IREN secures $3.65B A-rated financing for Microsoft GPUs

IREN secured $3.65 billion in financing on Monday to support the GPU buildout tied to its Microsoft cloud contract. The package combines a $2.1 billion U.S. private placement and a $1.55 billion delayed-draw loan.

Fitch assigned an A rating and DBRS an A(low) to the facility. Including customer prepayments from Microsoft, the financing covers about 96% of the $5.81 billion in GPU capital linked to the agreement.

The company reported a blended borrowing cost of roughly 6%, which it attributed to the investment-grade ratings and the cloud contract. IREN characterized the package as the highest publicly rated investment-grade GPU financing announced and the first GPU financing in the U.S. private placement market.

IREN began as a bitcoin miner and has shifted its growth strategy toward AI data center infrastructure over the past year. It signed a multibillion-dollar cloud agreement with Microsoft in late 2025 and formed a partnership with Nvidia for a large-scale AI compute buildout.

Owning the data center facilities where the GPUs will operate improved IREN's financing profile. Co-founder and co-CEO Daniel Roberts stated, “Securing investment-grade financing on these terms reflects both the quality of our customer contracts and the fact that we own the data center infrastructure these GPUs run in.”

The financing closed weeks after IREN completed a $3 billion convertible notes offering. Bernstein analysts had warned that large-scale AI builds are capital intensive and require flexible access to financing, and they noted IREN's expanding power footprint and signed AI compute contracts as strengths.

IREN's shares traded about 2% lower to $62.30 in the first hour of trading on Monday after reaching a more-than six-month high above $68 last week. IREN stated the financing will accelerate deployment of GPU capacity under the Microsoft contract and reduce near-term equity dilution and reliance on shorter-term credit.