IREN Limited completed its acquisition of Ingenostrum, S.L., known as Nostrum Group, securing 490MW of grid-connected power capacity in Spain. The move marks the company's first expansion into Europe as it shifts focus toward AI cloud services. Bitcoin mining revenue fell to $111.2 million from $167.4 million quarter-over-quarter, while AI cloud services revenue rose to $33.6 million from $17.3 million over the same period. The acquisition provides IREN with a local development pipeline and over 50 professionals in engineering, construction, and operations, positioning the Australian-listed company to serve growing European demand for AI compute capacity amid tightening margins in cryptocurrency mining.
IREN Acquires Nostrum Group and Secures 490MW Power Capacity in Spain
The 490MW figure represents secured, grid-connected capacity already in place, not aspirational targets. Over 50 Nostrum employees will continue operating under the IREN brand, bringing local expertise in development, engineering, and operations. Nostrum's operations will continue under the IREN brand, giving IREN an immediate presence in the Spanish market.
IREN co-founder and Co-CEO Daniel Roberts stated that Europe is one of the largest and fastest-growing markets for AI infrastructure, with Spain chosen as the entry point due to renewable power availability and fiber connectivity. Nostrum CEO Gabriel Nebreda described the pipeline his team assembled as "one of Spain's most advanced AI infrastructure pipelines," framing the IREN acquisition as the mechanism enabling development at the speed European AI demand requires.
European AI infrastructure demand is growing rapidly, driven partly by data sovereignty regulations that push enterprises toward locally-hosted compute. The acquisition provides IREN with years of development work and regulatory navigation in a single transaction, bypassing the timeline required to build from scratch.
Bitcoin Mining Revenue Falls 33% as AI Cloud Revenue Grows
In the quarter ended March 31, Bitcoin mining revenue fell to $111.2 million from $167.4 million in the prior quarter. Over the same period, AI cloud services revenue climbed to $33.6 million from $17.3 million. IREN attributed the mining revenue drop to lower average Bitcoin prices and the deliberate removal of mining hardware ahead of GPU installations.
IREN reported a net loss of $247.8 million, driven largely by non-cash impairments tied to decommissioned mining equipment. The company is actively shrinking its mining footprint to make room for higher-margin AI workloads, writing down sunk costs to clear the path for a business model built around long-term AI compute contracts.
Roberts stated in IREN's Q3 update: "The world is structurally short compute, and the bottleneck is delivered data center and GPU capacity."
IREN Holds $3.4 Billion NVIDIA Contract and Targets 480MW AI Capacity
IREN holds a five-year, $3.4 billion AI cloud contract with NVIDIA, one of the largest compute supply agreements disclosed by any Bitcoin miner turned AI infrastructure provider. The company is supporting Microsoft's $9.7 billion cloud deal through its facility in Childress, Texas.
IREN set targets for the end of 2026: 480MW of AI cloud capacity and $3.7 billion in annual recurring revenue. The Nostrum acquisition in Spain adds European megawatts toward that capacity figure, alongside deployments already underway in Texas. The shift from volatile mining income to recurring contract revenue positions IREN for revaluation on cloud infrastructure business metrics rather than cryptocurrency mining performance.
Bitcoin Miners Convert Infrastructure to AI Compute Services
HIVE Digital is converting a data center in Boden, Sweden into a Tier-3 liquid-cooled high-performance computing facility designed to support 2,000 NVIDIA GPUs across the European Union. Bitdeer has conversion plans for its Tydal-2 site in Norway — currently 175MW of online crypto capacity — slated to transition to AI workloads by Q4 2026, alongside conversions planned at Wenatchee, Washington and Knoxville, Tennessee.
The pattern across miners reflects the same logic: power, land, and cooling infrastructure built for Bitcoin mining transfers directly to AI compute without rebuilding from the ground up. Grid connections, permits, and thermal management systems developed over years are now being repriced by the market as AI compute real estate. Public miners are increasingly valued on their ability to deliver contracted AI compute capacity at scale rather than Bitcoin production metrics alone.
FAQ
What did IREN acquire in Spain?
IREN completed its acquisition of Ingenostrum, S.L., known as Nostrum Group, adding 490MW of secured, grid-connected power capacity in Spain. The deal includes over 50 Nostrum employees who will continue operating under the IREN brand, bringing local development, engineering, and operations expertise. This marks IREN's first expansion into the European market.
Why is IREN's Bitcoin mining revenue declining?
Bitcoin mining revenue fell to $111.2 million from $167.4 million in the quarter ended March 31. IREN attributed the drop to lower average Bitcoin prices and the deliberate removal of mining hardware ahead of GPU installations for AI cloud services. The company reported a net loss of $247.8 million driven by non-cash impairments on decommissioned mining equipment.
What AI cloud contracts does IREN hold?
IREN holds a five-year, $3.4 billion AI cloud contract with NVIDIA and is supporting Microsoft's $9.7 billion cloud deal through its facility in Childress, Texas. The company targets 480MW of AI cloud capacity and $3.7 billion in annual recurring revenue by the end of 2026.
