J.P. Morgan analyst Reginald Smith has maintained their neutral stance on IREN stock, giving a Hold rating today.
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Reginald Smith has given his Hold rating due to a combination of factors regarding Iris Energy’s financial and operational developments. The company has shown impressive improvements in its mining operations, notably doubling its average hashrate and significantly increasing bitcoin production. However, despite these advancements, Iris Energy’s cloud services revenue fell short of expectations, which raises concerns about its diversification and revenue streams.
Furthermore, while the construction of the Horizon 1 data center represents a strategic move into high-performance computing, the absence of secured tenant contracts adds an element of risk. The financial implications of these expansions, including the substantial capital required and the exploration of alternative funding options, contribute to the cautious outlook. Therefore, the Hold rating reflects a balanced view of potential growth opportunities against the risks and uncertainties currently facing Iris Energy.