Shares in Iren Limited (IREN) dropped about 4% on Monday afternoon despite its $5.5 billion AI infrastructure deal with top chipmaker Nvidia (NVDA). The drop comes as the Australian AI cloud company is raising $2 billion in senior unsecured convertible notes due in 2033 and also received a Sell rating from JPMorgan.
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New trading tool for CRWV bullsIren Raises $2B in Fresh Capital
On Monday, Iren revealed that it has kicked off its latest capital raise efforts, with plans to use the funds to buy call options on its shares to prevent share dilution in the future if investors decide to convert their notes to shares. It intends to use the rest of the capital for general corporate purposes and working capital.
The new fundraising effort comes weeks after Iren filed a new prospectus supplement to enable it to sell up to $6 billion in new shares into the market through a group of banks and brokers. The document expanded an earlier filing that only permitted up to $1 billion in offerings.
The AI cloud company, which is transitioning its hardware from digital asset mining to setups such as graphics processing units and servers required for massive AI workloads, continues to raise capital as it chases growth, competing with rivals such as CoreWeave (CRWV) and Nebius (NBIS).
Why JPMorgan Says to Sell IREN Stock
Meanwhile, JPMorgan, in its latest rating on Iren, remains bearish on the Sydney-based company despite its $3.4 billion cloud services deal with Nvidia and a potential $2.1 billion equity stake from the chipmaker. The banking giant’s analyst Richard Choe slapped a Sell rating on IREN despite raising his price target from $39 to $44, suggesting about 22% upside in the months ahead.
Choe argued that while the Nvidia deal boosts Iren’s “clout as a neocloud provider,” he remains concerned about the circular nature of the deal: Iren is now both a customer and seller to Nvidia. He also pointed to the “undefined access to GPUs from Nvidia” for his rating.
In February, JPMorgan analyst Reginald Smith also made a Sell call on IREN stock in its model review ahead of the cloud company’s Q2 2026 results.
Is IREN Stock a Strong Buy?
On Wall Street, IREN’s shares continue to carry a Moderate Buy consensus rating from analysts. This is based on seven Buys, three Holds, and one Sell issued over the past three months.
However, the average IREN price target of $69.90 suggests about 16% upside ahead.
