Shares of data center operator IREN have found a tentative floor following a punishing sell-off, with a notable insider transaction and fresh Wall Street analysis providing crucial support. The stock, which had lost more than half its value since its November peak, stabilized as the week closed, offering investors a reprieve from the recent downward spiral.
Congressional Vote of Confidence Meets Wall Street Analysis
The immediate catalyst for the rebound was a report detailing a purchase by U.S. Congressman Cleo Fields. While the investment volume, reported to be between $1,000 and $15,000, is modest, transactions by members of Congress are closely scrutinized by retail investors. Following a severe price decline, such moves are frequently interpreted as a signal of insider confidence.
Concurrently, Goldman Sachs issued a new assessment of the company. The investment bank initiated coverage with a “Neutral” rating and a $39.00 price target. Although not an outright “Buy” recommendation, the analysts underscored an extraordinary growth trajectory. They project revenue will surge from $501 million in fiscal 2025 to $3.8 billion by 2028. This forecast is predicated on IREN’s strategic pivot from pure-play Bitcoin mining toward providing High-Performance Computing (HPC) capacity for artificial intelligence.
The $9.7 Billion Microsoft Deal: A Core Pillar
Central to Goldman’s evaluation is the recently announced $9.7 billion agreement with Microsoft. This contract to supply data center capacity in Texas includes a substantial $5.8 billion allocation for 76,000 GPUs, solidifying IREN’s strategic shift toward AI infrastructure.
Should investors sell immediately? Or is it worth buying IREN?
The analysts did, however, temper expectations, noting that at current price levels the valuation appears “relatively full”—a key reason for the neutral stance. The market, nonetheless, responded positively to the confirmed long-term growth narrative.
Contextualizing the Precipitous Decline
The current share price of €31.86 and its recent stabilization must be viewed against the backdrop of a dramatic collapse. From its 52-week high of €66.51, the stock’s value was more than halved. This plunge was triggered by broader sector concerns over a potential “AI bubble” overheating, coupled with reports of stalled financing talks at competitors like Blue Owl. These industry headwinds negatively impacted IREN, despite the company’s own operational updates—such as the expansion of its GPU fleet in British Columbia—pointing to a fundamentally sound business model.
Investor attention now turns to the completion of a $2.3 billion convertible note placement. While this financing measure will dilute existing shareholders in the near term, it is designed to bolster the balance sheet, providing the necessary financial strength to fulfill the massive capital requirements of the Microsoft partnership.
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