IREN Limited reported fiscal second-quarter 2026 results, highlighting a $3.6 billion GPU financing package tied to a long-term AI Cloud contract with Microsoft. The financing carries an interest rate below 6% and, together with a $1.9 billion customer prepayment, covers roughly 95% of GPU-related capital expenditures. The company said its planned 140,000-GPU expansion remains on schedule, targeting $3.4 billion in annual recurring revenue (ARR) by the end of calendar year 2026.
IREN continued to advance its transition from Bitcoin mining to AI Cloud infrastructure, with construction progressing across multiple development horizons. In British Columbia, the company expanded its AI Cloud footprint, with approximately $400 million in ARR already under contract at Prince George and additional negotiations supporting more than $500 million in total potential ARR. IREN also announced a new 1.6 GW data center campus in Oklahoma, increasing secured grid-connected power capacity to more than 4.5 GW, with grid studies complete and power ramp expected to begin in 2028.
Financially, Q2 FY26 reflected the ongoing portfolio transition. Revenue declined sequentially to $184.7 million, while adjusted EBITDA reached $75.3 million. Reported net loss and EBITDA were driven primarily by non-cash and one-time items, including unrealized losses tied to convertible note hedging structures, ASIC impairment charges related to the GPU transition, and elevated stock-based compensation, partially offset by an income tax benefit from deferred tax liability adjustments.
- $3.6 billion GPU financing secured for Microsoft contract, interest rate <6%
- $1.9 billion customer prepayment plus financing covers ~95% of GPU capex
- 140k GPU expansion on track, targeting $3.4 billion ARR by end of CY26
- British Columbia AI Cloud expansion with ~$0.4 billion ARR under contract
- New 1.6 GW Oklahoma campus increases secured power to >4.5 GW
- Cash and equivalents of $2.8 billion as of January 31, 2026
- More than $9.2 billion in funding secured year-to-date across multiple instruments
“Last quarter marked meaningful progress across capacity expansion, customer engagement, and capital formation, reflecting IREN’s progress as a scaled AI Cloud platform,” said Daniel Roberts, co-founder and co-CEO of IREN. “With more than 4.5 GW of secured power, we are able to advance a broad set of opportunities in our pipeline and support the next phase of growth.”
🌐 Analysis
IREN’s latest financing underscores how hyperscaler-backed AI Cloud contracts are reshaping capital structures for large-scale GPU deployments, with customer prepayments and asset-backed financing reducing balance-sheet risk. The Oklahoma campus adds to a growing wave of multi-hundred-megawatt AI data center developments across North America, as operators position for post-2027 power availability and sustained demand from cloud and foundation-model providers.
