TLDR
- Jefferies launched coverage of Iren (IREN) stock with a Buy recommendation and $79 price objective; shares traded near $58.11 at initiation.
- IREN shares surged approximately 5% during premarket hours Thursday after the analyst report was released.
- The firm emphasized IREN’s approximately 6-gigawatt powered land portfolio and its vertically integrated GPU cloud infrastructure.
- IREN secured a five-year, $9.7 billion Microsoft partnership and a $3.4 billion Nvidia AI cloud agreement, projecting $3.1 billion in annual recurring revenue.
- Over the trailing twelve months, IREN’s revenue climbed 105% as the business shifted from Bitcoin mining operations to AI infrastructure services.
Shares of Iren (IREN) gained roughly 5% during premarket trading Thursday following Jefferies’ decision to initiate coverage with a Buy recommendation and establish a $79 price objective. With the stock hovering around $58.11 when coverage began, the analyst’s target suggests potential appreciation of approximately 36%.
Led by analyst Jonathan Petersen, Jefferies highlighted IREN’s strategic positioning as a vertically integrated AI cloud infrastructure provider controlling a powered land portfolio totaling approximately 6 gigawatts.
The investment thesis centers on IREN’s strategic partnerships with Microsoft and Nvidia, which collectively are projected to generate $3.1 billion in annual recurring revenue.
The Microsoft partnership represents a five-year commitment valued at $9.7 billion for Nvidia GB300 GPU infrastructure, with operations centered at IREN’s 200 MW facility in Childress. The agreement features a $1.9 billion advance payment along with $3.65 billion in GPU financing carrying approximately 6% interest.
According to Jefferies’ analysis, this financial structure enables IREN to recover its $8.8 billion capital investment during the contract period while achieving unlevered internal rates of return surpassing 20%.
Additionally, IREN maintains a distinct $3.4 billion AI cloud partnership with Nvidia. Jefferies believes these strategic relationships position IREN alongside competitors such as CoreWeave (CRWV) and Nebius (NBIS) in the AI infrastructure landscape.
From Bitcoin Mining to AI Infrastructure
IREN originally built its reputation as a Bitcoin mining operation. The company has strategically repositioned itself as a vertically integrated AI cloud infrastructure provider—a transformation that Jefferies characterized as a “compelling strategic pivot.”
Revenue expansion of 105% over the trailing twelve months demonstrates the velocity of this business model transformation.
By maintaining ownership of its land assets and data center infrastructure, IREN possesses operational flexibility to accommodate diverse customer requirements—spanning from powered shell facilities to comprehensive GPU cloud solutions, according to Jefferies.
Expansion Into Europe and Australia
Beyond its established presence in the United States, IREN recently finalized the purchase of Ingenostrum, S.L., commonly referred to as Nostrum Group, which develops AI data center facilities in Spain. This transaction contributes approximately 490 megawatts of secured, grid-connected power capacity and represents IREN’s inaugural entry into European markets.
IREN has also executed a transmission connection agreement for an intended 800 MW data center facility in Bundey, South Australia—projected to rank among the largest data center operations throughout the Asia-Pacific region.
In response to the Australian expansion announcement, B. Riley elevated its price objective on IREN to $96 while maintaining a Buy rating. Macquarie reaffirmed its Outperform stance with a $90 price target.
Needham has adopted a more conservative outlook, reducing its financial projections for IREN due to anticipated delays in AI cloud revenue acceleration through calendar year 2026 and diminished expectations for Bitcoin-related contributions.
Over the past year, the stock has delivered returns of approximately 493%.
