IREN secured a 5-year cloud deal with Microsoft but saw bonds tied to AI data centers drop in value. The company needs capital to utilize its 3GW capacity. Despite positive news, IREN stock fell 21.3% in November due to profit-taking and concerns about AI infrastructure safety. The company raised $1.0 billion in convertible bonds in October and sold more equity and convertibles in December to fund its growth.

Investors should consider the potential of IREN but note its reliance on capital markets. The AI company’s stock sold off in November along with its peers due to concerns about debt tied to AI infrastructure. IREN’s ability to raise capital at reasonable prices will be key to its growth. The company holds significant power capacity and has a deal with Microsoft, but faces challenges in funding its expansion.

Read more at NASDAQ: Why IREN Limited Sank Over 21% in November