- IREN stock price has plunged by 55% from its highest level in 2025.
- The company's short interest has continued rising, moving to 15% this year.
- The stock has dropped below a key support level, pointing to more downside.
IREN stock price remains in a bear market amid the rising short interest. It dropped to $35, down by over 55% from its highest point in 2025, and is at the lowest level since September last year, with its market capitalization falling from over $25 billion to $11.6 billion today.
IREN Short Interest Hits 15%
Wall Street investors are continuing to short IREN stock despite its ongoing pivot from Bitcoin mining to the artificial intelligence (AI) data center industry.
Bloomberg data shows that the short interest has jumped to 15.6%, a sign that most investors believe that the stock will continue falling in the foreseeable future.
The main reason for the rising short interest is the soaring costs as the company continues rolling out its data centers. It is also happening as the Bitcoin price remains in a bear market, a move that is affecting its Bitcoin mining operations.
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The most recent results revealed IREN’s revenue slowed to $184 million in the second quarter from $240 million in the same period last year. Its net loss came in at $155 million from a profit of over $384 million. This loss came from the unrealized losses related to its prepaid forwards and capped calls on its convertible notes.
A key concern about IREN is that the company will continue to have elevated capital expenditure (CAPEX) in the foreseeable future. It plans to spend billions of dollars this year, with CoreWeave, a top competitor, plans to spend between $30 billion and $35 billion this year.
In the recent results, the company said that it issued $2.3 billion in convertible notes. It also used its backlog, especially the $9.7 billion deal with Microsoft to raise capital. For IREN to compete with other companies, it will need to keep growing its capital expenditure in the coming months.
Wall Street analysts believe that IREN’s business will continue seeing strong revenue in the coming years, mostly because of its Microsoft deal. It will make an annual revenue of $1.01 billion this year, up by 98% YoY. It will then make $2.91 billion, up by 186% YoY.
IREN Stock Price Technical Analysis
IREN share price chart | Source: TradingView
The daily timeframe chart shows that the IREN share has dropped sharply in the past few months, moving from a high of $76 in November last year to the current $35.
It has moved below the key support level at 35, its lowest level this month and December last year, and the neckline of the head-and-shoulders chart pattern.
IREN stock has remained below all moving averages and the Supertrend indicator. That is a sign that bears remain in control today. The Relative Strength Index (RSI) has moved below the neutral point at 50. Also, the MACD indicator has moved below the neutral point since February.
Therefore, the most likely scenario is where the IREN stock continues falling, with the next key target being at $30. A drop below $30 will point to more downside, potentially to $25.
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