IREN stock climbed 7.3% to $44.68 on Friday, touching an intraday high of $44.75. Roughly 35.6 million units changed hands during the session, about 17% below the stock's average daily volume.

The move followed two headline catalysts arriving in close succession: a major financing deal and strong AI-cloud revenue figures from IREN's fiscal Q4 2026 results. The pair of headlines underscore how quickly IREN, once known primarily as a Bitcoin miner, is being re-evaluated as an AI infrastructure provider — a transition several former mining peers have pursued as demand for rented GPU capacity has grown.

$2.4 Billion Private-Credit Financing

IREN secured $2.4 billion in private-credit financing led by Blue Owl Capital. The package consists of a $1.2 billion senior term loan and $1.2 billion in senior secured notes. The 30-month facility will fund air-cooled NVIDIA Blackwell Ultra GPU systems at the company's Mackenzie campus.

The financing carries an interest rate of roughly 9%, a level that reflects lender appetite for GPU-backed infrastructure while also pricing in execution risk. The deal also reflects a broader shift in how data-center buildouts are funded: as AI capex has soared, private-credit lenders have increasingly stepped in to bankroll GPU purchases, an asset class traditional banks have been more cautious about financing.

AI-Cloud Revenue Surges

On August 27, IREN released its fiscal Q4 2026 earnings. For the full fiscal year ended June 30, AI-cloud revenue reached $128.8 million, up 687% year over year. In the fourth quarter alone, AI-cloud revenue came in at $70.5 million, up 110% from the same period a year earlier.

Despite the AI-cloud surge, total revenue for the full year fell 27% to $137.23 million. Bitcoin mining, once IREN's core business, is now clearly taking a back seat — a notable reversal, since mining revenue had been the company's dominant income stream until the AI-cloud segment overtook it.

Analyst Reaction

Citizens analyst Gregory Miller noted that IREN's "underlying AI cloud business continues to gain momentum." He maintained his $80 price target, implying roughly 79% upside from Friday's close.

Bernstein's Gautam Chhugani was similarly positive, arguing that IREN has "aggressively executed across its cloud business." He kept his $100 price target and Buy rating, implying about 124% upside.

H.C. Wainwright's Mike Colonnese reiterated a Buy rating, pointing to improving pricing power for GPU capacity as a key driver. Cantor Fitzgerald held its "overweight" rating with a $99 price target as of August 28, while Compass Point kept a "buy" rating with an $85 target on the same date. Citigroup reaffirmed a "market outperform" rating.

Weiss Ratings moved the other way, downgrading IREN from "sell (d+)" to "sell (d)" this week.

Risks Remain

IREN's balance sheet carries a debt-to-equity ratio of 1.80, and the company reported a record net loss in its latest fiscal year. Critics have flagged that spending on AI compute by "neocloud" companies may be running ahead of returns. IREN also competes in an increasingly crowded field of so-called neocloud GPU providers, where rivals are racing to add capacity backed by similar debt-funded models — meaning pricing power for GPU rental could tighten if supply outpaces demand.

The stock trades with a beta of 4.28 and a PE ratio of -19.09, reflecting its high-risk, high-growth profile. IREN's 50-day moving average sits at $40.11 and its 200-day moving average at $45.43, leaving Friday's close just below the longer-term trend line.

Outlook

The company says it has secured $2.8 billion in total contract value and has sold out its GPU capacity for all of calendar year 2026. IREN expects to reach more than $4 billion in annual recurring revenue by year-end. Whether the company can hit that target — and service the roughly 9% cost of its new debt — will likely be central to how the next earnings cycle is judged.

Of 21 analysts covering the stock, 15 rate it a Buy, three a Hold, and two a Sell, producing a consensus "Moderate Buy" rating with an average price target of $75.67 — implying roughly 69% upside.