Prabhjote Gill
4 min read
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Iren said it expects capital expenditure to be between $25 billion and $30 billion in fiscal 2027.
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Management said it has $14 billion of funding in place and is targeting roughly $8 billion in additional GPU financing and prepayments.
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IREN is in “late-stage discussions” for a significant portion of its 2027 capacity, but those discussions have not yet produced contracts.
Iren (IREN) shares dropped in midday trade on Friday, and appear on track to end August in the red, after the company’s fourth quarter results came in below Wall Street’s expectations.
However, according to H.C. Wainwright, the selloff might be a “buying opportunity.” The firm said Iren’s earnings call was “generally upbeat.” It added that pricing is moving in Iren’s favor, with the company’s $4 billion annual recurring revenue outlook for 2026 now fully contracted. The firm reiterated a ‘Buy’ rating on the shares with a price target of $90.
IREN stock fell 12.5% by Friday afternoon and was among the top trending tickers on Stocktwits at the time of writing. The shares were on track to erase their August gains, marking the first three-month losing streak since August through October in 2023.
Why Is IREN Stock Falling?
Iren said it expects capital expenditure to be between $25 billion and $30 billion in fiscal 2027, including spending on data centers and GPUs. Management said it has $14 billion in funding in place, with some coming from data-center financing, operating cash flow, and corporate sources.
However, a gap of around $8 billion still remains. During the earnings call, CEO Daniel Roberts said there were “lots of preliminary conversations” ongoing about financing data centers, but no closed transactions yet.
“The actual CapEx for the year will depend on a range of factors,” he added. Management currently expects GPU and data-center CapEx requirements to rise by 15% to 20%, with revenue expected to eventually outpace those increases.
Roberts stated GPU financing was the “lower-hanging fruit,” adding that finding efficient ways to finance data-center construction would be “the big unlock” for Iren.
IREN Has 2027 Deals In The Pipeline
The CEO also shared that Iren’s 2026 capacity is largely sold out, but the company is now working to secure customers for its next wave of capacity. He said the company is in “late-stage discussions” with customers covering a significant portion of 2027 capacity, while discussions for 2028 have already started. However, those discussions are not yet contracts.
