IREN stock jumps after MSFT deal, analyst ups price target

**IREN Ltd. Stock Price Surges After Major Data Center Partnership with Microsoft**

IREN Ltd., a leading company in the Bitcoin (BTC) mining and data center industry, has seen its stock price continue a strong surge this month after securing a significant data center partnership with Microsoft. The stock jumped to a record high of $75.30, soaring over 1,200% from its lowest level earlier this year. This remarkable increase has pushed IREN’s market capitalization to over $19 billion.

The surge comes on the heels of a $9.7 billion, five-year deal signed with Microsoft. The agreement, set to begin implementation in 2026, includes a 20% prepayment and is estimated to deliver an EBITDA margin of 85%. This deal marks a significant validation for IREN, which recently pivoted to the AI colocation industry.

In its most recent financial results, IREN’s AI colocation business generated only $7 million in the fourth quarter. However, the partnership with Microsoft is expected to attract other potential customers, including major players like Oracle, Meta Platforms, OpenAI, Amazon, and Anthropic. Notably, OpenAI has already entered into a similar agreement with CoreWeave, while Meta Platforms partnered with Nebius.

Wall Street analysts remain optimistic about IREN’s future performance. According to Yahoo Finance data, the average revenue estimate for IREN, which will be announced this Thursday, is $241 million—a staggering 344% annual increase. Projections indicate $257 million in revenue for the second quarter and $1.2 billion for the current financial year. These figures represent substantial growth compared to the $512 million generated in the previous fiscal year.

Importantly, unlike competitors such as CoreWeave, IREN’s business is already profitable. Annual earnings per share are expected to rise to $1.60, up from 35 cents last year. Analysts believe there is additional upside potential for IREN’s stock price. Darren Aftahi of Roth MKM recently raised his price target from $82 to $94, implying a 55% gain from the current level. Similarly, Gautam Chugani, an analyst at Bernstein, projects the stock will climb to $75, reflecting a 24% increase.

**IREN Stock Price Technical Analysis**

Looking at the daily timeframe chart, IREN’s share price has been on a strong uptrend throughout the year, climbing from a low of $5 in April to a high of $75 this week. The stock has consistently remained above all moving averages, indicating bullish dominance.

However, there are some technical concerns. The stock appears to have formed a double-top pattern around $74, with a neckline at $48. Additionally, the MACD indicator shows a bearish divergence, suggesting weakening momentum. This could lead to a strong bearish breakdown as investors potentially “sell the news” when IREN releases its upcoming financial results later this week.

Investors should watch closely for signs of a retreat in the stock price following these important developments.

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*Stay tuned for updates on IREN Ltd.’s financial results and market reaction.*
https://bitcoinethereumnews.com/tech/iren-stock-jumps-after-msft-deal-analyst-ups-price-target/