IREN pivots from Bitcoin mining to AI data centers amid heavy debt and large capex plan
IREN Ltd announced that it has decommissioned its Bitcoin mining hardware and is building high‑density AI data‑center capacity, securing multi‑billion‑dollar contracts with Microsoft and Anthropic. The transition pushed AI Cloud revenue to $70.5 million in Q4, representing 51.4% of total revenue. The company carries $7.8 billion of debt and has guided fiscal‑2027 capital expenditures of $25 billion to $30 billion. Shares fell about 40% to $24.80, while analysts maintain an average price target of $77.81.
Why it matters
The debt load and $25‑$30 billion capex plan increase financial risk, meaning investors may face heightened volatility and potential dilution if financing conditions tighten. The new AI contracts and growing ARR could improve long‑term revenue visibility if the capital‑intensive rollout succeeds.
Key facts
- 1Shares traded near $24.80 after a 40% decline over the past month. investing.com
- 2Wall Street analysts maintain an average price target of $77.81. investing.com
- 3AI Cloud revenue in fiscal Q4 was $70.5 million, 51.4% of total revenue. investing.com
- 4Total debt stood at $7.84 billion at the end of fiscal 2026. investing.com
- 5Management guided fiscal 2027 capital expenditures of $25 billion to $30 billion. investing.com
- 6Contracted annual recurring revenue exited the quarter at approximately $500 million and is expected to exceed $4 billion by the end of calendar 2026. investing.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.