IREN: Big Contract Catalyst

Stone Fox CapitalInvesting Group LeaderFollow5ShareSavePlay(8min)CommentsSummaryIREN Limited is positioned for strong AI data center growth, anchored by a $9.7 billion Microsoft contract.Despite sector volatility and market skepticism, IREN forecasts $3.4 billion ARR by 2026, leveraging only 16% of its data center power pipeline.A recent $4 billion capital raise strengthens IREN’s balance sheet, enabling GPU procurement and further data center buildout.The stock trades at a very compelling valuation of only ~5x 2027 adjusted EBITDA, but operational execution and debt management are critical risks to monitor. pingingz/iStock via Getty Images The AI data center space remains under major pressure with IREN Ltd. (IREN) hitting new multi-month lows. The company forecasts explosive growth due to major contracts with hyperscalers, but the market is suddenly doubting these deals. My investment thesis is This article was written byStone Fox Capital54.28K FollowersFollowStone Fox Capital is an RIA from Oklahoma. Mark Holder is a CPA with degrees in Accounting and Finance. He is also Series 65 licensed and has 30 years of investing experience, including 15 years as a portfolio manager. Mark leads the investing group Out Fox The Street where he shares stock picks and deep research to help readers uncover potential multibaggers while managing portfolio risk via diversification. Features include various model portfolios, stock picks with identifiable catalysts, daily updates, real-time alerts, and access to community chat and direct chat with Mark for questions. Learn more.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in IREN over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock, you should do your own research and reach your own conclusion or consult a financial advisor. Investing includes risks, including loss of principal.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.