Iris Energy shares rise around 4.5% as AI cloud revenue soars and new long-term deals lift sentiment

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Iris energy rises 4.45% today

Highlights

Iris Energy completed its move from Bitcoin mining to AI infrastructure, generating $128.8 million in AI cloud revenue for the year ending June 30.
The company secured about $4 billion in 2026 contracted revenue, led by a five-year, $9.7 billion deal with Microsoft, but booked a $450.4 million write-down and a net loss of over $700 million.
Shares of Iris Energy trade below key moving averages with indicators showing weak momentum, and the stock is expected to range between $35.13 to $41.79 over the next five sessions.

AI pivot and major cloud deals offset by steep losses and write-downs

Iris Energy has completed a major pivot from Bitcoin mining to AI infrastructure and cloud services. For the fiscal year ending June 30, the company reported $128.8 million in AI cloud revenue, an eightfold increase over the previous year. IREN secured about $4 billion in contracted revenue for 2026 capacity, highlighted by a five-year, $9.7 billion agreement with Microsoft and $6.5 billion in GPU financing. These actions were accompanied by a $450.4 million write-down of obsolete mining equipment and a record net loss of over $700 million for the year.

Anton Kharitonov, expert at Traders Union, notes that Iris Energy's recent rally barely shifts the entrenched negative trend. The company’s pivot to AI infrastructure has produced headline growth, but the massive net loss and asset write-down suggest underlying instability. Technical levels remain bearish, with price below all major moving averages and momentum signals negative. Intraday strength appears fleeting against the dominant sellers. "Beneath the surface, risks far outweigh the optimism implied by today's price action."

Viktoras Karapetjanc, expert at Traders Union, sees Iris Energy’s strategic shift as transformative for the business. He highlights the long-term Microsoft deal and $4 billion in contracted revenue as strong fundamental tailwinds. Cloud revenue growth and institutional partnerships support a constructive outlook. "I expect further upside potential as platform adoption accelerates and the bullish structure recovers — this market offers multiple attractive setups going forward."

Sholanke Dele, market strategist, points to weak sentiment and technical pressure around Iris Energy. He observes that investor enthusiasm is undermined by a substantial net loss and asset write-downs. Macro risks and persistent negative momentum reinforce a defensive stance. "I remain cautious, as seller dominance and volatility could quickly erode recent gains."

Bearish trend persists as price strength clashes with weak momentum

Iris Energy is trading below the 20-day, 50-day, and 200-day moving averages at $40.75, $40.77, and $45.74, respectively, reflecting ongoing pressure from sellers in the short, medium, and long term. The immediate technical ceiling is the Ichimoku Kijun at $39.06, with near-term support at the recent high of $37.6; the prevailing trend remains bearish as confirmed by the alignment of the moving averages. Momentum signals are weak, with the MACD in sell territory and the ADX indicating a lack of a strong trend. The RSI is at 43.02 and also forecasts a sell, while the Stochastic RSI, CCI, and BBP all indicate oversold conditions, suggesting strong seller dominance intraday. The stock opened with a downside gap of about $1.02 (a 2.77% drop), rose $1.64 (up 4.45%) to $38.46, and is now trading near the session high. Intraday volatility stands at 5.15%. The tone in the session has shifted to show strength toward the highs, contradicting persistent negative momentum readings and creating a notable divergence between price action and underlying momentum.

Earlier, analysts noted that despite Iris Energy's transition to AI cloud infrastructure and major contract wins, persistent technical and market headwinds continued to weigh on the stock. The latest analysis adds a new dimension by highlighting a divergence between intraday price strength and underlying negative momentum, with traders advised to watch for a move above $39.06 or a drop below $37.6 as key signals for the next direction.

Source of Data: IREN Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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