IREN's $9.7B Agreement with Microsoft Draws Doubts as Insiders Sell Shares, Experts Caution

IREN Limited (NASDAQ: IREN) has landed a significant multi-year GPU cloud services agreement valued at $9.7 billion with

, marking a major step forward in the company's AI infrastructure strategy. Announced on October 31, 2025, the deal gives Microsoft access to GB300 GPUs for a five-year period, with 20% of the payment made in advance. has also signed a $5.8 billion procurement agreement with for the GPUs and related hardware, with installations scheduled to start in 2026 at its 750MW facility in Childress, Texas, according to . The GPUs will be deployed in new liquid-cooled data centers designed to support 200MW of essential IT capacity, as outlined by .

Funding for the project will come from a combination of existing cash reserves, customer prepayments, operational income, and additional financing, as noted by

. Daniel Roberts, who co-founded and co-leads IREN, said the partnership affirms IREN’s integrated AI cloud platform and "opens up a new customer base among global hyperscalers," according to . Jonathan Tinter of Microsoft praised IREN’s proficiency in delivering comprehensive AI infrastructure, describing the alliance as a "strategic" decision for both firms, based on .

Following the news, IREN’s stock price jumped nearly 22% in pre-market trading, reaching $74.15, according to Nasdaq. This comes after a turbulent year for the company, which shifted its focus from

mining to AI cloud offerings, resulting in a 500% increase in its share price earlier in the year, as reported by Quiver . Nonetheless, recent analyst opinions have been divided. Both J.P. Morgan and HC Wainwright reaffirmed "Sell" ratings, pointing to concerns over valuation and execution risks, according to . HC Wainwright also cut its FY2026 earnings projection for IREN to $0.93 per share from $1.22, while maintaining a $45 price target, as stated in .

Despite the optimism surrounding the contract, insider share sales have drawn attention. Co-CEOs William and Daniel Roberts each sold one million shares in September, earning $33.1 million, according to The Globe and Mail. Institutional investors have taken different approaches: FMR LLC acquired 8.6 million shares in Q2 2025, while D. E. Shaw & Co. exited its position entirely, as reported by Quiver Quant. The stock’s recent trajectory has been compared to that of Core Scientific, whose investors are wary of a proposed $9 billion merger with CoreWeave, according to

.

IREN’s move into AI infrastructure has made it a significant contender in the rapidly growing cloud computing sector. The company’s 3GW secured power assets in North America and collaborations with industry leaders like Microsoft highlight its competitive edge, as noted by Investing.com. However, analysts warn that heavy reliance on prepayments and financing could put pressure on liquidity, especially if project rollouts are delayed, Quiver Quant cautions.

As competition in AI accelerates, IREN’s success in delivering on this $9.7 billion contract—and maintaining trust with both investors and partners—will be essential for its future growth.