Bernstein cuts IREN price target to $100 from $125 as company scales back Bitcoin mining for AI cloud expansion

Bernstein reduced IREN's price target from $125 to $100 per share while keeping an Outperform rating, citing Bitcoin mining scale-down and share dilution from recent equity issuances rather than deterioration in AI business prospects.

IREN has contracted 77,000 of its 150,000 GPUs to Microsoft under a five-year deal worth roughly $1.94 billion in annualized revenue, with remaining capacity generating $400 million in contracts already signed as of February for on-demand cloud customers.

Bernstein projects IREN's AI cloud revenue will reach $2.6 billion in 2027 and $6 billion by 2030 when operating 275,000 GPUs, with adjusted EBITDA margins forecast to stabilize near 82 percent, implying nearly $5 billion in earnings before interest, taxes, depreciation, and amortization by end of decade.

At the current price of $43.78, Bernstein's $100 price target represents approximately 128% upside for investors.