN's key role in the AI infrastructure ecosystem."

"The earnings report itself was mixed. IREN posted Q3 FY2026 revenue of $144.8 million against a $219.29 million consensus, with a net loss of $247.8 million that included a $140.4 million non-cash impairment tied to decommissioned mining hardware. AI Cloud revenue, however, nearly doubled sequentially to $33.6 million."

IREN shares rose sharply after a transformational NVIDIA partnership. The company reported a $3.4 billion AI Cloud contract and a five-year option for NVIDIA to acquire equity worth up to $2.1 billion at a $70 strike price. The deal positions IREN as AI infrastructure rather than only a Bitcoin miner. The stock gained 38% over the past week, 71% over the past month, and 813% over the past year, with a market cap near $20.84 billion. Financial results were mixed, with Q3 FY2026 revenue below consensus and a large net loss driven by a non-cash impairment, while AI Cloud revenue nearly doubled sequentially to $33.6 million.

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