Iris Energy Shares Hit by Sector-Wide Sell-Off

Shares of Bitcoin mining and high-performance computing firm Iris Energy (IREN) experienced a sharp decline on Friday, dragged down by a negative sentiment shock originating elsewhere in the technology sector. The stock closed at $40.13, marking a single-day drop of 8.7%.

The closing price now sits below a key threshold: the $41.12 per share price at which Iris Energy successfully raised fresh capital in early December. A stock trading below its most recent placement price is often viewed by market technicians as a bearish signal, indicating that investors who participated in that fundraising are currently facing paper losses.

Friday's trading session was notably volatile. Opening at $44.17, the stock plunged to an intraday low of $39.32 before paring some losses. Trading volume exceeded 35 million shares, roughly 35% above the daily average, suggesting significant institutional selling activity. The company's market capitalization contracted from approximately $13.1 billion to an estimated $11.6 billion.

Oracle's Report Triggers Broad Retreat

The catalyst for the sell-off was external, stemming from disappointing quarterly results announced by software giant Oracle. Oracle's report raised market concerns about the near-term profitability of artificial intelligence infrastructure investments. This sudden skepticism spilled over to cloud service providers and HPC specialists broadly.

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

Iris Energy, which is strategically pivoting from pure-play Bitcoin mining toward AI cloud services powered by NVIDIA's H100 and H200 GPUs, was caught in the downdraft. The market's reaction highlights the company's growing association with the high-performance computing and AI infrastructure sector.

An interesting sector dynamic was observed: while data-center-focused stocks like Iris Energy sold off, shares of nuclear power companies advanced. This pattern frequently indicates a rotation of capital within a broader thematic investment area, rather than a wholesale exit.

Market Focus Shifts to Key Support

All eyes are now on the psychologically significant $40 level. A sustained break below this support could see the stock test the $38 range in the near term. For the price to stabilize and recover, buyers will need to push shares back above the $41.12 capital raise price; failure to do so may invite further downward pressure.

Despite the sharp pullback, analyst sentiment remains fundamentally positive. Price targets ranging from $56 to $69 per share reflect continued confidence in Iris Energy's long-term narrative, centered on data center expansion and access to secured power. The key for regaining positive momentum will be the company's ability to demonstrate tangible progress, such as improved GPU utilization rates or enhanced mining efficiency, in its upcoming communications.