IREN Closes $3.65bn Investment-Grade GPU Financing

IREN (NASDAQ: IREN) closed a $3.65bn investment-grade GPU financing facility to support its AI Cloud contract with Microsoft.

Rhea-AI Summary

IREN (NASDAQ: IREN) closed a $3.65bn investment-grade GPU financing facility to support its AI Cloud contract with Microsoft. The package combines a $2.10bn U.S. private placement and a $1.55bn delayed draw term loan, funding about 96% of $5.81bn GPU capex at an average 3.31% all-in financing cost including customer prepayments, and targets 480MW of AI Cloud capacity by end 2026.

Positive

• $3.65bn GPU financing secured to support Microsoft AI Cloud contract
• Blended cost of debt fixed at 6.00%
• Facility and prepayments fund $5.59bn, ~96% of $5.81bn GPU capex
• All-in average GPU financing cost of 3.31% including customer prepayments
• Financing rated A by Fitch and A(low) by DBRS
• Supports expansion to 480MW of AI Cloud capacity by end of 2026

Negative

• Company adds $3.65bn of secured debt against GPUs and contracted cash flows

Argus Jun 1 session

+2.82% close to close Open Argus

Details

News Market Reaction – IREN

In the Jun 1 session, IREN gained 2.82%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement adds another major piece to IREN’s AI build-out, locking in a $3.65bn investment-g...

Analysis

This announcement adds another major piece to IREN’s AI build-out, locking in a $3.65bn investment-grade GPU facility at a blended 6.00% cost of debt and funding about 96% of the $5.81bn GPU capex for its Microsoft contract. It follows recent multi‑billion‑dollar convertible offerings and large GPU purchase commitments, underscoring an aggressive expansion toward 480MW of AI cloud capacity by end 2026. Investors may track execution, leverage trends, and contract performance as this capital is deployed.

Key Figures

GPU financing facility: $3.65bn Blended cost of debt: 6.00% U.S. private placement: $2.10bn +5 more

GPU financing facility

$3.65bn

Investment-grade GPU financing closed to support Microsoft AI Cloud contract

Blended cost of debt

6.00%

Overall cost for $3.65bn GPU financing facility

U.S. private placement

$2.10bn

Fixed-rate component, equivalent to SOFR+2.13%

Private placement spread

SOFR+2.13%

Fixed rate equivalent on $2.10bn tranche

Delayed draw term loan

$1.55bn

Floating-rate DDTL at SOFR+2.25%

DDTL spread

SOFR+2.25%

Floating rate on $1.55bn term loan

GPU capex coverage

96%

Portion of $5.81bn GPU capex funded with facility and prepayments

Total GPU capex

$5.81bn

GPU capex for Microsoft AI Cloud contract

Historical Context

5 past events · Latest: May 26

5 events

1. May 26

   AI cloud contract expansion

   24h Move

   +13.5%

   Signed $1.6bn Dell GPU deal to support $3.4bn AI cloud contract.

2. May 18

   Acquisition announcement

   24h Move

   -4.7%

   Acquired Awaken agency to support global brand and marketing strategy.

3. May 14

   Convertible notes closing

   24h Move

   -9.3%

   Closed $3.0bn 1.00% convertible notes due 2033 with capped calls.

4. May 12

   Convertible notes pricing

   24h Move

   +2.6%

   Priced upsized $2.6bn 1.00% convertible notes offering with premium.

5. May 11

   Convertible notes proposal

   24h Move

   -9.9%

   Announced proposed $2.0bn–$2.3bn convertible notes financing plan.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

gpu, sofr, delayed draw term loan, ddtl, +4 more

8 terms

gpu technical

"IREN Limited (NASDAQ: IREN) ... closed a $3.65bn investment-grade GPU financing facility"

A GPU (graphics processing unit) is a specialized computer chip designed to handle many calculations at once, originally for rendering images and video but now widely used for tasks like artificial intelligence, data analysis and high-performance computing. Investors watch GPU demand and prices because strong sales often signal growth for chip makers and their customers, affect profit margins and capital spending, and can forecast wider trends in gaming, AI adoption and cloud services.

sofr financial

"$2.10bn U.S. private placement at a fixed rate equivalent to SOFR+2.13%"

The Secured Overnight Financing Rate (SOFR) is a market benchmark that measures the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Investors watch SOFR because it acts like a speedometer for short-term interest costs—affecting loan rates, bond yields and the pricing of interest-rate contracts—so movements change borrowing expenses, cash returns and the value of interest-sensitive investments.

