Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 15 Jan, 26 | IREN | Buy | USD 52.88 | USD 55.5 | USD 58.5 | 1 day | Closed |
10.74%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
IREN Limited owns and operates bitcoin mining data centers. It also provides high performance computing solutions, including Al cloud services. The company was formerly known as Iris Energy Limited and changed its name to IREN Limited in November 2024. IREN Limited was incorporated in 2018 and is headquartered in Sydney, Australia.
Significant EBITDA Growth: EBITDA increased sharply from USD 17.3 million in Q1 FY25 to USD 662.7 million in Q1 FY26
Strong Revenue Expansion: Total revenue surged from USD 52.8 million in Q1 FY25 to USD 240.3 million in Q1 FY26
Escalation in Power Prices: Average net power prices increased from approximately 3.5 cents per kWh in Q1 FY25 to approximately 4.6 cents per kWh in Q1 FY26
Increase in Cost of Revenue: Cost of revenue rose materially from USD 52.9 million in Q1 FY25 to USD 80.7 million in Q1 FY26
IREN’s investment profile remains exposed to volatility in Bitcoin prices and power costs, alongside execution risk in scaling capital-intensive AI data center infrastructure while a meaningful portion of reported earnings continues to be influenced by non-cash and unrealized gains
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 52.88 | 47.5 | 55.5 | 58.5 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Revenue Growth and Business Scale-Up: During Q1 FY26, IREN delivered a substantial expansion in scale, with total revenue rising to Q1 FY26: USD 240.3 million, compared with Q1 FY25: USD 52.8 million, reflecting the combined impact of higher Bitcoin prices, increased operating hashrate, and incremental AI Cloud Services revenue. This marked improvement highlights the company’s ability to monetize both its mining infrastructure and early-stage AI cloud operations more effectively.
Profitability and Earnings Momentum: The company reported a sharp turnaround in profitability, posting Q1 FY26 net income of USD 384.6 million, compared with a net loss of USD 51.7 million in Q1 FY25. This improvement was driven largely by unrealized gains on financial instruments alongside stronger operational performance. EBITDA expanded significantly to Q1 FY26: USD 662.7 million, versus Q1 FY25: USD 17.3 million, demonstrating operating leverage as capacity utilization improved.
Adjusted Earnings Performance: On an adjusted basis, which excludes significant non-cash and non-recurring items, IREN recorded Q1 FY26 Adjusted EBITDA of USD 91.7 million, up sharply from Q1 FY25 Adjusted EBITDA of USD 2.5 million. This growth reflects improved underlying economics from higher Bitcoin production, better realized prices, and early contributions from AI cloud operations.
Operational Efficiency and Hashrate Expansion: Operationally, the company continued to scale its mining activities, with average operating hashrate increasing materially year-on-year. The expansion of facilities, particularly at Childress, supported higher Bitcoin output, reinforcing IREN’s position as a low-cost, large-scale operator with vertically integrated infrastructure.
AI Cloud and Data Center Development: IREN made continued progress in diversifying beyond Bitcoin mining, with AI Cloud Services revenue increasing modestly as GPU deployments expanded. The company advanced construction and conversion of data centers to liquid-cooled GPU infrastructure, laying the groundwork for meaningful AI-driven revenue streams over the medium term.
Capital Structure and Liquidity Position: The balance sheet strengthened during the period, supported by increased cash balances and equity issuance, while maintaining access to convertible debt financing. As of Q1 FY26, the company reported a robust liquidity position, providing flexibility to fund ongoing data center expansions and GPU deployments.
Strategic Positioning and Growth Outlook: Overall, Q1 FY26 represented a step-change quarter for IREN, characterized by strong financial results, accelerating infrastructure development, and tangible progress in executing its AI cloud strategy. The company entered the remainder of FY26 with enhanced scale, improved earnings capacity, and a clearer pathway toward diversified revenue generation.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on REN Limited. (NASDAQ: IREN) at the closing market price of USD 52.88, as on Jan 14, 2026.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Financial Services Industry: Capital Markets
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| IREN IREN Ltd |
0.95 1.79% | 54.03 | - | 12.27 | 5.38 | 1.58 | 6.69 | 27.55 |
| MS Morgan Stanley |
-2.29 1.24% | 182.81 | 16.50 | 13.76 | 2.80 | 1.65 | ||
| CGXYY China Galaxy Securities Co Ltd ADR |
- -% | 31.98 | 144.44 | 86.21 | 4.25 | 7.96 | ||
| SCHW Charles Schwab Corp |
-1.56 1.48% | 103.61 | 22.86 | 17.39 | 6.14 | 4.28 | ||
| GS Goldman Sachs Group Inc |
-7.485 0.79% | 938.85 | 18.44 | 10.60 | 2.83 | 1.16 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on January 15, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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