IREN's Radical Transformation: Bitcoin Mining to Be Phased Out by 2026 as $1.6 Billion Dell Order Tightens AI Focus

The clock is ticking on IREN’s Bitcoin-mining operations. By the end of 2026, the company expects to have completely exited the business, having repurposed its infrastructure to serve the booming market for AI cloud services. The migration, already underway, accelerated sharply last week with a blockbuster hardware order from Dell worth roughly $1.6 billion.

The deal, announced on May 26, covers GPUs, servers, storage, networking gear, integration services and warranties — all bound for IREN’s Childress, Texas, data center. The Blackwell systems are slated to go live in early 2027 and underpin a three-year managed AI cloud contract valued at $3.4 billion. Once fully operational, the site is expected to generate annualized recurring revenue of $4.4 billion, up from a prior projection of $3.7 billion.

Mining Revenue Drops as AI Cloud Brings in More

The financial case for the pivot is laid bare in the latest quarterly figures. Bitcoin-mining revenue slid to $111.2 million from $167.4 million in the prior quarter, as the company began idling its mining rigs and installing GPU clusters instead. In contrast, AI cloud revenue more than doubled to $33.6 million, underscoring the immediate payoff of the strategic shift.

Goldman Sachs, for its part, has already slashed its revenue forecasts for IREN’s crypto-mining segment. The bank raised its price target to $50 from $44 but maintained a neutral rating, citing uncertainty around the pace of the transition.

Should investors sell immediately? Or is it worth buying IREN?

Wall Street Split on Valuation

Not everyone is betting on the same upside. Over the past six months, the median analyst target among eight estimates stood at $82.50. B. Riley Securities’ Lucas Pipes lifted his target to $88 from $83 on May 27, keeping a buy rating. He cited the rapid scalability of Childress’s second and third phases and rising hyperscaler demand. Macquarie holds the highest target on the Street at $90, having upgraded IREN earlier. On the other end, JP Morgan’s Reginald Smith sees the stock worth just $46.

Investors responded sharply last Wednesday: the stock surged 13.5%, with more than 85 million shares changing hands. By Friday, the shares had given back a sliver of those gains, closing at €54.50 in European trading, down 0.89% on the day. Still, the weekly advance stood at roughly 11.5%.

Year to date the stock is up 49.44%, and over the trailing 12 months it has soared 617.29%. The 52-week range spans from €7.38 to €66.51.

Raising Capital — and Accepting Dilution

To fund the ambitious buildout, IREN closed a $3.0 billion convertible bond offering in mid-May, including a fully exercised $400 million greenshoe option. Net proceeds came to roughly $2.96 billion. The notes carry a 1.00% coupon and a 32.5% conversion premium, with a conversion price of $110.30 per share — roughly double the May 11 closing price of $55.15.

A subsequent equity offering weighed on the stock, but observers view the dilution as a necessary price to pay for ramping AI capacity.

IREN at a turning point? This analysis reveals what investors need to know now.

A Marketing Touch to Complement the Tech

In a move that caught some by surprise, IREN also acquired the creative agency Awaken and brought its founder, Chris Parker, aboard as a senior executive. Awaken had already been handling IREN’s external marketing. The deal is intended to sharpen the brand as IREN expands into new geographies and customer segments.

Technical Levels to Watch

On the charts, resistance sits at $68.13 — the intraday high reached on Wednesday. A support zone has formed around $58.60. Whether IREN can challenge the resistance in the coming weeks will likely hinge on the announcement of the first hyperscaler contracts for the Childress facility.

For now, the transformation narrative is firmly in place. IREN is betting the entire company on AI infrastructure, and the market is watching every step of the transition.

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IREN Stock: New Analysis - 30 May

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