Cantor Fitzgerald Views Iren (IREN) After-Hours Dip as Buying Opportunity Amid AI Pivot

Core Viewpoint - Iren Limited is transitioning from Bitcoin mining to AI compute, with a significant decline in revenue due to lower Bitcoin prices and operating hash rate, but presents a buying opportunity following a price target reduction by Cantor Fitzgerald [1][2][3]. Financial Performance - In FQ2 2026, Iren Limited reported revenue of $184.7 million, a 23% decrease from the previous quarter, primarily due to lower Bitcoin mining revenue and a reduction in operating hash rate [2]. - The decline in revenue was partially offset by growth in AI cloud revenue, attributed to the commissioning of new GPUs at the Prince George site [2]. Strategic Direction - The company is strategically pivoting towards AI compute, targeting an annualized revenue run rate (ARR) of $3.4 billion by the end of 2026 [3]. - Currently, Iren has approximately $2.3 billion in ARR under contract, including a significant $9.7 billion AI agreement with Microsoft, expected to ramp up progressively throughout the year [3]. - To support this growth, Iren has expanded its secured power capacity to over 4.5 gigawatts, including a new 1.6 gigawatt site in Oklahoma [3]. Business Operations - Iren Limited operates in the vertically integrated data center business in Australia and Canada, owning and operating computing hardware, electrical infrastructure, and data centers [4].