IREN: Price Target Cut on AI Pivot

Bernstein analysts slashed their price target on Iris Energy (IREN) from $26 to $10, citing the firm's aggressive pivot away from Bitcoin (BTC) mining toward AI infrastructure. The downgrade reflects concerns over execution risks in converting mining sites to high-performance computing hubs, potentially impacting short-term revenues amid a volatile crypto market crash environment.

This shift mirrors broader industry trends, where miners like IREN chase AI industry impact opportunities after the 2025 BTC halving squeezed margins. Over the past six months, similar pivots have boosted stocks like those tied to TAO ecosystems, but IREN's move dumps unprofitable rigs, betting on AI's explosive growth to offset Bitcoin mining declines.

Zooming into the BTC 4-hour chart, price action clings to $76,210 amid a bearish EMA structure where the 50-period at $76,995 caps upside like a steel lid, while the 200-EMA at $73,943 offers distant support. MACD's death cross at -314 screams sustained downside momentum, yet neutral RSI at 40.1 hints at no immediate exhaustion. With Bitcoin trading snug inside Bollinger Bands—upper resistance at $79,072 eyeing rejection and lower support at $75,781 as a potential floor—a retracement to that 200-EMA confluence seems inevitable before any rebound, especially if AI hype diverts capital from mining plays.