Broker Canaccord Genuity said IREN’s (IREN) new graphics processing unit (GPU) cloud deal with Microsoft (MSFT) marks a turning point for bitcoin. minor, pushing it firmly into the AI infrastructure space.
The brokerage reiterated its buy rating on the shares and raised its price target from $42 to $70, citing the five-year, $9.7 billion deal and upside from IREN’s Texas data center expansion.
Shares closed down 6.8% on Friday, at $62.38.
The deal includes a 20% prepayment from Microsoft, a projected internal rate of return (IRR) of 32% and the potential to shift investors’ focus from mining to AI, analysts led by Joseph Vafi wrote.
IREN will supply Nvidia’s GB300 GPUs to Microsoft from its Horizon data centers in Texas, a project expected to fund about half of Horizon’s $3 billion buildout. Although chip and power risks remain, Microsoft’s upfront payment and credit help reduce uncertainty, analysts said.
Canaccord has called IREN’s upcoming two-gigawatt Sweetwater 1 site, scheduled to come online in 2026, the next key catalyst as the electricity shortage drives demand for hyperscalers.
The broker also increased its valuation of Sweetwater to $32 per share.
IREN’s most recent quarter reported revenue of $240.3 million, up 355% year-over-year, with Canaccord highlighting its scale, low-cost energy and integration as benefits linking crypto and AI.
Learn more: Wall Street’s Biggest IREN Bull Raises Price Target to $142 After $9.7 Billion Microsoft AI Deal
