IREN: Former Bitcoin Miner Owns the Power AI Companies Need

Mining Bitcoin generates over $1 billion in annual cash that IREN uses to build more AI data centers without borrowing money or selling new shares. This self-funding model means the company can expand aggressively while competitors either take on debt or dilute existing shareholders to finance their own growth plans.

IREN has 2.9 gigawatts of power already plugged into the grid in Texas and British Columbia, letting customers turn on operations immediately. Competitors and tech giants face multi-year delays to get similar connections approved and built, making IREN's ready-to-use infrastructure a rare and valuable asset as AI companies scramble for computing power.

The company owns the land, power lines, and buildings—not renting from landlords or utilities. This ownership means it keeps 65-75 cents of every dollar customers pay for space and power, compared to competitors who lease infrastructure and lose a large chunk to middlemen, making IREN's business far more profitable per customer.

Microsoft Revenue Recognition Begins: Initial revenue from the $9.7 billion Microsoft contract hits financials in Q1 2026, with prepayments flowing and first GPU deployments going live, proving AI cloud isn't theoretical but actual contracted cash flow scaling toward $1.94 billion annual run-rate.

Sweetwater 2GW Energization Complete: The massive Sweetwater hub in Texas comes fully online by late 2026, adding 2 gigawatts of grid-connected capacity that unlocks $3.4 billion AI cloud revenue potential and shifts the narrative from "promising miner" to "infrastructure giant."

AI Power Crunch Forces Premium Pricing: As U.S. data center demand accelerates toward 123 gigawatts by 2035 and grid bottlenecks worsen, IREN's existing interconnections become strategic assets commanding higher lease rates, potentially doubling margins as scarcity pricing takes hold across the infrastructure layer.

The $9.7 billion Microsoft contract represents most of IREN's near-term AI revenue from just one customer. If Microsoft decides to build its own data centers, negotiates lower prices when renewing in 2030, or simply needs less computing power, IREN loses its anchor tenant and must scramble to fill gigawatts of empty capacity.

IREN mines Bitcoin at $41,000 cost per coin and relies on selling it above $100,000 to generate expansion cash. If Bitcoin crashes and stays below $50,000, mining stops being profitable and the company would need to borrow money or issue new shares to keep building data centers, slowing growth and hurting existing investors.

The 2-gigawatt Sweetwater facility in Texas must open on time in 2026 to hit revenue targets and justify the stock price. Infrastructure projects often face delays from permitting issues, equipment shortages, or grid complications, any pushback means revenue arrives 12-24 months late while competitors catch up on their own buildouts.