IREN Limited to Launch 1.4GW Sweetwater 1 AI Data Center in April
IREN Limited has secured a 1.4GW Sweetwater 1 AI data center in Texas due online in April, with a 3GW overall development pipeline to support AI workloads. The company’s pivot from cryptocurrency mining to AI infrastructure positions it to meet growing gigawatt demands highlighted by OpenAI’s computing needs.
1. Institutional Ownership Shifts
During the third quarter, Drive Wealth Management LLC reduced its stake in IREN Limited by 79.2%, selling 32,424 shares and retaining 8,500 shares valued at $399,000 at quarter end. Other institutional moves included Global Retirement Partners LLC initiating a position worth $25,000 and Vermillion Wealth Management Inc. deploying approximately $74,000 into new shares. Advisors Asset Management Inc. expanded its holding by 68.4%, adding 1,839 shares to reach 4,528 shares valued at $66,000. SLT Holdings LLC and Foundations Investment Advisors LLC each established new stakes of about $146,000 during the second quarter. In total, institutions and hedge funds now hold 41.08% of the company’s shares, underscoring the evolving investor landscape for IREN.
2. Recent Earnings and Operating Metrics
In its most recent quarterly report, IREN posted revenue of $240.3 million, up 28.3% year-over-year, but missed consensus estimates by $4.3 million. The company recorded a net margin of 86.96% and reported a negative return on equity of 3.60%. Adjusted loss per share was $0.34, missing analyst forecasts by $0.48. IREN’s balance sheet shows a current ratio of 5.52 and debt-to-equity of 0.34, reflecting strong liquidity and moderate leverage. Management highlighted continued revenue growth against rising power costs and reiterated guidance for full-year adjusted earnings per share of approximately $0.43.
3. Analyst Ratings and Strategic Outlook
Equity research firms have shifted their outlook on IREN over recent months. Wall Street Zen upgraded the rating from sell to hold, while Macquarie and Roth MKM have each raised their target assessments and maintain outperform and buy stances, respectively. UBS Group and BTIG Research reaffirmed buy recommendations, with BTIG elevating its target by more than double from prior levels. Among 19 coverage analysts, 13 recommend buy, five recommend hold and one issues a sell opinion. Consensus forecasts reflect moderate buy sentiment, with an average target price implying upside potential driven by the company’s pivot into AI-ready data center operations and expanding gigawatt capacity pipeline.