IREN Limited Jumps 208% Year to Date: Buy, Sell or Hold the Stock?

Core Insights - IREN Limited's shares have surged 207.5% year to date, significantly outperforming the Zacks Finance sector's return of 12% and the Zacks Financial Miscellaneous Services industry's return of 3.3% [1][8] - The company has shown strong revenue growth, particularly in bitcoin mining and AI Cloud services, indicating robust operational performance [2][3] Financial Performance - IREN's revenues increased by 29.4% sequentially to $187.3 million in the fourth quarter of fiscal 2025, with bitcoin revenues rising 27.7% sequentially to $180.3 million [2][8] - The company mined 1,825 bitcoins in the fourth quarter, achieving an average revenue of $98.8 per bitcoin mined [2] - AI Cloud services revenues nearly doubled to $7 million in the fourth quarter, up from $3.6 million in the previous quarter [3][8] Growth Prospects - IREN is on track to achieve $1.25 billion in annualized revenues by December 2025, with approximately $1 billion from bitcoin mining and $200-$250 million from AI Cloud [12] - The company plans to scale its GPU capacity from 1.9k to 10.9k in the coming months, including various models from NVIDIA [12][13] - IREN has secured financing for GPU purchases and is expanding its data center capabilities, including a new liquid-cooled data center [15][14] Market Position - IREN Limited is recognized as one of the world's largest and lowest-cost bitcoin miners, achieving a 50 EH/s installed hashrate target [11] - The company operates 810 MW of data centers and has contracted grid-connected power of 2,910 MW, reflecting over 35% growth [14] Valuation and Earnings Estimates - The Zacks Consensus Estimate for first-quarter fiscal 2026 earnings is 18 cents, down 28% over the past 30 days, with revenues expected at $236.7 million [16] - For fiscal 2026, the earnings estimate is $1.08 per share, down 6.1% over the past 30 days, with revenues projected to increase by 120.9% from fiscal 2024 [17] - IREN's valuation appears stretched, trading at a forward price/book ratio of 4.29X compared to the industry's 3.59X [18]