IREN Stock: Subsidiary Secures $3.6 Billion to Build GPU Infrastructure for Microsoft

TLDR

• IREN’s subsidiary IE US Hardware 3 LLC secured $3.6 billion in financing on May 29, 2026
• The package includes a $1.5 billion term loan and $2.1 billion in 5.96% senior notes due 2031
• Funds will support GPU infrastructure for a Microsoft data center contract in Childress, Texas
• Goldman Sachs and JPMorgan arranged the term loan facility
• IREN has provided limited parent guarantees tied to Microsoft contract performance

IREN stock was trading around $62.07, down 2.31% at the time of the announcement.

IREN Limited, IREN

IREN’s wholly owned subsidiary IE US Hardware 3 LLC has entered into $3.6 billion in financing agreements to build out GPU infrastructure for a Microsoft contract.

The deal was signed on May 29, 2026, and filed with the SEC on Monday.

The financing is split into two parts: a $1.5 billion delayed draw term loan, arranged by Goldman Sachs Bank USA and JPMorgan Chase Bank, and $2.1 billion in senior notes carrying a fixed rate of 5.96%, both maturing December 31, 2031.

The funds will be drawn in tranches and are available until May 29, 2027.

The money is earmarked to fund GPU hardware and related costs for a previously announced contract with Microsoft. Under that deal, IREN provides dedicated GPU services at data center facilities in Childress, Texas.

The term loan carries a floating rate of SOFR plus a 2.25% margin, along with a 0.40% annual commitment fee on undrawn amounts.

Both the loan and the notes are subject to scheduled amortization and standard debt covenants, including minimum debt service coverage ratios.

A Structured, Project-Finance Deal

This isn’t a plain corporate bond raise. The structure is closer to project finance — the obligations of IE US Hardware 3 LLC are secured by the actual GPUs purchased, a pledge of the subsidiary’s equity interests, and cash flows generated directly from the Microsoft contract.

That means lender repayment is tied closely to whether Microsoft pays for the GPU services, not to IREN’s broader corporate balance sheet.

IREN has provided limited parent guarantees covering managed services performance and any payment shortfall if Microsoft does not accept or terminates a tranche of GPU services, subject to conditions.

IE US Hardware 3 LLC has also entered into hedge agreements to manage interest rate and power cost exposure, initially guaranteed by IREN until the hedge transitions to a secured structure.

Leverage Up, Revenue Visibility Too

The financing structure puts meaningful leverage on the subsidiary level while keeping some insulation at the parent company.

The deal does give IREN more visibility on future revenues, with the Microsoft contract acting as the primary cash flow anchor for the debt.

The most recent analyst rating on the stock is a Buy with a $99.00 price target.

IREN currently carries a market cap of approximately $22.67 billion.

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