IREN (NasdaqGS:IREN) just inked a $9.7 billion, multi-year cloud services deal with Microsoft, drawing fresh attention from investors. This agreement places IREN at the center of hyperscale AI cloud infrastructure and marks a significant step in its transformation strategy.
See our latest analysis for IREN.
Recent excitement around IREN has sent its share price up a remarkable 496.37% year-to-date, powered by its Microsoft mega-deal and accelerating AI cloud strategy. Momentum has clearly been building, as shown by the 238.10% 90-day gain and the astonishing three-year total shareholder return of 2,000%, as investors reevaluate IREN’s long-term growth story and switching risk profile.
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With IREN’s valuation surging on record deals and ambitious growth targets, investors are now asking if the recent rally leaves more upside ahead or if the market has already priced in the company’s bold future.
According to BlackGoat’s widely followed narrative, IREN’s fair value sits far beyond the latest $62.38 closing price. This paints a picture of a significant disconnect between market price and underlying business prospects. This valuation snapshot is gaining attention as investors gauge the Microsoft deal’s impact.
“IREN owns and operates 4 Bitcoin mining sites in North America, powered by 100% renewable energy, leveraging ‘stranded energy’ from hydro and solar power plants. IREN’s goal is to capitalise on excess renewable energy and support energy networks. Bitcoin mining is just an effective way to do so.”
Read the complete narrative.
Can lightning-fast revenue growth, bold expansion plans, and a transition into AI infrastructure really justify such a high valuation? This narrative points to aggressive numbers, ambitious technology pivots, and a bullish bet on market-shaking margins. Unpack which crucial assumptions are fueling the dramatic upside—what’s fact, and what’s faith?
Result: Fair Value of $98.21 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, uncertainties remain, as execution delays or further shareholder dilution could challenge confidence in IREN’s ambitious growth and AI transition story.
Find out about the key risks to this IREN narrative.
Looking from a market multiples perspective, IREN currently trades at a price-to-sales ratio of 34.1x, materially higher than the peer average of 26.5x and the broader US Software industry average of 4.8x. The fair ratio, calculated by regression analysis, sits at 18.6x. These elevated ratios hint at heightened valuation risk, especially if market enthusiasm fades. Does IREN’s growth story truly justify such a premium?