Goldman Sachs and JPMorgan Back IREN Limited with $3.6B Credit Facility
Shares dropped to $36.49 after the Q2 earnings miss but rebounded to $42.67 over the following trading sessions, signaling institutional investor confidence. The company secured a $3.6 billion credit facility at sub-6% interest from Goldman Sachs and JPMorgan to fund its GPU expansion without equity dilution.
1. Earnings Miss Sparks Volatility
IREN Limited reported Q2 revenue and earnings below expectations, triggering an initial sell-off that drove the share price down to $36.49. Over the next sessions, institutional buying propelled the stock back above $42.60, reflecting confidence in the company’s forward-looking infrastructure plans.
2. $3.6B Credit Facility Validates Growth Plan
The company secured a $3.6 billion delayed-draw term loan at interest below 6%, underwritten by Goldman Sachs and JPMorgan Chase. This structure ensures interest is paid only on drawn amounts, preserving cash flow and eliminating immediate equity dilution risks.
3. Oklahoma Campus Diversifies Infrastructure
IREN acquired a 1.6 gigawatt, 2,000-acre data center campus in Oklahoma, tapping the Southwest Power Pool grid. This geographic expansion mitigates Texas-centric regulatory and congestion risks and extends the growth runway into 2028 and beyond.
4. Valuation Remains Attractive Against Peers
With a market capitalization near $12 billion and management targeting $3.4 billion in ARR by end-2026, the stock trades at roughly 3.4 times projected 2027 AI revenue. Pure-play AI infrastructure peers command double-digit multiples, highlighting a potential re-rating opportunity.