TLDR
- IREN stock rose 7.3% to $44.68 on Friday, with around 35.6 million units traded.
- The company secured $2.4 billion in private-credit financing led by Blue Owl to deploy NVIDIA Blackwell Ultra systems.
- AI-cloud revenue surged 687% to $128.8 million for the full fiscal year ended June 30, 2026.
- Analysts hold a consensus “Moderate Buy” rating with an average price target of $75.67, implying around 69% upside.
- Risks include a record net loss, a debt-to-equity ratio of 1.80, and financing costs of approximately 9%.
IREN stock jumped 7.3% to $44.68 on Friday, touching an intraday high of $44.75. Around 35.6 million units changed hands during the session, down 17% from its average daily volume.
The move came after two headline catalysts landed in close succession: a major financing deal and blowout AI-cloud revenue numbers from its fiscal Q4 2026 results.
IREN secured $2.4 billion in private-credit financing led by Blue Owl Capital. The package includes a $1.2 billion senior term loan and $1.2 billion in senior secured notes. The 30-month facility will fund air-cooled NVIDIA Blackwell Ultra GPU systems at its Mackenzie campus.
The financing carries an interest rate of roughly 9%, reflecting lender appetite for GPU-backed infrastructure while pricing in execution risk.
On August 27, IREN released fiscal Q4 2026 earnings. For the full year ended June 30, AI-cloud revenue hit $128.8 million, up 687% year over year. In Q4 alone, AI-cloud revenue came in at $70.5 million, up 110% from the same period last year.
Revenue Mix Tells a Complicated Story
Despite the AI-cloud surge, total revenue fell 27% to $137.23 million for the full year. Bitcoin mining, once the core business, is now clearly taking a back seat.
Citizens analyst Gregory Miller called out that IREN’s “underlying AI cloud business continues to gain momentum.” He kept his $80 price target, implying around 79% upside from Friday’s close.
Bernstein analyst Gautam Chhugani was equally upbeat, arguing IREN has “aggressively executed across its cloud business.” He maintained his $100 price target and Buy rating, which implies around 124% upside.
H.C. Wainwright’s Mike Colonnese also reiterated a Buy, highlighting improving pricing power for GPU capacity as a key driver.
Cantor Fitzgerald held its “overweight” rating with a $99 price target as of August 28. Compass Point kept its “buy” rating with an $85 target on the same date. Citigroup reaffirmed a “market outperform” rating.
Weiss Ratings moved in the other direction, downgrading IREN from “sell (d+)” to “sell (d)” this week.
Risks Are Hard to Ignore
The balance sheet carries a debt-to-equity ratio of 1.80, and the company reported a record net loss in its latest fiscal year. Critics have flagged that spending on AI compute by “neocloud” companies may be running ahead of returns.
The stock carries a beta of 4.28 and a PE ratio of -19.09, reflecting its high-risk, high-growth profile.
IREN’s 50-day moving average sits at $40.11, and its 200-day moving average is $45.43, putting Friday’s close just below the longer-term trend line.
The company says it has secured $2.8 billion in total contract value and has sold out its GPU capacity for all of calendar year 2026. IREN expects to reach more than $4 billion in annual recurring revenue by year-end.
Of 21 analysts covering the stock, 15 rate it a Buy, three a Hold, and two a Sell, for a consensus “Moderate Buy” and an average price target of $75.67.
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