Bitcoin Miner IREN’s 47% Slide Flagged as a Buying Opportunity by B. Riley
B. Riley maintained its buy rating on IREN despite a 47% stock drop, viewing it as a sentiment-driven entry point.Summary
Investment bank B. Riley affirmed its 'buy' rating and $74 price target for Bitcoin miner IREN, even after the stock plummeted 47% from its 52-week high, significantly underperforming peers. Analysts Nick Giles and Fedor Shabalin characterized the sharp decline as a sentiment-driven reset in the volatile AI proxy sector, rather than a fundamental issue, noting the stock tends to overshoot in both directions.
The report highlighted IREN's substantial planned capital expenditures for GPU build-outs, particularly concerning its Microsoft-tied projects, but confirmed that the company has secured sufficient funding, including Microsoft's prepayment and recent convertible note issuances, to cover the estimated $2.7 billion gap between available capital and planned capex.
B. Riley concluded that the 47% pullback is a result of weak AI sentiment in a cyclical market segment, not a structural problem with the Microsoft-centric GPU expansion, presenting the slide as an opportunity for investors to accumulate shares ahead of a potential rebound in AI enthusiasm.
(Source：CoinDesk)