IREN stock jumps nearly 6% as AI data center expansion in Texas and Canada sparks interest

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Iren surges 5.68% today to $28.09

Highlights

IREN is moving from Bitcoin mining to AI data center expansion, with operations in Texas and Canada and a debt-free balance sheet.
AI data center capacity is fully funded with contracted revenue totaling $4 billion annualized for 2026, but the company posted a net loss of $702.6 million for the year.
Shares of IREN remain under bearish technical pressure, with persistent negative momentum and high probability of moving in the $25.69 to $30.49 range in the next five days.

AI-focused revenue growth amid mixed investor positioning

IREN has shifted from Bitcoin mining to expanding its AI data center operations in Texas and Canada, supported by a debt-free balance sheet and customer prepayments covering significant GPU costs. The company reported that its AI data center capacity is fully funded and contracted into 2026 and 2027, with $4 billion in annualized contracted revenue for 2026, yet still posted a net loss of $702.6 million for the fiscal year. Investor flows showed Capstone Capital Management reducing its holding by 87.8% in the third quarter and Secure Asset Management LLC starting a new $2.82 million position.

Anton Kharitonov, expert at Traders Union, sees IREN's 5.68% bounce as unstable despite headline strength from AI data center expansion. He points to persistent net losses, heavy insider selling, and technical momentum firmly against buyers. The analyst notes the stock is far from key moving averages, showing sellers retain control. Even large contracted revenue and cash reserves have not shifted the negative narrative. "Until technicals and earnings confirm a turnaround, I remain cautious and see more downside risk for IREN," Kharitonov says.

Viktoras Karapetjanc, expert at Traders Union, highlights IREN’s transition to AI data centers as a long-term growth driver. He believes the debt-free position and full funding through prepayments enhance operational flexibility. The expert notes that $4 billion in annualized contracted revenue by 2026 signals massive future cash flow. "With robust customer commitments and a forward-looking strategy, I see significant upside potential as the bullish structure remains intact," Karapetjanc affirms.

Jainam Mehta, market strategist, believes IREN’s price action warns of ongoing volatility. He notes deeply oversold signals and negative momentum could produce a contrarian bounce if resistance breaks. Yet, the downside probability remains high unless $28.32 is cleared cleanly. "Traders may consider tactical entries only above the ceiling, while strict stop-losses are warranted below $26.45," Mehta advises.

Bearish momentum intensifies as technical levels constrain gains

IREN remains firmly below its 20-day ($37.36), 50-day ($40.49), and 200-day ($45.24) moving averages, signaling persistent technical pressure from sellers across all timeframes. The near-term ceiling stands at $28.32 and the floor at $26.45, with the Ichimoku Kijun at $37.47 reinforcing a bearish trend context. Momentum signals are negative as MACD and ADX indicate a sell bias. RSI is deeply oversold at 23.49, while Stochastic RSI and CCI also register in oversold territory. Bull/Bear Power is negative at -5.16, showing that sellers dominate intraday action, and the Awesome Oscillator forecasts continued weakness. Although the stock gained $1.51 or 5.68% and is trading near the session high after an upside gap, negative momentum signals present significant divergence.

Earlier, analysts noted that IREN remained under sustained selling pressure due to funding concerns and technical weakness, despite attempts to rebound on announcements of AI data center expansion. The latest update confirms the persistent bearish trend, with downside risk prevailing as negative momentum signals point to a heightened probability of further declines in the near term.

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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