IREN Limited shares rallied sharply on February 24, 2026, closing at $45.45 after jumping 7.29%, extending a volatile but upward trend as the former Bitcoin miner-turned-AI cloud infrastructure provider benefits from major hyperscaler deals and institutional interest, even after a recent earnings miss highlighted execution challenges in its pivot.

IREN Limited
IREN Limited

As of February 24, 2026, IREN (NASDAQ: IREN) traded in a session range of $40.83 to $45.68 with volume exceeding 36 million shares—below recent averages but still robust amid the rebound. The stock has climbed significantly in recent sessions, recovering from dips following its February 5 Q2 fiscal 2026 results, and now sits well above early-2026 levels while remaining below its 52-week high near $76-77. Year-to-date performance reflects strong momentum in the AI infrastructure theme, with the market capitalization approaching $15 billion.

The February 24 advance followed heavy pre-earnings positioning and post-miss digestion, with analysts and investors focusing on forward visibility from multi-year contracts rather than near-term quarterly shortfalls. In its Q2 FY26 results released February 5, IREN reported revenue of $184.69 million—down 23.1% year-over-year and missing consensus estimates of around $229.64 million—amid declining Bitcoin mining volumes and prices during the period. Adjusted EPS came in at -$0.44 to -$0.52 (depending on source), wider than the -$0.07 to -$0.18 expected, contributing to a negative return on equity of about 10% and ongoing net losses.

Despite the miss, management emphasized progress in its strategic shift toward AI cloud services. The company highlighted secured multi-year GPU cloud contracts, including a landmark deal with Microsoft that underpins ambitions for $3.4 billion in annualized recurring revenue (ARR) by the end of 2026. Additional agreements with customers like Together AI, Fluidstack, and Fireworks AI bolster the pipeline, with GPU financing and purchases (including from Dell) supporting deployment.

IREN appointed John Gross as Chief Innovation Officer on February 17, 2026, in a new role to oversee engineering standards, thermal architecture, and commissioning for next-generation data centers. The move aligns with expansion at sites in British Columbia, Childress, Texas, and the Sweetwater Hub, where the company leverages sustainable power sources to attract high-performance computing tenants.

Analysts remain predominantly bullish on the long-term story. Consensus among 13-18 covering firms rates IREN a Moderate Buy to Buy, with average 12-month price targets around $71.69 to $79.31—implying 58-75% upside from current levels. High targets reach $125, reflecting optimism around AI tailwinds, while some caution persists on profitability timing and execution risks. Seeking Alpha contributors noted execution hurdles and uncertain near-term profitability offset by AI momentum and partnerships, maintaining Hold views in some cases.

The company's transition from pure Bitcoin mining to diversified digital infrastructure—balancing legacy mining with AI cloud hosting—positions it amid surging data center demand. IREN's sustainable energy model provides a competitive edge in power-intensive operations, with institutional inflows (including Cantor Fitzgerald adding shares) supporting liquidity and confidence.

Upcoming catalysts include the next earnings report for Q3 FY26, expected around May 13, 2026, where updates on AI cloud ARR progress, GPU deployments, and Bitcoin mining trends will be scrutinized. Management's guidance for significant ARR growth by end-2026 could fuel further upside if milestones are met; delays in capacity ramp or softening crypto conditions might introduce volatility.

IREN navigates a high-growth but high-risk phase in the evolving digital asset and AI landscape. Its hyperscaler partnerships, infrastructure scale, and sustainable focus offer substantial potential as AI infrastructure spending accelerates. Investors betting on the pivot see current levels as attractive despite recent misses, with the stock's trajectory tied to execution on AI contracts and broader sector tailwinds.