IREN's European expansion begins with Nostrum purchase amid growing AI focus
IREN secures approximately 490 megawatts of power capacity in Spain through the deal, advancing the company's strategy to diversify from Bitcoin mining into European AI cloud infrastructure.
The Bitcoin mining company IREN has finalized the purchase of Nostrum Group, a data center development firm based in Spain, signaling the company's first foray into European markets as it expands its artificial intelligence cloud computing operations.
In a Monday press release, IREN announced that the purchase brings approximately 490 megawatts of grid-connected, secured power capacity located in Spain, in addition to a robust development pipeline and a team of more than 50 professionals specializing in engineering, construction, development and operational management.
The transaction increases IREN's worldwide power capacity portfolio to roughly 5 gigawatts, with the newly acquired Spanish infrastructure accounting for approximately 10% of that aggregate total.
According to IREN co-founder and co-CEO Daniel Roberts, Spain presents an attractive blend of renewable energy resources and fiber optic connectivity infrastructure, establishing a strategic foothold from which the company can address the expanding European market demand for AI-related infrastructure.
Europe is one of the largest and fastest-growing markets for AI infrastructure, and Spain is among its most compelling entry points.
The purchase represents a key component of IREN's strategic shift toward AI cloud computing services, which offer more stable, contract-driven revenue streams amid challenges posed by increasing mining difficulty levels and fluctuating Bitcoin (BTC) market valuations that have put pressure on cryptocurrency mining profitability.
The strategic direction also positions IREN alongside a wider industry movement of Bitcoin mining operations establishing AI infrastructure throughout Europe. HIVE Digital has been transitioning portions of its Swedish operations for AI computation purposes, while Bitdeer is in the process of developing AI data center infrastructure in Norway.
IREN accelerates AI cloud pivot
Based on IREN's financial performance for the quarter ending March 31, Bitcoin mining operations continued to represent the company's primary revenue generator. The firm recorded $111.2 million in revenue from mining activities, in contrast to $33.6 million generated through its AI cloud computing services.
IREN indicated that AI cloud revenue increased from $17.3 million during the prior quarter, whereas Bitcoin mining revenue decreased from $167.4 million. The company cited the reduction in mining income as partially stemming from reduced average BTC price levels and the retirement of certain mining equipment.
Financial analysts from Bernstein have previously indicated that IREN may ultimately wind down a significant portion of its Bitcoin mining operations as the company reconfigures existing facilities to accommodate AI cloud computing infrastructure. As of March 31, IREN disclosed having approximately 150,000 GPUs either deployed or in the procurement pipeline, which analysts estimate has the potential to generate a $3.7 billion annual revenue run rate.