IREN’s latest share move came with a familiar market message: investors are no longer treating the company as a pure-play Bitcoin miner. The stock rose 7.96 percent on Friday to close at EUR 35.69, extending its weekly gain to 11.76 percent. Even after that bounce, it remains 5.18 percent lower over the past 30 days, underscoring how choppy the re-rating has been.
The business case behind the move is increasingly concrete. IREN, formerly known as Iris Energy, has built a backlog of around USD 16 billion, led by USD 9.7 billion from Microsoft and USD 3.4 billion from Nvidia. The company says about 85 percent of its target for more than USD 4 billion in annual recurring revenue by the end of 2026 is already contractually secured. That is a sharp change from the old mining narrative.
A key step in that shift was completed on 3 August 2026, when IREN closed its acquisition of Mirantis for around USD 625 million. The deal gives the group more than just added compute capacity; it also brings the software layer that helps support its “AI-First” push. In parallel, the company is expanding its footprint, including a data-centre campus in South Australia with 800 megawatts of power, while its broader portfolio is expected to reach 5 gigawatts.
The latest numbers also show why the market is paying attention. In the last quarter, IREN reported an AI Cloud revenue contribution of USD 33.6 million, even as the group posted a quarterly loss of USD 247.8 million. Of that, USD 140.4 million came from non-cash impairments, which do not weigh on operating cash in the same way as a cash loss.
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What may matter even more for the next leg is financing. IREN has put together a GPU funding package of around USD 3.65 billion tailored to its Microsoft contract, alongside a five-year partnership with Nvidia. Together, those arrangements are designed to secure the high-end chips needed for the workloads the company wants to serve.
Investors have also been looking past the headline losses and toward ownership trends. BlackRock, State Street and Deutsche Bank have recently increased their holdings, adding institutional weight to the story. The company’s market value now stands at EUR 11.72 billion, a level that looks modest next to the size of the contracted backlog.
At the same time, the valuation gap is not hard to see. IREN is still 47.99 percent below its 52-week high of EUR 68.61, reached in November 2025. On the other side of the range, the stock is far above its 52-week low of EUR 14.70. That leaves plenty of room for debate over whether the current move is the start of a durable rerating or just another leg in a volatile transition.
The operational test is still ahead. IREN is working with existing capacity of 480 megawatts and is also developing Sweetwater-1, a 1.4-gigawatt site that could become a major part of the growth story. For now, the market seems willing to give the company credit for turning power assets once tied to Bitcoin mining into an AI infrastructure platform. The real question is how quickly that contract book turns into revenue.
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