IREN $IREN Doubles GPU Fleet with $193M NVIDIA Blackwell Buy to Expand AI Cloud in 2025

In the rapidly evolving landscape of artificial intelligence infrastructure, IREN Limited has emerged as a formidable player by significantly expanding its GPU fleet to bolster its AI cloud services. The company’s recent acquisition of 4,200 NVIDIA Blackwell B200 GPUs, valued at approximately $193 million, effectively doubles its total GPU count to around 8,500 units. This move positions IREN to capitalise on the surging demand for high-performance computing (HPC) resources, particularly in AI training and inference tasks, amid a broader industry shift towards advanced, energy-efficient data centre solutions.

Strategic Expansion in AI Cloud Infrastructure

IREN’s latest procurement includes a mix of cutting-edge NVIDIA GPUs, with the fleet now comprising roughly 8,000 Blackwell units alongside 800 H100s and 1,100 H200s. This enhancement is targeted at the company’s Prince George data centre in Canada, which currently operates at 50MW capacity but is designed to scale up to accommodate as many as 20,000 GPUs. Such scalability underscores IREN’s ambition to transition from its roots in bitcoin mining to a dual-revenue model that leverages both cryptocurrency operations and AI cloud hosting.

The investment aligns with broader trends in the AI sector, where demand for next-generation GPUs like NVIDIA’s Blackwell series is outpacing supply. These GPUs, known for their superior performance in handling complex AI workloads, enable providers like IREN to offer scalable cloud services for enterprises requiring intensive computational power. Analysts project that the global AI infrastructure market could exceed $200 billion by 2030, driven by advancements in generative AI and machine learning applications. IREN’s move places it among early adopters, potentially securing long-term contracts with tech firms seeking reliable HPC capacity.

Financial Implications and Funding Strategy

To fund this expansion, IREN has secured $102 million in non-dilutive financing for prior Blackwell purchases, demonstrating a prudent approach to capital management. This strategy avoids equity dilution, preserving shareholder value while enabling rapid scaling. The company’s balance sheet remains robust, supported by cash reserves that fully covered an earlier $130 million GPU acquisition in July 2025. As of 25 August 2025, IREN’s market capitalisation stands at $5.42 billion, with shares trading at $22.41 on Nasdaq, reflecting a 4.57% increase from the previous close of $21.43.

From a valuation perspective, IREN’s forward price-to-earnings ratio is 65.90, based on expected earnings per share of $0.34. This premium valuation suggests investor confidence in the company’s pivot to AI, especially as it complements its bitcoin mining operations, which recently hit a 50 EH/s hashrate milestone. However, the trailing twelve-month EPS remains negative at -$0.31, highlighting the capital-intensive nature of this transition. Book value per share is $6.38, yielding a price-to-book ratio of 3.51, which appears reasonable given the growth prospects.

Industry Context and Competitive Positioning

The push into AI cloud services comes at a time when NVIDIA, the dominant GPU supplier, is experiencing unprecedented demand. NVIDIA’s shares are priced at $179.33 as of 25 August 2025, up 0.75% on the day, with a market cap of $4.37 trillion. The Blackwell architecture, featuring models like the B200 and B300, offers up to 30 times the inference performance of previous generations, making it ideal for large-scale AI deployments. IREN’s ability to procure and deploy these GPUs positions it competitively against pure-play data centre operators like CoreWeave or Lambda Labs, which have also ramped up investments in NVIDIA hardware.

Broader market sentiment, as reported by financial platforms like Investing.com, rates IREN as a ‘Strong Buy’ with an average analyst rating of 1.4. This optimism stems from the company’s dual expertise in energy-efficient data centres—honed through bitcoin mining—and its access to low-cost power sources. For instance, the Prince George facility benefits from hydroelectric power, reducing operational costs and appealing to environmentally conscious clients. Analyst models forecast that AI cloud revenues could contribute significantly to IREN’s top line by fiscal 2026, potentially offsetting volatility in bitcoin prices.

Potential Risks and Analyst Forecasts

While the expansion is promising, it is not without risks. The AI infrastructure boom relies heavily on sustained demand from hyperscalers and startups, which could falter if economic conditions worsen. Supply chain constraints for NVIDIA GPUs have been a recurring issue, though IREN’s recent procurements suggest it has navigated these effectively. Additionally, the company’s shift from mining to AI introduces execution risks, such as integrating liquid-cooled systems for high-density racks.

Labelled analyst forecasts from firms like those contributing to Yahoo Finance project IREN’s revenue growth at 150% year-over-year for 2025, driven by AI cloud contributions. A model-based estimate indicates that full utilisation of the expanded fleet could generate annual revenues exceeding $500 million from AI services alone, assuming average hosting rates of $2–3 per GPU hour. However, these projections are contingent on securing clients; IREN has already demonstrated traction with agreements like an upsized deal for 504 H100 GPUs in 2024.

Long-Term Implications for Investors

IREN’s GPU fleet doubling represents a strategic leap into the AI era, blending its mining heritage with HPC capabilities. This hybrid model could provide resilience against crypto market fluctuations, as AI revenues offer a more stable, recurring stream. For investors, the scalability to 20,000 GPUs signals potential for exponential growth, particularly if NVIDIA’s Blackwell rollout accelerates AI adoption across industries.

In comparison to historical trends, IREN’s 52-week share price range of $5.13 to $22.53 reflects a 337% increase from the low, underscoring market enthusiasm. Over the past 200 days, the stock has risen 101% from an average of $11.15, outpacing many peers in the data centre space. As NVIDIA prepares its earnings release on 27 August 2025, any positive commentary on Blackwell demand could further catalyse IREN’s trajectory.

Ultimately, this expansion illuminates the convergence of energy infrastructure and AI computing, where companies like IREN are uniquely positioned to thrive. Investors eyeing exposure to AI without the pure volatility of chipmakers may find IREN’s balanced approach compelling, provided execution matches ambition.

References

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• Digitimes. (2025, August 25). NVIDIA earnings signal growing demand for Blackwell market. https://digitimes.com/news/a20250825PD227/nvidia-earnings-demand-blackwell-market.html
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• Investing.com. (2025). IREN doubles GPU fleet with 4.2k NVIDIA Blackwell B200 procurement. https://www.investing.com/news/company-news/iren-doubles-gpu-fleet-with-42k-nvidia-blackwell-b200-procurement-93CH-4208693
• Iris Energy. (2025). IREN expands AI cloud: 2.4k NVIDIA Blackwell GPUs. https://irisenergy.gcs-web.com/news-releases/news-release-details/iren-expands-ai-cloud-24k-nvidia-blackwell-gpus
• MarketScreener. (2025). IREN purchases 4.2k NVIDIA Blackwell GPUs; secures financing. https://www.marketscreener.com/news/iren-purchases-4-2k-nvidia-blackwell-gpus-secures-financing-ai-cloud-expanded-to-8-5k-gpus-ce7c50d8d98cf421
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• StockTitan. (2025). IREN purchases 4.2k NVIDIA Blackwell GPUs; secures financing. https://www.stocktitan.net/news/IREN/iren-purchases-4-2k-nvidia-blackwell-gp-us-secures-financing-ai-zb8v61vsgxb1.html