Shares of bitcoin miner IREN have fallen 47% from their 52-week high reached on November 5. Despite the sharp pullback, investment bank B. Riley maintained its buy rating and $74 price target. Analysts believe the decline offers a potential entry point for investors.
According to the report, IREN has underperformed both bitcoin mining peers and high-performance computing companies. Mining stocks dropped about 25% on average during the same period. GPU cloud firms also declined, though less sharply than IREN.
B. Riley analysts described the recent move as a reset driven by weaker AI sentiment. They emphasized that the company’s fundamentals remain intact. The sell-off reflects volatility in AI-linked equities rather than a breakdown in business execution.
Stock Volatility and Market Behavior
IREN shares have shown strong volatility in recent months. Between October 22 and November 5, the stock surged 47%. During that time, most HPC peers posted modest gains or losses.
Analysts argue this pattern shows the stock often overshoots in both directions. As a result, AI-related drawdowns may create buying opportunities. This approach suits investors comfortable with sector volatility and long-term cycles.
Capital Structure and HPC Expansion
The report also addressed IREN’s funding position. The company plans roughly $11.6 billion in HPC capital expenditures. A significant portion is tied to large-scale GPU deployments and a strategic partnership with Microsoft.
B. Riley estimates that about $8.85 billion in capital is already secured. This includes Microsoft prepayments, external financing, and cash reserves. Recent convertible note issuances and equity offerings further strengthened the balance sheet.
Taken together, the bank views the 47% decline as sentiment-driven. Analysts do not see a structural change in IREN’s GPU strategy. B. Riley suggests the pullback may allow investors to build positions ahead of a potential recovery in AI market enthusiasm and continued HPC growth.
