IREN Secures $3.65 Billion in Investment-Grade GPU Financing for Microsoft AI Cloud Contract

Bitcoin mining and AI cloud service provider IREN has announced the completion of a $3.65 billion investment-grade GPU financing to support its AI cloud service contract with Microsoft. According to Foresight News, the financing includes $2.1 billion in U.S. private placement fixed-rate bonds (fixed rate equivalent to SOFR+2.13%) and a $1.55 billion delayed draw term loan (floating rate SOFR+2.25%), with a combined financing cost of 6.00%. Fitch and DBRS have rated the financing A and A (low), respectively, marking it as the highest-rated GPU investment-grade financing disclosed to date and the first to enter the U.S. private market. The financing, along with customer prepayments, covers approximately 96% of the $5.81 billion GPU capital expenditure under the Microsoft contract, with a combined financing cost of 3.31%. Goldman Sachs and JPMorgan served as joint lead underwriters for the transaction.