Broker Canaccord Genuity ( CCORF ) said IREN’s (IREN) new graphics processing unit (GPU) cloud contract with Microsoft ( MSFT ) marks a turning point for the bitcoin (BTC) miner, pushing it firmly into the AI infrastructure space.

The broker reiterated its buy rating on the shares and raised its price target to $70 from $42, citing the five-year, $9.7 billion deal and upside from IREN’s Texas data center expansion.

The shares closed 6.8% lower on Friday, at $62.38.

The contract includes a 20% prepayment from Microsoft ( MSFT ), a projected 32% levered internal rate of return (IRR), and the potential to shift investor focus from mining to AI, analysts led by Joseph Vafi wrote.

IREN ( IREN ) will supply Microsoft ( MSFT ) with Nvidia’s GB300 GPUs from its Horizon data centers in Texas, a project expected to fund about half of the $3 billion Horizon buildout. While chip and power risks remain, Microsoft’s upfront payment and credit backing help reduce uncertainty, the analysts said.

Canaccord called IREN’s upcoming two-gigawatt Sweetwater 1 site, due online in 2026, the next key catalyst as power scarcity drives hyperscaler demand.

The broker also raised its Sweetwater valuation to $32 per share.

IREN’s latest quarter showed $240.3 million in revenue, up 355% year-on-year, with Canaccord highlighting its scale, low-cost power and integration as advantages bridging crypto and AI.

Read more: Wall Street's Biggest IREN Bull Hiked Price Target to $142 After $9.7B Microsoft AI Deal