Iren Stock Gains as Company Projects $3.4 Billion in AI Revenue by 2026

TLDR

• Iren stock dropped over 50% in two months despite tripling earlier in 2024, mainly due to AI sector concerns and Oracle-related rumors that don’t directly affect the company
• The company projects $3.4 billion in annual recurring revenue from AI infrastructure by end of 2026, compared to $501 million total revenue in fiscal 2025
• Iren secured a five-year deal with Microsoft and maintains a strong balance sheet with a 5.52 current ratio
• Fitch Ratings confirmed Iren’s ‘BBB’ long-term credit rating with stable outlook following presentation of its 2025-2030 business plan
• Currently 97% of revenue comes from Bitcoin mining, but AI data center business is expected to become the primary revenue driver

Iren stock has experienced a wild ride in 2024. The company tripled its value earlier this year before losing more than half its worth in less than two months. The stock closed at $39.92 on December 19, 2025.

IREN Limited, IREN

The recent selloff stems partly from rumors about Oracle’s data center projects. Reports suggested Oracle’s $10 billion Michigan data center faced financing issues with Blue Owl. Oracle quickly pushed back on these claims, confirming the project remains on track.

These Oracle rumors dragged down many AI stocks, including Iren. However, the concerns don’t apply to Iren’s business model. The company operates with a pristine balance sheet and maintains a 5.52 current ratio.

Iren holds a five-year agreement with Microsoft for AI infrastructure services. This deal shields the company from worries about OpenAI’s ability to pay Oracle. The Microsoft partnership forms the foundation of Iren’s massive revenue projections.

Bitcoin price declines also contributed to the stock’s recent weakness. The company generated 97% of its first quarter fiscal 2026 revenue from crypto mining operations. Lower Bitcoin prices directly impact Iren’s current revenue and profits.

The AI Infrastructure Pivot

The company expects to generate $3.4 billion in annual recurring revenue from AI cloud services by the end of 2026. This projection represents a massive jump from the $501 million in total revenue reported for fiscal 2025.

All of the projected $3.4 billion will come from AI infrastructure, not Bitcoin mining. The Microsoft deal provides a solid base for this growth. Iren has sufficient energy capacity to support multiple contracts similar in size to the Microsoft agreement.

Chipmaker earnings reports support the case for strong AI demand. Broadcom posted 74% year-over-year revenue growth for AI semiconductors in its fourth quarter of fiscal 2025. Micron Technology beat expectations and issued optimistic guidance with 56.6% year-over-year revenue growth in its first quarter of fiscal 2026.

Rating Confirmation Provides Stability

Fitch Ratings confirmed Iren’s long-term credit rating at ‘BBB’ with a stable outlook on December 22, 2025. The agency reviewed the company’s 2025-2030 business plan before making the decision.

Fitch also reaffirmed senior debt at BBB+ and subordinated debt at BBB-. The rating agency cited Iren’s prudent strategy and selective capital allocation as key factors. Strong exposure to regulated activities also supported the rating.

Fitch expects Iren to maintain ample financial flexibility. The agency projects the company will keep FFO net leverage within comfortable thresholds. These metrics support rating stability for investors and creditors.

The company’s current market cap stands at $13 billion. Trading volume reached 1.8 million shares, well below the average volume of 42 million shares. The stock trades in a 52-week range between $5.13 and $76.87.

Iren shares gained 11.51% to $39.92 on December 19, 2025, recovering from earlier losses. The stock has more than tripled year to date despite the recent pullback. Analysts maintain a Hold rating with a price target around $2.90 for the Italian Iren S.p.A. entity.

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