A technical breakout is forming in this crypto-turned-AI play

Iren is running toward a technical breakout level and away from its former life of a bitcoin mining operation. The transformational story from a crypto miner to an AI infrastructure is real, helped with AI cloud services revenues that nearly doubled from $17.3 million to $33.64 million in the fiscal third quarter. The company has a long way to go to clean up their messy financials, but a partnership announced with Nvidia for a five-year AI cloud contract to deploy Blackwell GPUs across 60 megawatts of capacity in Texas will certainly help. According to Q3 earnings filing, "issued to NVIDIA a 5-year right to purchase up to 30 million shares of ordinary stock at an exercise price of $70 per share, resulting in a right to invest up to $2.1 billion." When your GPU supplier is also betting on your company, that's a meaningful signal. Back in March, Microsoft signed a $9.7 billion deal with Iren to gain access to their Nvidia GB300 chips. In turn, Iren made a separate agreement with Dell to purchase $1.8 billion in related equipment to support the deal. Again, this is not a clear-cut bullish fundamental assessment, but a bet two and three years into the future. Revenues are expected to grow from $764 million this year to $3.1 billion in fiscal 2027, to $5.82 billion in fiscal 2028 to $9.55 billion in fiscal 2029. But those revenue projections come at a cost of free cash flow projections. …