23 February 2026 | 4:18PM EST Equity Research GLOBAL TECHNOLOGY Global Data center Supply/Demand update: Tight conditions likely to extend through 2026 + Read-across for Power, Hardware, and Industrial Tech / Engineering Since the October update of our data center supply/demand model, where we updated for 2Q25, fundamental supply/demand indicators remain healthy in the medium term, occupancy rates continue at elevated levels for outsourced data center providers across key global markets, and our checks cont ...

Group 1 - IREN Limited (NASDAQ:IREN) has appointed John Gross as Chief Innovation Officer to oversee engineering standards and thermal architecture for upcoming data centers, focusing on high-performance computing [1][2][3] - Gross brings over 20 years of experience in data center design, particularly in high-density racks and liquid cooling, and is involved in setting global standards for advanced cooling technologies [2] - The company is transitioning to AI infrastructure and has secured significant partnerships, including a $9.7 billion deal with Microsoft, indicating strong growth potential in the AI cloud services sector [3] Group 2 - The management highlighted that as AI workloads increase, efficient cooling becomes a competitive advantage, which the new role of Chief Innovation Officer aims to enhance [2] - IREN Limited operates data centers powered by renewable energy, specializing in AI cloud services and Bitcoin mining, reflecting a commitment to sustainable technology [3]

Core Viewpoint - IREN Limited (NASDAQ:IREN) has been added to the MSCI USA Index, which is expected to enhance its visibility and accessibility to institutional investors and index-tracking funds [2][3]. Group 1: Company Overview - IREN Limited, founded in 2018, operates renewable-energy-powered data centers focused on Bitcoin mining and AI cloud services, with its headquarters in Sydney, Australia [4]. Group 2: MSCI USA Index Inclusion - The inclusion in the MSCI USA Index will take effect after market close on February 27, 2026, and the index tracks approximately 85% of the U.S.'s free float-adjusted market capitalization [2]. - Co-Founder and Co-CEO Daniel Roberts stated that this milestone reflects the scale and liquidity built in the business and will broaden institutional access as the company executes its AI Cloud strategy [3]. Group 3: Analyst Ratings - On February 10, 2026, Canaccord Genuity analyst Joseph Vafi reiterated a Buy rating on IREN Limited with a price target of $70 [3].

Group 1 - The investor has been involved in Bitcoin since 2018, motivated by the belief in digital transactions and its role as a medium of exchange [1] - The investor focuses on equities in technology, energy, and consumer staples, while also recognizing the potential in emerging markets [1] - The investor has experience as an analyst at Crowdsense, which specializes in identifying events that impact specific assets for investors [1] Group 2 - The investor aims to bridge communication skills with capital market interests by writing for Seeking Alpha [1] - The investor believes in contributing to the investment community by helping others identify value or risks in closely followed assets [1]

Core Viewpoint - The article emphasizes the importance of identifying high-yield investment opportunities for individual investors, aiming to simplify complex financial concepts for better portfolio management [1]. Group 1 - The focus is on uncovering investment opportunities that yield high returns for individual investors [1]. - The background of the author in professional prop trading is highlighted, indicating a strong foundation in financial markets [1]. - The goal is to provide clear and actionable insights to help investors achieve better returns [1].

Group 1 - Cantor Fitzgerald has significantly increased its stake in IREN Ltd, purchasing an additional 3,333,423 shares worth nearly $171.96 million, which raised its total holding by approximately $124.65 million [1][2] - IREN now constitutes about 1.99% of Cantor Fitzgerald's reportable assets under management, with the stock trading at $42.04, having lost 40% of its value since mid-October last year, but gained over 220% in the past year [2][3] - IREN is transitioning from Bitcoin mining to AI cloud services, reflecting a strategic shift towards AI infrastructure, with data centers located across the U.S. and Canada [2][3] Group 2 - The stock's growth is attributed to market confidence in IREN's transition to AI infrastructure, with increasing institutional capital flowing into the AI market due to high demand for GPU-powered cloud services [3] - Analysts highlight IREN's multi-year cloud contracts, expansion plans, and strategic partnerships as key factors for its long-term growth potential [3][4] - Despite the bullish sentiment from Cantor Fitzgerald, some analysts express concerns regarding IREN's reliance on large hyperscaler contracts, which may pose concentration risks [4]

Group 1 - IREN Ltd (NASDAQ:IREN) is recommended as a strong buy for the next 6 months, with a price target of $105 set by Compass Point [1] - The company has expanded its secured power base to 4.5GW, adding 1.6GW from its Oklahoma campus, and is advancing deployments in Canada and Texas [2] - Citizens has reiterated a Market Outperform rating on IREN Ltd with an $80 price target, reflecting confidence in the company's long-term prospects [2][3] Group 2 - IREN Ltd is pivoting from Bitcoin mining to providing high-quality data center capacity, with over 2GW of capacity available for contracts with hyperscalers [3] - The company secured $3.6 billion in GPU financing for its Microsoft contract, which, along with Microsoft's $1.9 billion prepayment, will cover 95% of GPU-related capital expenditures for a 140,000-GPU expansion [4] - This expansion is projected to generate $3.4 billion in annual recurring revenue [4] Group 3 - IREN operates data centers powered by renewable energy, focusing on high-performance computing for AI cloud services and Bitcoin mining, with a recent strategic shift towards AI infrastructure [5] - The company has established a significant partnership with Microsoft valued at $9.7 billion [5]

Core Insights - Cantor Fitzgerald, L. P. acquired 3,333,423 additional shares of IREN, with an estimated transaction value of $171.96 million, reflecting a significant increase in their investment in the company [2][7] - The quarter-end value of IREN's position increased by $124.65 million, driven by both new purchases and price changes [2] - IREN shares were priced at $40.97 as of February 17, 2026, representing a 215.9% increase over the prior year, significantly outperforming the S&P 500 by 203.0 percentage points [8] Company Overview - IREN Limited is a data center operator and Bitcoin miner with a market capitalization of $13.59 billion, generating revenue through digital asset mining and data center operations [6][4] - The company operates vertically integrated data centers and owns computing hardware, primarily generating revenue from Bitcoin mining and data center services [9] Investment Implications - Cantor Fitzgerald's aggressive increase in its stake in IREN indicates a strategic shift in its neo cloud investments, having sold 86% of its holdings in CoreWeave [10] - IREN now represents 1.99% of Cantor Fitzgerald's 13F AUM, with top holdings including NVDA, MSTR, and ORCL [8] - The company has a key weakness due to its heavy dependence on a contract with Microsoft, which poses a risk if the contract were to fall through [11]

Core Insights - IREN exceeded bottom-line estimates for Q2'26 but missed revenue expectations, resulting in a sell-off of shares that have not yet recovered [1] Group 1: Financial Performance - IREN performed well in executing its growth plans despite the revenue miss [1]

Core Insights - IREN is perceived as a narrative stock, primarily associated with AI cloud developments, but lacks immediate validation in its performance [1] Group 1: Company Overview - IREN is often discussed in the context of AI and cloud technology, indicating a speculative interest among investors [1] Group 2: Investment Philosophy - The investment approach emphasizes value investing, focusing on long-term value creation and understanding resilient business models [1] - The analysis includes a disciplined, fundamentals-first methodology, highlighting the importance of identifying mispriced quality companies [1]