IREN Resolves NYDIG Debt, Accelerates AI Expansion Amid Record Earnings & Nvidia Deals

In a significant development for the digital asset infrastructure sector, IREN Limited, a Nasdaq-listed Bitcoin mining company, has resolved a protracted multi-year legal dispute with NYDIG, agreeing to a $20 million settlement over defaulted loans for Bitcoin mining equipment. This financial resolution coincides with the company’s announcement of record quarterly earnings and an aggressive strategic expansion into artificial intelligence (AI) infrastructure, signaling a pivotal moment for IREN as it diversifies its operational footprint and strengthens its balance sheet.

• IREN Limited, a Nasdaq-listed Bitcoin mining company, has settled a multi-year legal dispute with NYDIG.
• The settlement involves a $20 million payment for defaulted loans related to Bitcoin mining equipment.
• This resolution aligns with IREN’s recent announcement of its best quarterly earnings to date.
• The company is simultaneously pursuing an aggressive strategic expansion into artificial intelligence (AI) infrastructure.
• The dispute originated from approximately $107.8 million in loans for 35,000 Antminer S19 units that defaulted in late 2022.
• The $20 million settlement formally concludes related litigation in Canada and Australia.

Resolution of the NYDIG Legal Dispute

The dispute centered on approximately $107.8 million in loans, originated in 2021, that financed the acquisition of about 35,000 Antminer S19 Bitcoin mining units for two of IREN’s special-purpose vehicles, IE CA3 and IE CA4. These loans defaulted in late 2022, primarily due to a severe Bitcoin market downturn and the unprofitability of fixed-rate hosting and hashrate lease agreements. The $20 million settlement, which includes an $18.2 million payout exceeding previously reserved amounts, formally concludes litigation in Canada and Australia related to these non-recourse vehicles. This resolution is particularly noteworthy within the cryptocurrency industry, where similar disputes often lead to more drastic outcomes such as corporate reorganizations or extensive asset liquidations, underscoring IREN’s ability to navigate financial challenges without disrupting core operations.

Record-Breaking Financial Performance

The timing of this settlement aligns with IREN’s robust financial performance. The company recently reported its best quarterly earnings to date, achieving $187.3 million in revenue for the last quarter, contributing to a record $501 million in revenue for the fiscal year. This impressive performance translated into a 226% year-on-year increase in quarterly revenue for the period ended June 30, returning the company to profitability with a net income of $176.9 million. While the growth of its core Bitcoin mining business was a primary driver, IREN’s strategic pivot towards AI infrastructure has also been a critical factor in its market valuation and future outlook.

Aggressive Expansion into AI Infrastructure

IREN has solidified its commitment to the burgeoning AI sector by becoming a “Preferred Partner” to Nvidia, a leading designer of graphics processing units. This strategic alliance has been bolstered by substantial investments, including the purchase of an additional 1,200 air-cooled NVIDIA B300 GPUs and 1,200 liquid-cooled NVIDIA GB300s, totaling approximately $168 million. This expansion brings IREN’s total NVIDIA GPU arsenal to 10,900 units, encompassing a diverse range including H100s, H200s, B200s, B300s, and GB300s. The newly acquired GB300 systems are slated for installation at IREN’s Prince George campus in British Columbia, where a 10MW liquid-cooled facility capable of supporting over 4,500 GPUs is under construction. The $96 million GB300 purchase is financed through a 24-month lease at a high single-digit interest rate, while the B300s are funded from cash reserves.

Strategic Evolution and Market Outlook

The confluence of resolving a significant legal overhang and aggressively expanding into high-growth AI infrastructure positions IREN as a compelling entity. It is evolving beyond its identity as solely a large-scale Bitcoin miner to a significant player in the critical AI infrastructure market. This dual strategy, combining core strength in digital asset mining with diversification into a technologically advanced sector, appears to have galvanized investor confidence, contributing to recent upticks in its stock performance. The move underscores a growing trend among digital asset companies to leverage their energy infrastructure and technical expertise for broader compute-intensive applications, potentially setting a precedent for industry adaptation and growth.