Iren Cuts Price Target to $82 after Q2 Revenue Drops 23%
Iren reported FQ2 revenue of $184.7 million, down 23% q/q, due to lower Bitcoin mining revenue and a reduced hash rate as it shifts capacity to AI compute. Cantor Fitzgerald cut its price target to $82, noting the $9.7 billion Microsoft AI pact and a $3.4B AI cloud ARR goal.
1. Q2 Financial Results
Iren’s FQ2 revenue declined to $184.7 million, a 23% drop quarter over quarter. The decrease was driven by lower Bitcoin mining revenue and a reduced operating hash rate as the company begins repurposing mining capacity for AI computing.
2. Analyst Price Target Revision
Cantor Fitzgerald lowered its price target from $136 to $82 while maintaining an Overweight rating. The firm viewed post-earnings share-price weakness as a chance to accumulate shares, citing the company’s strategic pivot toward higher-growth AI services.
3. Strategic AI Transition
Iren is shifting its data-center operations from Bitcoin mining to AI compute, commissioning new GPUs at its Prince George facility. Management expects AI cloud revenue to gain momentum as more computing capacity comes online throughout the year.
4. ARR Objectives and Infrastructure Expansion
The company has secured approximately $2.3 billion in annualized revenue under contract and is targeting a $3.4 billion AI cloud ARR by end-2026. To support growth, it has expanded secured power capacity to over 4.5 gigawatts, including a new 1.6 GW site in Oklahoma.