Microsoft Deal Marks AI Pivot for IREN, Says Canaccord; Price Target Raised to $70

November 10, 2025 — Canaccord Genuity said IREN’s new GPU cloud contract with Microsoft (MSFT) represents a pivotal shift for the bitcoin miner, accelerating its move into the AI infrastructure sector.

The broker reaffirmed its buy rating on the stock and raised its price target to $70 from $42, citing the five-year, $9.7 billion agreement and expansion plans at the company’s Texas data centers.

IREN shares closed 6.8% lower on Friday at $62.38, despite the bullish outlook.

According to analysts led by Joseph Vafi, the Microsoft contract includes a 20% upfront payment, a projected 32% levered internal rate of return (IRR), and could shift investor perception of IREN from a traditional crypto miner to an emerging AI infrastructure provider.

Under the agreement, IREN will supply Microsoft with Nvidia GB300 GPUs from its Horizon data centers in Texas, with the deal expected to fund roughly half of the $3 billion Horizon buildout. While analysts noted potential chip and power availability risks, Microsoft’s prepayment and credit strength mitigate much of the uncertainty.

Canaccord highlighted IREN’s upcoming two-gigawatt Sweetwater 1 facility, scheduled to go online in 2026, as the next major growth catalyst amid tightening power supply for hyperscale operators. The firm also raised its valuation of the Sweetwater site to $32 per share.

In its most recent quarter, IREN reported $240.3 million in revenue, up 355% year-over-year, with Canaccord pointing to the company’s scale, low-cost power, and operational integration as key advantages at the intersection of crypto and AI.