Bitcoin News Today: IREN's AI Bet Ignites 30% Surge Amid Bullish Projections and Execution Warnings

IREN shares surged 30% to a record $75.73 after the company inked a $9.7 billion AI cloud infrastructure deal with Microsoft and Dell, sparking a wave of analyst optimism and reshaping its investment narrative. The partnership, which will enable IREN to construct 200MW of liquid-cooled data centers by 2026, has pushed its secured power portfolio to 3GW—placing it among the largest AI-capable infrastructure players globally. Funding for the expansion will come from customer prepayments, operating cash flows, and a $1.125 billion oversubscribed convertible note offering, underscoring investor confidence in its AI transformation, according to an Investing.com analysis.

Wall Street's most bullish analyst, Chhugani of Roth Capital, raised his price target for IREN to $142 from $100, calling the Microsoft deal a "game-changing anchor tenant" that could generate $500 million in annual AI cloud revenue by 2026. Bernstein Research projected even higher potential, forecasting $2 billion in annual recurring AI cloud revenue by 2027, while Cantor Fitzgerald also upgraded its target to $142, according to a Coindesk report. These upgrades contrast with a recent wave of analyst downgrades, which cited valuation concerns amid IREN's rapid pivot from Bitcoin mining to AI infrastructure. Despite short-term skepticism, the company's ability to secure 23,000 Nvidia GPUs—including Blackwell B200s—and raise over $1 billion in convertible notes highlights persistent demand for its high-margin AI cloud services, per a SimplyWallSt analysis.

IREN's strategic pivot has redefined its business model and valuation. Once a Bitcoin miner operating in Australia, Canada, and the U.S., the company now trades at a 172.79 P/E ratio, rivaling early-stage AI infrastructure peers like CoreWeave and Applied Digital. Its vertically integrated model—owning power, data centers, and GPU fleets—positions it to capitalize on hyperscalers' insatiable demand for AI compute. With 2.9GW of total capacity across six North American sites, IREN's infrastructure is 90% utilized under current contracts, leaving ample room to scale with Microsoft or other clients, a Seeking Alpha article notes.

However, analysts caution that IREN's aggressive expansion is partially funded by debt and convertible notes, which could pressure free cash flow if execution falters. H.C. Wainwright downgraded the stock to Sell with a $45 target, citing "execution risk" and "irrational exuberance" following its parabolic rally. The stock's technical indicators also suggest potential overextension, with a Relative Strength Index (RSI) near overheated levels and short-term consolidation expected around $65–$70, according to the Investing.com analysis.

IREN's AI cloud business is accelerating rapidly, having doubled its GPU count to 23,000 and securing $225 million in contracted revenue. The company now aims for $500 million in annualized AI cloud revenue by Q1 2026, alongside $1 billion in Bitcoin mining revenue. This dual-income stream differentiates it from peers like TeraWulf and Applied Digital, which rely more heavily on single business lines, as noted in the SimplyWallSt analysis and a TradingView note. Meanwhile, IREN's valuation remains stretched, trading at a forward P/E of 61.57x and forward EV/Sales of 15.40x—well above industry averages—though its premium is justified by its leadership in AI infrastructure.