Time To Buy IREN Stock?

IREN (NASDAQ:IREN) – a green Bitcoin mining data center operator powered by renewable energy sources like solar and wind – has experienced an impressive stock surge of nearly 80% over the past month. This significant increase can be attributed to several recent positive developments:

• June 13: IREN successfully completed a $550 million 3.5% convertible senior notes offering, which significantly boosted market confidence.
• June 30: The company announced it had reached its mid-year target of 50 EH/s in installed self-mining capacity, a key operational milestone.
• July 3: IREN revealed the purchase of 2,400 next-generation NVIDIA Blackwell B200 and B300 GPUs to support its expanding AI Cloud Services.

While these developments have undeniably excited investors, the crucial question now is whether IREN stock, currently trading around $16 after an 80% rally, remains a compelling buy.

Our assessment suggests that it does. We believe the stock is a good pick at its current price point of approximately $16. However, it is important to acknowledge that there are several concerns regarding IREN, particularly its currently high valuation, which introduces a notable level of risk.

Our conclusion is based on a comprehensive comparison of IREN’s current valuation against its operational performance in recent years, as well as its historical and present financial condition. Our analysis across key parameters—Growth, Profitability, Financial Stability, and Downturn Resilience—indicates that the company currently exhibits weak operating performance and financial health, as further detailed below.

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How Does IREN’s Valuation Look vs. The S&P 500?

Going by what you pay per dollar of sales or profit, IREN stock looks expensive compared to the broader market.

• IREN has a price-to-sales (P/S) ratio of 9.5 vs. a figure of 3.1 for the S&P 500

How Have IREN’s Revenues Grown Over Recent Years?

IREN’s Revenues have grown considerably over recent years.

• IREN has seen its top line grow at an average rate of 270% over the last 3 years (vs. increase of 5.5% for S&P 500)
• Its revenues have grown 127.2% from $165 Mil to $375 Mil in the last 12 months (vs. growth of 5.5% for S&P 500)
• Also, its quarterly revenues grew 168.4% to $145 Mil in the most recent quarter from $54 Mil a year ago (vs. 4.8% improvement for S&P 500)

How Profitable Is IREN?

IREN’s profit margins are considerably worse than most companies in the Trefis coverage universe.

• IREN’s Operating Income over the last four quarters was $-19 Mil, which represents a very poor Operating Margin of -5.0%
• For the last four-quarter period, IREN Net Income was $-36 Mil — indicating a very poor Net Income Margin of -9.5% (vs. 11.6% for S&P 500)
• However, the company’s adjusted EBITDA of $54 million last year reflected a good 29% margin.

How Resilient Is IREN Stock During A Downturn?

IREN stock has fared much worse than the benchmark S&P 500 index during the 2022 inflation downturn. While investors have their fingers crossed for a soft landing by the U.S. economy, how bad can things get if there is another recession? Our dashboard How Low Can Stocks Go During A Market Crash captures how key stocks fared during and after the last six market crashes.

Inflation Shock (2022)

• IREN stock fell 95.7% from a high of $24.80 on 19 November 2021 to $1.06 on 28 December 2022, vs. a peak-to-trough decline of 25.4% for the S&P 500
• The stock is yet to recover to its pre-Crisis high
• The highest the stock has reached since then is 15.66 on 3 July 2025

Putting All The Pieces Together: What It Means For IREN Stock

In summary, IREN’s performance across the parameters detailed above are as follows:

• Growth: Extremely Strong
• Profitability: Extremely Weak
• Financial Stability: Extremely Weak
• Downturn Resilience: Extremely Weak
• Overall: Weak

While our analysis shows IREN’s operating performance and financial condition are currently weak, indicating a degree of risk, the company’s explosive growth cannot be overlooked. Over the past three years, IREN has achieved an average annual growth rate of 270%, a trend we expect to continue in triple digits for at least the next couple of years.

Given this robust growth trajectory, we believe a valuation of 9 times trailing revenues is not overly expensive and suggests the stock likely has some room for further appreciation. Therefore, despite the identified risks, we conclude that IREN is a good stock to buy.

While IREN stock looks promising, investing in a single stock can be risky. On the other hand, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.

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