Iris Energy (IREN), known for its bitcoin mining operations, announced a major expansion of its artificial intelligence (AI) capabilities. The company invested in new equipment from NVIDIA, highlighting a strategic pivot of mining companies towards the high-yield sectors of cloud computing and AI. This move reflects a global trend where cryptocurrency miners adapt to market changes by diversifying their business models.
IREN acquired 4,200 NVIDIA Blackwell B200 GPUs for approximately $193 million, including associated equipment. This deal doubles the company's high-performance computing units, bringing the total number to 8,500. The new equipment will be installed at the Prince George campus, British Columbia, which has a dedicated capacity of 50MW. The campus is designed with scalability in mind and can support up to 20,000 Blackwell GPUs in the future. The initial payment for the equipment was made using the company's own cash reserves, while IREN is negotiating additional financing to optimize costs.
In addition to the new deal, IREN secured $102 million in lease financing for the July purchase of 2,400 Blackwell GPUs, including 1,300 B200s and 1,100 B300s, with a total value of $130 million. This deal is structured as a 36-month lease with a single-digit interest rate, allowing liquidity to be freed up for further strategic initiatives. After the completion of the current purchase, IREN's total GPU fleet will include 800 H100 units, 1,100 H200 units, 5,400 B200 units, and 1,200 B300 units, making the company a prominent player in the high-performance computing segment.
The new acquisition continues IREN's business diversification path. While the company maintains its bitcoin mining capabilities at around 50 exahash per second, it increasingly reallocates its data center resources to clients in high-performance computing and cloud technology sectors. This shift reflects an adaptation to the volatility of the cryptocurrency market, where mining has become a less predictable source of income. Investments in AI infrastructure allow IREN to capitalize on the growing demand for computing power for machine learning and cloud services.
The new equipment purchase followed the resolution of financial obligations with NYDIG related to previous loans for mining equipment. This allowed the company to strengthen its financial position and focus on new investments and strategic development.
Analysts note that IREN's actions align with current market trends, where mining companies seek alternative revenue sources amidst cryptocurrency market instability. The demand for GPUs for AI and cloud computing is rapidly increasing, making such investments strategically justified. However, experts emphasize the need for careful energy management given the high power consumption of data centers, and the monitoring of market risks associated with demand fluctuations for AI services.