IREN Shares Face Year-End Selloff Amid Market Pressures

IREN Limited is closing out the 2025 trading year on a sour note, with its equity experiencing significant downward pressure. The stock has recently breached the $40 threshold and is currently trading near $38, marking a weekly decline of approximately 9%. This weakness is attributed to a confluence of challenges facing the company.

Two primary factors are driving the selloff. Persistent concerns are lingering in the market regarding the massive $2.3 billion capital raise IREN completed in early December, which involved convertible notes and share placements. While this capital is earmarked for expanding its renewable energy-powered AI data center business, investors appear to be cautiously assessing the potential dilution and the competitive risks of executing such an expansion in the crowded AI infrastructure sector.

Simultaneously, broad weakness in the cryptocurrency market is weighing on the stock. As a company with substantial Bitcoin mining operations alongside its AI ventures, IREN is sensitive to digital asset price movements. Bitcoin has recently fallen below the $87,000 level, triggering a sector-wide reevaluation. This has prompted a typical year-end "risk-off" shift, where investors are reducing exposure to more volatile holdings.

Should investors sell immediately? Or is it worth buying IREN?

A Steep Decline from Recent Highs

The current price represents a stark contrast to the stock's performance just weeks ago. Since reaching an all-time high near $77 in early November, IREN shares have lost roughly half their value. The breach of a key support level around $39 earlier this week has now brought the $37-$38 price zone into focus as a potential area of consolidation.

Market Cap and Near-Term Outlook

IREN's market capitalization now stands at approximately $12.6 billion. The question for investors looking toward 2026 is whether the current price range will establish a durable foundation. Year-end portfolio rebalancing is amplifying price swings, contributing to elevated volatility. In the short term, the stock's trajectory remains closely tied to Bitcoin's performance; further weakness in the leading cryptocurrency would likely maintain downward pressure on IREN. The market continues to balance the company's strategic positioning in high-growth AI and renewable energy against the immediate headwinds of dilution and crypto market sentiment.