Macquarie Maintains "Outperform" Rating for IREN Limited (NASDAQ:IREN)

• IREN Limited (NASDAQ:IREN) reported a 172% year-over-year increase in revenue in the third quarter of fiscal year 2025, primarily due to its Bitcoin mining operations.
• The company is diversifying its revenue streams by making significant progress in its AI Cloud services, aiming to mitigate risks associated with the volatile cryptocurrency market.
• Despite a recent decrease in stock price, IREN is trading at a reasonable three times forward sales multiple, indicating a strong market presence and investor interest in its future prospects.

On May 15, 2025, Macquarie maintained its "Outperform" rating for IREN Limited (NASDAQ:IREN), with a hold action and a stock price of $7.65. IREN is a company primarily engaged in Bitcoin mining, but it is also expanding into AI Cloud services. The company competes with other tech and mining firms in a rapidly evolving market.

IREN reported a strong performance in the third quarter of fiscal year 2025, with a 172% year-over-year increase in revenue. This growth is largely due to its Bitcoin mining operations, which have seen expanding margins. The company achieved a quarterly profit of $24.2 million, showcasing its ability to capitalize on the growing demand for cryptocurrency.

Despite its reliance on Bitcoin mining, IREN is diversifying its revenue streams. The company is making significant progress in its AI Cloud revenue, which is growing rapidly from a small base. This diversification strategy could help mitigate risks associated with the volatile cryptocurrency market.

The stock is currently trading at $7.68, reflecting a decrease of 3.70% with a change of $0.30. Despite this, the stock is trading at a reasonable three times forward sales multiple, aligning with sector medians. This valuation comes even after recent at-the-market issuance, which has led to ongoing shareholder dilution.

IREN's stock has traded between a low of $7.35 and a high of $7.79 today, with a 52-week range of $4.95 to $15.92. The company has a market capitalization of approximately $1.72 billion, and today's trading volume is 16.56 million shares. These figures indicate a strong market presence and investor interest in the company's future prospects.