IREN Limited secures $2.4 billion for AI infrastructure expansion

IREN Limited shares rose over 7% following news of a $2.4 billion private-credit financing facility led by Blue Owl. The 30-month facility, which includes a $1.2 billion senior term loan and $1.2 billion in senior secured notes, is intended to fund air-cooled NVIDIA Blackwell Ultra systems at the company’s Mackenzie campus to meet AI-cloud demand.

Analysts have expressed bullish sentiment regarding IREN’s transition from Bitcoin mining toward AI infrastructure. Bernstein analyst Gautam Chhugani maintained a ‘Buy’ rating with a 12-month price target of $100, citing superior unit economics in IREN’s AI cloud business compared to traditional colocation leasing. Chhugani noted that the company’s strategy is validated by multi-billion-dollar deals with major players such as Microsoft and Nvidia.

While the company reported a 687% increase in AI-cloud revenue, some market observers noted that the 9% financing rate reflects lender concerns regarding execution and technology risks. Additionally, the debt-funded expansion increases the company's financial obligations.