Crypto stock surges after $9.7B Microsoft deal

Core Insights - IREN signed a multi-year GPU cloud services contract with Microsoft, valued at approximately $9.7 billion, marking a significant expansion into AI infrastructure [1][2] - Following the announcement, IREN's stock experienced a pre-market increase of 20.03% and closed 4.35% higher on the previous Friday [1] - The new hardware will be deployed at IREN's 750-megawatt facility in Childress, Texas, throughout 2026, featuring liquid-cooled data centers [3] Financial Agreements - The five-year deal with Microsoft includes a 20% prepayment, indicating strong initial financial backing for IREN's AI initiatives [2] - IREN also secured a $5.8 billion procurement deal with Dell Technologies for GPUs and supporting equipment [2] Strategic Expansion - IREN is transitioning from a Bitcoin mining company to a vertically integrated AI Cloud provider, leveraging its existing infrastructure and expertise [5][6] - The company aims to diversify its revenue streams and reduce reliance on Bitcoin price fluctuations by focusing on GPU-intensive AI workloads [6] Operational Plans - Capital expenditures for the new AI infrastructure will be funded through a combination of cash reserves, customer prepayments, operational cash flows, and additional financing [4] - IREN's co-founder emphasized the agreement's validation of the company's position as a trusted AI Cloud services provider [4]