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IREN shares jump after raising ARR target to $4B
The company also said it secured $2.8 billion in multi year cloud services contracts and plans to deliver 480 MW of capacity this year.
IREN Ltd (NASDAQ:IREN) snapped a seven day losing streak Monday, rallying as much as 21.0% in intraday trading to $40.77, after raising its annualized run rate revenue, ARR, target to $4 billion from $3.7 billion, according to Yahoo Finance.
The company attributed the outlook increase to signing $2.8 billion of multi year cloud services contracts with AI developers, including Microsoft, Nvidia, Perplexity, Figure AI, Together AI, Fluidstack, Fireworks AI, Fal AI, Hume AI, and another unnamed leading AI developer, spanning both bare metal and managed cloud services.
IREN said it is expanding AI cloud capacity to deliver 480 MW of capacity in 2026 and reach 1.2 GW by next year. It added that demand from hyperscalers, enterprises, AI developers, and frontier labs continues to exceed its available and planned capacity.
The firm also pointed to contracting terms, saying contracted pricing strengthened and that customer prepayments represent about 45.0% of associated GPU capital expenditure, which it said reduces IREN’s net funding requirement for those deployments. Yahoo Finance also noted that, per Insider Monkey data, 53 hedge funds held stakes as of the first quarter, up from 36 in the prior quarter, though combined holdings fell 3.6% to $1.61 billion.
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