Key Takeaways
- Jefferies launched coverage of Iren (IREN) with a Buy recommendation and $79 price objective; shares were around $58.11 at the time.
- The stock climbed approximately 5% in premarket hours Thursday after the analyst report was published.
- Jefferies emphasized IREN’s approximately 6 gigawatt land portfolio and fully integrated GPU cloud infrastructure.
- The firm secured a five-year, $9.7 billion agreement with Microsoft and a $3.4 billion Nvidia AI cloud partnership, aiming for $3.1 billion in annual recurring revenue.
- Over the trailing twelve months, IREN’s revenue surged 105% as the business shifted from cryptocurrency mining to AI infrastructure services.
Shares of Iren (IREN) rallied approximately 5% during premarket hours Thursday after receiving a Buy rating from Jefferies alongside a $79 price objective. With shares changing hands near $58.11 when coverage began, the analyst’s target suggests potential upside of roughly 36%.
Jonathan Petersen, an analyst at Jefferies, spearheaded the coverage launch, emphasizing IREN’s standing as a fully integrated AI cloud operator controlling a powered land portfolio of about 6 gigawatts.
The investment firm highlighted IREN’s partnerships with Microsoft and Nvidia as fundamental pillars supporting the bullish thesis. Combined, these agreements are projected to generate $3.1 billion in annual recurring revenue.
The Microsoft partnership encompasses a five-year commitment valued at $9.7 billion for Nvidia GB300 GPU infrastructure, centered at IREN’s 200 megawatt Childress location. The agreement features a $1.9 billion upfront payment plus $3.65 billion in GPU financing carrying approximately 6% interest.
According to Jefferies, this framework enables IREN to recover its $8.8 billion capital outlay during the contract period, generating unlevered internal rates of return above 20%.
Additionally, IREN secured a distinct $3.4 billion AI cloud partnership with Nvidia. Jefferies noted these strategic relationships position IREN alongside competitors like CoreWeave (CRWV) and Nebius (NBIS).
Transformation From Cryptocurrency Mining to AI Services
IREN originally operated predominantly as a Bitcoin mining operation. The company has undergone a dramatic transformation into a vertically integrated AI cloud infrastructure provider, a transition Jefferies characterized as a “compelling strategic pivot.”
Revenue expanded 105% during the past twelve months, demonstrating the velocity of this business model evolution.
Controlling proprietary land assets and data center facilities provides IREN with operational agility to accommodate diverse customer requirements — spanning from powered shell structures to comprehensive GPU cloud services, according to Jefferies.
Geographic Expansion Across Europe and Australia
Beyond its current operations in the United States, IREN recently finalized the purchase of Ingenostrum, S.L., operating as Nostrum Group, a Spanish developer of AI data center facilities. This transaction contributes approximately 490 megawatts of secured, grid-connected electrical capacity and represents IREN’s inaugural entry into European markets.
IREN additionally executed a transmission connection agreement for a planned 800 megawatt data center facility in Bundey, South Australia — projected to become among the largest data center installations across the Asia-Pacific region.
After the Australian development announcement, B. Riley increased its price objective for IREN to $96 while maintaining a Buy rating. Macquarie reaffirmed an Outperform rating accompanied by a $90 price target.
Needham has adopted a more conservative stance, reducing its forecasts for IREN due to an anticipated slower ramp-up of AI cloud revenue through 2026 and diminished expectations for Bitcoin-related contributions.
Shares have delivered approximately 493% returns during the past year.
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