Institutional investors are selling large volumes of IREN put options, betting on a rebound as the company pivots from Bitcoin mining to high-growth AI data center operations.
IREN is experiencing a bullish shift driven by institutional investors selling over 14,000 out-of-the-money put options, signaling confidence in the stock's floor price and long-term value. This sentiment is bolstered by the company's strategic pivot from Bitcoin mining to high-growth AI cloud services, supported by $8.9 billion in total GPU financing secured recently. With analysts projecting a 10x revenue increase by 2028, the market is increasingly viewing the stock as an undervalued AI infrastructure play rather than just a Bitcoin proxy.
They are collecting high premiums (over 21% yield) while establishing a low breakeven point of $31.43, indicating they believe the stock is unlikely to fall below that level.
It is substantial; recent earnings show AI cloud services revenue ($70.5 million) has surpassed Bitcoin mining revenue ($66.7 million) for the first time.
Iren Ltd. (IREN) shares surged as institutional investors initiated significant out-of-the-money put selling, signaling bullish sentiment for the Bitcoin miner's transition into AI cloud services. With $8.9 billion in total GPU financing secured recently, analysts project revenue to grow tenfold by 2028, supporting a potential 74% upside from current levels.
Investors are selling these puts to collect high premiums while betting that IREN's stock will remain above the $31.43 breakeven point, effectively positioning for a rebound driven by the company's AI infrastructure pivot.