Shares in Iren Limited (IREN) climbed over 5% on Tuesday afternoon after the Australian AI cloud company announced plans to acquire private cloud infrastructure company Mirantis in a $625 million deal. The announcement comes two days before the firm is expected to release its third-quarter fiscal 2026 earnings result.
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IREN has a long & short ETF? Explore IREX & IREZIren Acquires Mirantis to Boost Offering
In a statement, Iren said the buyout will enable it to improve how its computing capacity is deployed, managed, and operated for customers. The company pointed to Mirantis’ expertise in serving more than 1,500 enterprise customers across the world, including through the K0rdent AI platform.
K0rdent, owned by Mirantis, enables large organizations to manage their complex AI infrastructure, including bare metal — or physical computer servers — virtual machines, and tools based on the Kubernetes open-source software.
“Mirantis is expected to operate as a standalone subsidiary, serving its existing customer base while supporting IREN’s AI Cloud deployments,” Iren said in a statement.
Why the Acquisition Matters for Iren
The announcement is important for investors, as some analysts have started to query how long it will take the Sydney-based company to transition from a crypto miner to an AI cloud company. Iren has said the acquisition will enable it to expand its services to more customers by meeting their requirements.
Moreover, the deal comes as Iren this week also reported another milestone in its efforts to improve its capacity: the successful energization of its 1.4 gigawatt Sweetwater 1 data center site in Texas. The company announced that it has finally connected its high-voltage substation to the Texas power transmission grid through the Electric Reliability Council of Texas.
For the three months that ended on March 31, analysts expect Iren’s revenue to jump by 48% year-over-year to $219.69 million but expect profitability to remain a challenge. They expect the company to swing from a profit of 11 cents per share a year ago to a loss of 22 cents per share.
Is IREN a Good Stock to Buy?
On Wall Street, analysts continue to consider IREN’s shares a Moderate Buy based on their consensus rating. This breaks down into eight Buys and three Holds issued over the past three months.
However, the average IREN price target of $77.11 suggests about 46% upside in the months ahead.
