IREN Cuts Price Target to $100, Locks 150,000 GPUs in Five-Year Microsoft AI Deal
Bernstein cut IREN’s price target to $100 from $125 while keeping an outperform rating, citing its shift from Bitcoin mining to a hyperscale AI cloud operator. The company has contracted 150,000 GPUs, locked half in a five-year Microsoft deal, and forecasts $1.4 billion AI revenue in 2027.
1. Price Target Revision and Rating
Analysts lowered IREN’s price target to $100 from $125 while maintaining an outperform rating, citing the company’s successful shift away from Bitcoin mining.
2. Strategic Pivot to AI Cloud
IREN is transforming into a hyperscale AI cloud operator, repurposing its existing power and data center sites from Bitcoin mining to high-performance GPU deployments.
3. GPU Deployment and Microsoft Partnership
The company has contracted 150,000 GPUs to support AI workloads, with roughly half committed under a five-year deal with Microsoft.
4. Financial Projections and Infrastructure
Analysts project AI cloud revenue surging from $16 million in 2025 to $1.4 billion in 2027 and $6 billion by 2030, while adjusted EBITDA could reach nearly $5 billion, supported by a 4.5 GW power portfolio and retrofitted sites in British Columbia, Texas, Sweetwater, and Oklahoma.