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IREN Secures $9.7B AI Deal Amid Industry Challenges

12/26/2025

Summary

IREN Secures AI Contract

IREN Limited (IREN) secured a $9.7 billion AI cloud contract with Microsoft.
IREN aims for $3.4 billion ARR by 2026.
Cipher Mining (CIFR) faces near-term challenges from higher expenses and compressed profitability, prompting downward revisions to 2026 earnings estimates.
Cipher Mining (CIFR) and IREN Limited (IREN) diversify into AI and HPC to reduce reliance on Bitcoin mining.
High capital expenditures for rapid expansion pose profitability risks for IREN.

Summary

Cipher Mining's Major Deals

Cipher Mining (CIFR) signed a 10-year AI hosting deal with Fluidstack and a 15-year lease with Amazon Web Services, totaling about $8.5 billion in future payments.
These contracts enhance Cipher Mining's credibility with major tech firms.
Cipher Mining gained 95% control of a 1-gigawatt HPC project in West Texas, set to energize in 2028.
The company issued a $1.3 billion convertible note to fund HPC developments, avoiding immediate equity dilution.

History

Historical Context

The global cloud computing market, valued at approximately $370 billion in 2021, has seen significant shifts with major players like Microsoft and Amazon leading the charge. IREN Limited's $9.7 billion contract with Microsoft highlights the industry's pivot towards AI and high-performance computing, while Cipher Mining's $8.5 billion agreements with Fluidstack and AWS reflect a growing reliance on cloud services, reshaping technology investments for the future.

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IREN Secures AI Contract

IREN Limited (IREN) secured a $9.7 billion AI cloud contract with Microsoft.
IREN aims for $3.4 billion ARR by 2026.
Cipher Mining (CIFR) faces near-term challenges from higher expenses and compressed profitability, prompting downward revisions to 2026 earnings estimates.
Cipher Mining (CIFR) and IREN Limited (IREN) diversify into AI and HPC to reduce reliance on Bitcoin mining.
High capital expenditures for rapid expansion pose profitability risks for IREN.

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