TLDR
- Iren (IREN) stock dropped 6.2% Tuesday to $54.26 as U.S.-EU trade tensions sparked a broader crypto sector selloff
- Volume spiked 11% above normal levels with 44.9 million shares traded during the decline
- Year-to-date gains remain strong at 50%, building on 2025’s 300% rally despite Tuesday’s weakness
- H.C. Wainwright believes the $9.7 billion Microsoft deal remains undervalued in current pricing
- Consensus rating stays at “Moderate Buy” with 13 buy ratings and average $69.36 price target
Iren Limited suffered a 6.2% decline Tuesday, closing at $54.26 as escalating trade tensions between the U.S. and Europe triggered widespread selling in crypto-related equities. The Bitcoin mining and data center operator fell from Monday’s $57.82 close.
Risk assets took a beating as investors sought shelter. Gold prices soared to all-time highs while crypto stocks absorbed heavy losses.
The damage spread across the sector. Strategy crashed 8%. Galaxy Digital dropped 6%. Coinbase and Circle Internet each shed 5%. Direct competitors CoreWeave and Nebius fell 6% and 7% respectively.
Market activity reflected the panic. Iren traded 44.9 million shares, pushing 11% above its typical 40.5 million share daily average. The elevated volume signaled strong selling pressure throughout the session.
Remarkable Year-to-Date Performance Holds Strong
Tuesday’s weakness barely scratches Iren’s 2026 gains. Shares have surged 50% since January 1st. The run extends a remarkable 300% climb posted during 2025.
Analyst Mike Colonnese from H.C. Wainwright sees continued upside. He projects 2026 as a “transformative year” for the AI infrastructure player. Colonnese points to the company’s $9.7 billion five-year Microsoft agreement as a catalyst not yet reflected in valuation.
Goldman Sachs offered a contrasting perspective. The firm started coverage with a neutral rating and $39 target. Goldman expressed doubts about expansion opportunities beyond the Microsoft partnership.
Company Fundamentals and Recent Results
Iren commands a $15.38 billion market cap. The stock trades at 27.97 times earnings with a 4.25 beta reflecting high volatility.
Financial health metrics show strength. Quick and current ratios both stand at 5.52, indicating solid liquidity. The debt-to-equity ratio registers 0.34.
Recent quarterly performance disappointed. The company posted a $0.34 per share loss for the November quarter, missing analyst forecasts calling for $0.14 profit by $0.48. Revenue reached $240.30 million, up 28.3% from the prior year but below the $244.60 million consensus.
Institutional investors control 41% of shares. Several major funds added positions during the fourth quarter.
Wall Street Outlook Remains Constructive
Analyst sentiment leans positive. Thirteen firms rate Iren “Buy” while five assign “Hold” and one recommends “Sell.” The overall “Moderate Buy” consensus reflects broad optimism.
Price targets span a wide range. Forecasts run from $39 to $86, with the $69.36 average implying 28% upside from current levels.
Recent coverage updates skewed bullish. Sanford C. Bernstein maintained “outperform” with a $75 target. Macquarie boosted its objective to $86 with an “outperform” rating. Arete Research launched coverage at “buy” with a $78 price goal.
Zacks Research moved from “strong sell” to “hold” in mid-December. Analysts project the company will earn $0.43 per share for the full fiscal year.
Technical indicators paint a positive picture. The 50-day moving average sits at $45.23. The 200-day average stands at $39.26. Tuesday’s closing price exceeded both benchmarks despite the intraday selloff.
The company reported a negative 3.60% return on equity alongside an 86.96% net margin in its latest filing. These metrics reflect the capital-intensive nature of data center operations.
Moving averages suggest the stock maintains its uptrend. Traders typically view prices above key moving averages as bullish signals for continued momentum.