delayed draw term loan financial

"$1.55bn delayed draw term loan (DDTL) at a floating rate of SOFR+2.25%"

A delayed draw term loan is a financing agreement that lets a borrower take one or more lump-sum loans from a lender at agreed future dates within a set time window instead of receiving all funds up front. It matters to investors because it changes when and how much debt a company will carry, affecting cash flexibility, interest costs and risk exposure—think of it like an approved credit line you only tap when you need cash for a project.

ddtl financial

"$1.55bn delayed draw term loan (DDTL) at a floating rate of SOFR+2.25%"

A delayed-draw term loan (DDTL) is a committed loan facility where a borrower is allowed to take one or more future cash draws up to an agreed amount rather than receiving the full loan immediately. For investors, a DDTL matters because it gives a company flexible access to funding—like a credit line that can be tapped later—which can change debt levels, interest costs and default risk over time and thus affect equity value and credit safety.

u.s. private placement financial

"The financing comprises a $2.10bn U.S. private placement at a fixed rate..."

A U.S. private placement is a company’s sale of stocks, bonds or other securities directly to a small group of investors under securities-law exemptions, so the offer does not go through a public market registration process. It matters to investors because it can quickly provide funding with less disclosure and wider negotiation of terms, but may increase risk from limited information, potential ownership dilution, and fewer options to resell those securities—think of it like raising money from a handful of trusted backers instead of selling tickets to a public crowd.

interest rate hedges financial

"for which IREN has entered into interest rate hedges."

Interest rate hedges are financial agreements designed to protect borrowers, lenders or investors from unexpected rises or falls in interest rates by effectively locking in, capping, or cushioning future interest costs. They matter to investors because changes in interest rates can quickly change a company’s borrowing costs, bond values and profit forecasts—so using these hedges is like buying insurance or fixing a price today to avoid a surprise bill tomorrow, reducing volatility in expected returns.

offtake financial

"Anchored by Microsoft’s offtake, the transaction received Fitch and DBRS ratings..."

An offtake is a contract where a buyer commits in advance to purchase a company’s future output—such as raw materials, energy or finished goods—often at agreed volumes and prices. For investors, an offtake provides predictable revenue and lowers the risk that production will go unsold, similar to a long-term subscription or pre-order that helps a factory or mine secure funding and plan operations with greater confidence.

investment grade rating financial

"By combining a U.S. private placement with a DDTL and securing an investment grade rating..."

An investment grade rating is a score assigned by a credit-rating agency indicating that a bond issuer or debt is considered reasonably safe and likely to repay its obligations. Investors treat it like a safety label—similar to a product receiving a good quality seal—because higher ratings mean lower risk of default, usually lower borrowing costs for the issuer, and greater appeal to conservative investors and large funds.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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NEW YORK, June 01, 2026 (GLOBE NEWSWIRE) -- IREN Limited (NASDAQ: IREN) (“IREN”) today announced it has closed a $3.65bn investment-grade GPU financing facility to support the delivery of its AI Cloud contract with Microsoft.

Highlights

• Highest publicly rated investment-grade GPU financing announced
• $3.65bn facility at blended cost of debt of 6.00%:¹
  • $2.10bn U.S. private placement at a fixed rate equivalent to SOFR+2.13%²
  • $1.55bn delayed draw term loan (DDTL) at a floating rate of SOFR+2.25%
• Funds 96% of $5.81bn GPU capex for Microsoft contract at all-in financing cost of 3.31%, including customer prepayments³
  
  

Anchored by Microsoft’s offtake, the transaction received Fitch and DBRS ratings of A and A(low) respectively, representing the highest publicly rated investment-grade GPU financing announced and the first GPU financing in the U.S. private placement market.

The financing comprises a $2.10bn U.S. private placement at a fixed rate equivalent to SOFR+2.13%² and a $1.55bn delayed draw term loan at a floating rate of SOFR+2.25%, for which IREN has entered into interest rate hedges. IREN achieved a blended cost of debt of 6.00% notwithstanding higher base rates since the initial DDTL underwriting commitment.¹

The facility is secured against the GPUs and associated contracted cash flows. By combining a U.S. private placement with a DDTL and securing an investment grade rating, IREN was able to access a broader range of investors on attractive terms.

Together with customer prepayments, the facility funds $5.59bn of the $5.81bn (approximately 96%) of GPU capex under the Microsoft contract at an average financing cost of 3.31%³ and strengthens IREN’s capital structure as the Company continues to execute on its expansion to 480MW of AI Cloud capacity by the end of 2026.

