Bitcoin's AI Cloud Deal: Who Actually Benefits Here?
IREN's AI Cloud Deal: Is This the Future, or Just Another Crypto Pipe Dream?
Okay, so IREN, a Bitcoin miner, somehow landed a $9.7 billion AI cloud deal with Microsoft. Let's just unpack that for a second. A Bitcoin miner? Partnering with Microsoft? It's like seeing your grandma suddenly become a TikTok star. You're happy for her, but also deeply, deeply confused.
They're saying the GPUs will be rolled out through 2026 at IREN's Texas campus. Texas, huh? Makes sense. Everything's bigger in Texas, including, apparently, the hype around AI. And IREN's co-CEO is all smiles, calling it a "milestone partnership." Milestone to what, exactly? Milestone to the next crypto winter when everyone realizes these AI plays were just a desperate attempt to stay relevant? I mean, come on.
Bernstein analysts are already tripping over themselves, saying IREN's AI cloud buildout could deliver $500 million in annual revenue. $500 million? By early 2026? That's…optimistic, to say the least. It's like they're drinking the same Kool-Aid. And of course, the stock jumped. Classic. Pump it up, boys! Get those retail investors excited about something they don't understand. I'm sure Microsoft knows what it's doing...right? IREN shares surge nearly 30% as bitcoin miner inks $9.7 billion AI cloud deal with Microsoft
The Great Bitcoin Pivot
The thing that really gets me is this whole "AI-diversifying bitcoin miners" trend. Apparently, because they have access to power and data centers, they can just magically pivot to AI. It’s like saying because I can bake a cake, I can also perform brain surgery. The skills just don't translate that easily. Sure, they've got the infrastructure, but do they have the expertise? The talent? The actual brains required to compete in the AI space?
And Bernstein, bless their hearts, is out here upgrading price targets for everyone – CORZ, RIOT, CLSK. Every U.S.-listed bitcoin miner is suddenly an AI genius. Shareholders rejected the CoreWeave deal for CORZ, but Bernstein is hinting at a new partnership. So, basically, they're saying, "Don't worry, guys, we'll find someone else to overpay for your stuff!"
But wait a minute. Strategy (MSTR) is still buying Bitcoin like it's going out of style. They added 397 BTC last week, bringing their total to over 641,000 coins. That's...a lot of faith in a volatile asset. And they funded it by selling common stock? Risky move, offcourse. Their share price is tanking, so it's unlikely they'll be buying much more.
Microsoft's Master Plan?
So, what's Microsoft's angle here? Are they genuinely impressed with IREN's "expertise," or are they just hedging their bets? Maybe they see something we don't. Or maybe they're just trying to corner the market on GPU access, and IREN is a convenient pawn in their game. Jonathan Tinter from Microsoft is quoted saying, "IREN's expertise...combined with their secured power capacity makes them a strategic partner." Strategic partner? Or strategic acquisition target down the line?
I mean, let's be real, Microsoft doesn't need IREN. They could build their own AI cloud infrastructure from scratch if they wanted to. They have the resources, the talent, and the global reach. So, why partner with a Bitcoin miner? Is it about speed to market? Access to cheap power? Or something else entirely...something we're not seeing?
The whole thing feels…forced. Like everyone's trying to jump on the AI bandwagon before it leaves the station. And honestly, I can't shake the feeling that a lot of these companies are going to get left behind, broke and holding a bunch of useless GPUs. Then again, maybe I'm just being cynical. Maybe IREN really is the future of AI cloud computing. But I doubt it.