Bitcoin miner IREN don close deal wit Nostrum to scale AI cloud for Europe
Bitcoin miner IREN tok say dem don finish di takeover of Ingenostrum (Nostrum Group) to quicken dia AI cloud growth for Europe. Di deal add about 490MW of secured, grid-connected power for Spain, plus local development pipeline and team of ova 50 workers. Nostrum operations go dey run under di IREN brand, making Spain IREN first European market outside dia existing power footprint.
For di same update, IREN talk say dis move na strategic shift from pure BTC mining to AI compute infrastructure, say renewable power and fiber connectivity na di main advantages. Financially, mining still dey under pressure: BTC mining revenue drop to $111.2M (from $167.4M) for di quarter wey end March 31, while AI cloud services revenue grow to $33.6M (from $17.3M). IREN also post $247.8M net loss, mainly because of non-cash impairments related to decommissioned mining hardware.
Strategic targets include 480MW of AI cloud capacity by 2026 and $3.7B in annual recurring revenue by year-end. IREN mention five-year, $3.4B AI cloud contract with NVIDIA and support for dia $9.7B Microsoft cloud agreement for Texas. Company say dia GPU footprint — about 150,000 GPUs installed or on order — fit support $3.7B annual revenue run rate.
For crypto traders, dis na incremental diversification away from BTC, but short-term market relevance likely still go follow Bitcoin mining cycle conditions and BTC price, given di recent revenue decline from mining.
Neutral
IREN wey close Nostrum deal na good sign say dem dey diversify toward AI compute and longer‑term infrastructure revenue, but short‑term financial picture still show say BTC mining revenue dey fall and big net loss dey because dem write down mining hardware. That mean any immediate market reaction for BTC go likely dey driven more by BTC price and mining‑cycle conditions than IREN’s AI strategy. For long term, AI cloud contracts (NVIDIA/Microsoft) fit reduce miners’ sensitivity to BTC volatility, but dis news no yet clearly show say dem go quickly reduce BTC exposure.