New Nvidia Deal Boosts IREN Limited’s Crypto Stock Amid Strategic Shift
May 7, 2026 – By Pooja Rajkumari, TheStreet Crypto
Shares of IREN Limited (NASDAQ: IREN) surged dramatically in after-hours trading on May 7, jumping 27% to $72.28, following a fresh strategic partnership announcement with Nvidia (NASDAQ: NVDA). After previously closing down 6.77% at $56.85, the stock later slightly pulled back but remained up 21.55% at $69.45 at press time.
Nvidia Partnership Signals Major Shift Toward AI Infrastructure
The catalyst for the stock rally was IREN’s new multi-gigawatt deal with AI and graphics processing powerhouse Nvidia to deploy up to 5 gigawatts of accelerated compute infrastructure. The agreement marks a pivotal pivot for IREN, a company that began as a Bitcoin mining operation, and underscores its evolving business model embracing the booming AI sector.
Under the terms of the deal, Nvidia has secured a five-year right to purchase up to 30 million shares of IREN at $70 each, representing a potential $2.1 billion investment, pending regulatory approval. This partnership centers on building “AI factories” powered by Nvidia’s GPUs designed to serve AI-native startups and enterprise customers. Initial deployments will prioritize IREN’s 2-gigawatt Sweetwater campus in Texas, further cementing the company’s growing footprint in AI infrastructure.
Nvidia CEO Jensen Huang highlighted the importance of AI factories as foundational to the global economy:
"Deploying these systems at scale requires deep integration across the full stack — compute, networking, software, power and operations. IREN brings the scale and infrastructure expertise to help accelerate the buildout of next-generation AI infrastructure globally."
IREN: From Bitcoin Mining Pioneer to AI Infrastructure Innovator
Founded in 2018 by brothers Daniel and Will Roberts in Sydney, Australia, IREN Limited began life as Iris Energy—a Bitcoin mining firm leveraging vertically integrated data centers running on low-cost renewable energy. The company went public on Nasdaq in 2021, relying predominantly on Bitcoin mining as its revenue engine.
However, post-Bitcoin halving events squeezed mining margins, prompting IREN to diversify its focus. The company rebranded as IREN in November 2024, signaling a strategic reset to emphasize AI and cloud computing. Since then, it has secured a GPU contract with Microsoft and acquired enterprise cloud firm Mirantis, prior to the latest Nvidia partnership.
Bitcoin mining still anchors IREN’s revenue today, but the company is clearly transitioning toward becoming a major player in AI infrastructure.
Mixed Earnings Reflect Transition Challenges
Alongside the Nvidia deal, IREN reported its fiscal third-quarter earnings for the period ending March 31, 2026, after market close on May 7. The results revealed challenges amid the transition:
- Total revenue: $144.8 million, missing analyst estimates by a wide margin (consensus $219.29 million; low analyst estimate $167.2 million).
- Year-over-year revenue decline: From $148.1 million in the same quarter last year, contrary to expectations of 48% growth.
- Bitcoin mining revenue: $111.2 million, down significantly from $167.4 million the prior quarter.
- AI cloud services revenue: $33.6 million, nearly doubling from $17.3 million last quarter but still insufficient to offset mining revenue losses.
- Net loss: $247.8 million, deeper than the prior quarter’s $155.4 million loss.
- Non-cash impairments: $140.4 million related mainly to decommissioning mining equipment as IREN converts sites for GPU infrastructure.
- Unrealized losses: Additional $23.7 million on financial instruments.
- Adjusted EBITDA: $59.5 million, down from $75.3 million previously.
These results illustrate the growing pains associated with repurposing Bitcoin mining assets toward AI infrastructure—a costly but potentially rewarding shift.
Looking Ahead: A New Chapter for Crypto Stocks
IREN’s Nvidia alliance epitomizes a notable trend among publicly traded Bitcoin miners increasingly adopting AI compute and cloud services to offset deteriorating crypto mining economics. While the company’s near-term revenues remain anchored to Bitcoin, its strategic partnerships and acquisitions point toward establishing a foothold in the AI infrastructure ecosystem.
Investors responded positively to the strategic partnership’s long-term growth potential, despite disappointing quarter-to-quarter revenue figures. The infusion of capital from Nvidia’s potential equity stake further boosts IREN’s runway to scale next-generation “AI factories” and capitalize on surging demand for AI compute power.
As AI increasingly becomes foundational infrastructure for many sectors, companies like IREN transforming their operational focus beyond cryptocurrency mining could emerge as key players in the evolving landscape of cloud and AI computing services.
About the author:
Pooja Rajkumari is a Senior Reporter at TheStreet Crypto. With a background in U.S. finance and AI-driven editorial technologies, she covers trends at the intersection of blockchain, investing, and emerging technologies. Reach her at [email protected].
For more from TheStreet Crypto:
- Analysts sound blunt warnings for Bitcoin miners amid market shifts
- Microsoft and Mirantis: IREN’s expanding ecosystem
- Nvidia’s strategic vision for AI factories and global deployment
Stay tuned for further updates on evolving crypto stocks and AI infrastructure developments.