IREN stock hits resistance after $2.8bn cloud contracts
IREN shares rose after the company signed $2.8bn in multi-year cloud contracts and raised AI ARR guidance above $4bn, with about 85% of the target under contract.
IREN Ltd. reported on July 20 that it signed $2.8 billion of multi-year cloud services contracts, expanding its bare-metal and managed cloud offerings to include hyperscalers, frontier AI labs and enterprise clients.
Named customers include Microsoft, Nvidia, Figure AI, Perplexity and Together AI. The contracts combine large-volume and recurring workloads tied to GPU infrastructure.
IREN raised its AI annual recurring revenue guidance from a prior $3.7 billion estimate to more than $4 billion for the year and reported about 85% of the upgraded target is under contract.
About 45% of the GPU-related capital expenditure linked to these contracts will be covered by customer prepayments, reducing near-term external funding needs.
Management noted the deals bolster recurring cloud revenue and support converting a secured 5-gigawatt power pipeline into contracted demand.
Shares rose on July 20, approaching the 20-day moving average and a resistance level near $43. The stock remained about 40% below a recent peak.
Analysts maintain a consensus rating of Moderate Buy with a mean 12-month price target near $81.
IREN operates in Australia as a vertically integrated data-center and AI cloud provider building power-dense facilities to host GPU-based systems. The model requires large upfront capital to buy GPUs and construct facilities. Contract value, ARR visibility and the share of capex funded by customers are commonly tracked measures for companies in the sector.
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