IREN stock price remains under pressure this month as Bitcoin retreats and Neoclouds shares dip. It retreated to $42.93 on Wednesday, down by 44% from its highest level in November last year. So, is IREN a good stock to buy today?
IREN stock has slipped despite strong growth potential
IREN stock price has remained under pressure in the past few months, making it one of the top laggards in Wall Street. It has dropped by over 44% from its all-time high, even as the Dow Jones and Nasdaq 100 indices soared to a record high.
The ongoing crash is mostly because of its Bitcoin mining business, which has remained under pressure in the past few months. Bitcoin price has slumped from a record high of over $126,300 in October last year to the current $68,000. Its mining revenue normally drops sharply whenever the coin is not doing well.
IREN, despite its large investments in the AI industry, still makes most of its money in Bitcoin mining. A report released last week showed that its Bitcoin mining revenue dropped to $167.4 million in the quarter ending on December 31st from $233 million in the same period in 2024. Its cloud revenue, on the other hand, made over $17.3 million in revenue, up from $7.3 million.
The report also showed that its losses soared during the quarter. It moved from a profit of over $384 million in 2024 to a net loss of $155 million. Some of this loss was the unrealized loss on financial instruments of about $107 million. The company also announced a $111.8 million debt conversion expense.
Still, on the positive side, the company announced that it secured a $3.6 billion GPU financing deal for the Microsoft contract. It also revealed that it was in active discussions with multiple companies and that it will hit $3.4 billion ARR this year.
While it did not reveal the names, some of the potential customers are firms like Amazon, Google, Oracle, and Meta Platforms. In their recent earnings report, these companies pledged to invest over $660 billion in the AI industry this year. Some of them will likely leverage the services of other companies like Nebius, CoreWeave, Bitfarms, and Terawulf.
IREN share price technical analysis
The daily timeframe chart shows that the IREN stock price peaked at $76 in November last year as it announced the $9.7 billion deal with Microsoft. It then crashed to a low of $33.60 in December.
The stock then rebounded to a high of $63.30 in January. It then retreated to the current $42.93. It remains below the 50-day Exponential Moving Average (EMA) and the 38.2% Fibonacci Retracement level at $49.
There are signs that the stock has formed an inverted head-and-shoulders pattern, which is a common bullish reversal sign. Therefore, the stock will likely rebound as bulls target the key resistance level at $60. A move above the year-to-date high of $63.30 will point to more gains, potentially to the all-time high of $76.45.
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