Bitcoin Miner IREN’s 47% Slide Flagged as a Buying Opportunity by B. Riley

Core Viewpoint - IREN's recent stock decline of 47% from its 52-week high is attributed to weak AI sentiment rather than a fundamental shift in its business model, presenting a potential buying opportunity for investors [1][7]. Stock Performance - IREN's stock was down 8.2% in early trading, priced at $36.82, while it had previously rallied 47% from October 22 to November 5, outperforming its HPC peers [2][3]. - The average decline for miners during the same period was about 25%, with CoreWeave and Nebius down 31% and 25%, respectively [1]. Funding and Capital Structure - IREN faces a funding gap of approximately $2.7 billion against planned HPC capital expenditures of about $11.6 billion, which includes significant investments in GPUs [4]. - The company has secured around $8.85 billion in capital, including a $1.94 billion prepayment from Microsoft and other financing arrangements [5]. - Recent balance sheet activities include the issuance of new convertible senior notes and a direct offering of ordinary shares, enhancing the company's capital position [6]. Market Sentiment and Investment Opportunity - The analysts suggest that the volatility in IREN's stock price indicates it tends to overshoot in both directions, making it a potential entry point for investors willing to accept sector volatility [3]. - The recent pullback is seen as a chance for investors to accumulate shares ahead of a possible rebound in AI enthusiasm and ongoing HPC expansion [7].