Goldman Sachs and J.P. Morgan served as joint lead managers and arrangers. The offering included participation from a broad group of global financial institutions, asset managers and insurance investors.

Daniel Roberts, Co-Founder and Co-CEO of IREN, said:

“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. That combination broadens our access to institutional capital and lowers our cost of capital as we scale.”

About IREN

IREN is a vertically integrated AI Cloud provider, delivering large-scale data centers and GPU clusters for AI training and inference. IREN’s platform is underpinned by its expansive portfolio of grid-connected land and power in renewable-rich regions across North America, Europe and APAC.

Contacts

Investors
ir@iren.com

Media
media@iren.com

Assumptions and Notes

1. Weighted average interest rate across U.S. private placement and DDTL, excluding fees.
2. Margin based on a swap rate as at pricing of U.S. private placement.
3. 3.31% average financing cost calculated as expected annualized cash interest expense across the U.S. private placement and DDTL, divided by the combined weighted average funding balance, including the weighted average outstanding debt balance and the $1.94bn customer prepayment treated as a 0% funding source over the contract term, excluding fees.
   
   

Forward-Looking Statements

This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or IREN’s future financial or operating performance. Forward-looking statements include information concerning possible or assumed future results of operations, including descriptions of our business plan and strategies, revenue targets, expectations relating to capital expenditures, anticipated hardware deliveries, future financings, and trends we expect to affect our business. These statements often include words such as “anticipate,” “believe,” “may,” “can,” “should,” “could,” “might,” “plan,” “possible,” “project,” “strive,” “budget,” “forecast,” “expect,” “intend,” “target”, “will,” “estimate,” “predict,” “potential,” “continue,” “scheduled”. Forward-looking statements may also be made, verbally or in writing, by members of our Board or management team in connection with this news release.

These forward-looking statements are based on management’s current expectations and beliefs. These statements are neither promises nor guarantees, but involve and are subject to known and unknown risks, uncertainties and other important factors that may cause IREN’s actual results, performance or achievements to differ materially from any future results performance or achievements expressed or implied by the forward-looking statements, including IREN’s ability to successfully execute on its growth strategies and operating plans, achieve its targeted annualized run-rate revenue and operating capacity, continue to develop its existing data center sites, design and deploy direct-to-chip liquid cooling systems, and diversify and expand into the market for high performance computing solutions (including the market for cloud services and potential colocation services), along with other important factors discussed under the caption “Risk Factors” in IREN’s Annual Report on Form 10-K, filed with Securities and Exchange Commission (the “SEC”) on August 28, 2025 and our other filings with the SEC. These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any forward-looking statement included in this press release speaks only as of the date of such statement. Except as required by law, IREN disclaims any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What GPU financing did IREN (NASDAQ: IREN) close on June 1, 2026?

IREN closed a $3.65bn investment-grade GPU financing facility to support its AI Cloud contract with Microsoft. According to IREN, the package combines a U.S. private placement and a delayed draw term loan to fund most GPU capital expenditure.

How is IREN's $3.65bn GPU financing structured and priced?

The financing includes a $2.10bn U.S. private placement and a $1.55bn delayed draw term loan. According to IREN, these are priced at fixed SOFR+2.13% equivalent and floating SOFR+2.25% respectively, giving a blended debt cost of 6.00%.

What portion of IREN's Microsoft GPU capex is funded by the new facility?

The facility and customer prepayments fund about $5.59bn of $5.81bn GPU capex, roughly 96%. According to IREN, this results in an average all-in financing cost of 3.31% for the Microsoft-related GPU investment program.

What credit ratings did IREN's GPU financing receive from Fitch and DBRS?

The GPU financing received an A rating from Fitch and an A(low) rating from DBRS. According to IREN, this represents the highest publicly rated investment-grade GPU financing announced and the first such deal in the U.S. private placement market.

How will IREN's $3.65bn GPU financing affect its AI Cloud expansion plans?

The financing supports IREN’s planned expansion to 480MW of AI Cloud capacity by the end of 2026. According to IREN, securing this capital strengthens its capital structure while backing delivery under the long-term AI Cloud contract with Microsoft.

What collateral secures IREN's $3.65bn GPU financing facility?

The facility is secured against the GPUs and associated contracted cash flows from the Microsoft AI Cloud agreement. According to IREN, this structure, combined with investment-grade ratings, helped broaden access to institutional investors on specified financing terms.