Iren (IREN) Stock: Why This 50% Drop Could Be A Great Buying Opportunity

TLDR

• Iren stock plunged over 50% in recent weeks despite tripling earlier this year, driven by AI sector concerns and unrelated Oracle rumors
• Company forecasts $3.4 billion annual recurring revenue from AI infrastructure by late 2026 versus $501 million total revenue in fiscal 2025
• Five-year Microsoft partnership and 5.52 current ratio demonstrate financial strength amid transition from Bitcoin mining to AI data centers
• Fitch Ratings maintained BBB long-term credit rating with stable outlook after reviewing 2025-2030 business plan
• Bitcoin mining currently generates 97% of revenue but AI infrastructure will become dominant revenue source

Iren shares have whipsawed investors in 2024. After tripling in value, the stock crashed more than 50% in under two months. The December 19 closing price hit $39.92.

IREN Limited, IREN

Rumors about Oracle’s data center projects triggered much of the selloff. Reports claimed Oracle’s $10 billion Michigan facility faced financing troubles with Blue Owl. Oracle immediately refuted these claims and confirmed the project continues as planned.

The Oracle situation affected numerous AI stocks including Iren. But the concerns miss the mark for Iren’s actual business. The company maintains strong financials with a 5.52 current ratio and zero debt concerns.

Microsoft Partnership Drives Growth

Iren locked in a five-year contract with Microsoft for AI infrastructure services. This agreement insulates the company from Oracle-related worries about OpenAI’s payment capabilities. The Microsoft deal anchors Iren’s ambitious revenue forecasts.

The company projects $3.4 billion in annual recurring revenue from AI cloud operations by end of 2026. This dwarfs the $501 million in total revenue recorded for fiscal 2025. The entire $3.4 billion target comes from AI infrastructure rather than crypto mining.

Bitcoin price weakness also pressured the stock recently. Crypto mining produced 97% of first quarter fiscal 2026 revenue. Falling Bitcoin prices directly hurt current earnings and cash flow.

Chipmakers Signal Strong AI Demand

Recent chipmaker results support robust AI infrastructure demand. Broadcom reported 74% year-over-year revenue growth for AI semiconductors in fiscal Q4 2025. Micron Technology exceeded estimates with 56.6% year-over-year revenue growth in fiscal Q1 2026 and issued bullish guidance.

These earnings demonstrate continued AI momentum despite recent stock market weakness. Iren has adequate energy capacity to sign multiple Microsoft-sized contracts and accelerate revenue growth.

Credit Rating Stays Solid

Fitch Ratings reaffirmed Iren’s BBB long-term credit rating with stable outlook on December 22, 2025. The agency evaluated the company’s 2025-2030 business plan before the decision.

Fitch also maintained BBB+ for senior debt and BBB- for subordinated debt. The rating reflects Iren’s conservative strategy and focus on regulated business activities. The agency expects the company to preserve financial flexibility and maintain comfortable leverage ratios.

Iren’s market capitalization stands at $13 billion. The 52-week trading range spans $5.13 to $76.87. Daily volume reached 1.8 million shares on December 19 versus a 42 million share average.

The stock gained 11.51% to $39.92 on December 19, recovering from deeper losses. Year-to-date performance remains strong with more than 200% gains despite the recent correction. Analysts rate the stock a Hold with varied price targets depending on the entity.

Iren maintains energy capacity to support multiple large-scale AI infrastructure contracts beyond the Microsoft agreement, positioning the company for rapid revenue expansion as AI cloud demand accelerates through 2026.

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