IREN stock has fallen into a bear market despite continued demand for artificial intelligence (AI) computing. The trading price was $35.7, a significant drop from its all-time high.
IREN stock plummets as large orders are slow to arrive
Bitcoin mining company IREN, which has turned into a leading provider of AI data center services, has plummeted this year, wiping out billions of dollars in value in its decline.
The main reason is that the company hasn’t announced any major contracts this year. The last major deal was announced last November when it announced a partnership with Microsoft. The deal was worth more than $9.7 billion.
Since then, other large companies have also received large orders from some of the biggest hyperscalers. For example, Nebius reached a $27 billion deal with Meta Platforms in March.
Similarly, CoreWeave signed a similar deal with Meta Platforms worth $14.2 billion, and Google signed a large deal with TeraWulf.
The industry is also becoming more competitive, with companies such as Bitfarms, Riot Platforms, and MARA Holdings also entering the industry. This is one of the main reasons why the company’s short interest has jumped to 16%. It also explains why other similar stocks have fallen over the past few months.
At the same time, the industry has become highly capital-intensive, with companies spending billions of dollars to buy GPUs and lease space.
In a recent statement, the company signed a deal to purchase more than 50,000 GPUs from NVIDIA, bringing its total inventory to 150,000. The company expects these GPUs to generate more than $3.7 billion in revenue at the end of the year.
The company raises this money from customer advances, convertible debt, and GPU financing. At the same time, IREN established an at-the-market (ATM) equity program worth approximately $6 billion. ATMs allow companies to sell stock and raise cash, diluting the value of existing investors.
Recent financial results revealed that operating revenue decreased from $240 million to $184.7 million in the second quarter of 2026 as IREN’s business pivoted from Bitcoin mining to AI data centers.
Analysts believe Microsoft’s order will continue the company’s revenue growth in the short term. IREN’s revenue this year is estimated to be $1.01 billion, up 97% from last year. Next year, it will earn $2.95 billion.
IREN stock price prediction: technical analysis
The daily chart shows that IREN’s stock price has plummeted over the past few months, rising from a high of $76.50 last November to a current high of $35.
On the bright side, it has formed a large double bottom pattern at $32.90 and a neckline at the January 28 high of $63.75. A double bottom is one of the most common bullish reversal signs in technical analysis.
Therefore, the stock price could rebound in the coming weeks or months and reach the psychological level of $46, the February 25th high.
Conversely, a decline below the double bottom point of $32 would invalidate the bullish outlook and suggest further downside to the 78.6% Fibonacci retracement level of $20, which is about 42% below current levels.
