On January 13, H.C. Wainwright analyst Mike Colonnese changed his rating on Iren Ltd. (NASDAQ: IREN) from Sell to Buy, setting a price target of $80.00. The firm's analysts stated that IREN is entering a transformative year, driven by a $9.7 billion artificial intelligence cloud agreement with Microsoft and a development pipeline exceeding 2 gigawatts.
Colonnese said IREN provides the most leveraged exposure in his coverage, having secured one of the largest AI contracts to date among Bitcoin miners with a blue-chip partner. He noted this is not fully reflected in the current share price.
The Microsoft deal spans five years and is expected to be fully monetized by the end of 2026. Once 200 megawatts of critical IT capacity are deployed at the Childress data center, it is anticipated to generate approximately $1.94 billion in annual recurring revenue.
Analysts highlighted that IREN has more than 2GW of incremental capacity scheduled to be energized by 2027, which supports growth in AI colocation services. The stock's decline of roughly 35% from its early November 2025 peak was described as presenting an attractive opportunity for investors.
"We would not be surprised to see the company announce new AI contracts in 2026 on a portion of this secured capacity," Colonnese said. "Meanwhile, the stock has corrected by ~35% from its all-time highs in early November 2025, presenting an attractive entry point for investors, as we see it."
He also mentioned that Iren Ltd. raised $2.3 billion last month through convertible offerings, adding to a cash position of $1.8 billion as of October 2025's end, to fund the construction of its AI data centers in Childress.
Iren Ltd. operates data centers powered entirely by renewable energy in Australia and Canada.