Iren's AI Cloud Ambitions Soar Amid Bitcoin Mining Exit

Iren (NASDAQ:IREN) has undergone significant changes in recent months. The company wrote off nearly half a billion dollars in Bitcoin mining hardware, and its transformation is still being assessed by Wall Street.

The catalyst for Iren's surge was the release of FY2026 results on August 27, which showed revenue of $137.2 million missing estimates by 2.52%, with a GAAP net loss of $684 million largely due to a $450.4 million impairment on decommissioned Bitcoin mining hardware.

However, AI Cloud revenue more than doubled sequentially to $70.5 million, and just days later, Blue Owl-managed funds led a $2.4 billion AI factory financing for Iren.

The bull case for Iren rests on contracted revenue already signed, with $4 billion of ARR (annual recurring revenue) contracted for 2026 capacity, of which $1 billion was operating as of late August. The company's partnerships with Microsoft and NVIDIA are also significant, with a $9.7 billion deal and a five-year contract worth up to $3.4 billion, respectively.

If Iren delivers on its planned projects and lands 2027 capacity at rising prices, the target price could reach around $86.60 within twelve months, according to my analysis. However, execution risks remain, including debt-to-equity ratio of 1.87 and operating margin of -148%, as well as customer concentration in Microsoft and NVIDIA.