An institutional trader has placed a highly unusual $1.8M put sweep on Iris Energy (NASDAQ: IREN), signaling aggressive downside protection or outright bearish positioning in the near term. The order targets the $45 strike expiring May 29, 2026, which is just 10 days away. The trader swept 7,026 contracts at the ask price of $2.55 per contract. With a total volume of 7,670 against an open interest of just 4,627, the trade generated a 1.66x V/OI ratio, indicating new, urgent positioning.
This short-dated, out-of-the-money put sweep is particularly notable given IREN’s current spot price of $46.66. The fact that the contracts expire in just over a week suggests the trader is bracing for immediate volatility or a potential pullback. The execution at the ask price and the “HIGHLY_UNUSUAL” flag on the sweep underscore the conviction behind this $1.8M premium bet, which stands in stark contrast to the company’s recent bullish AI narrative. This kind of aggressive, short-dated positioning is reminiscent of the highly unusual $1.2M SOXX put sweep that signaled near-term caution in the semiconductor sector.
Volume and Open Interest Data
The volume and open interest data for the IREN 45P 05/29/2026 contracts reveals a sudden surge in activity. On May 19, volume spiked to 8,088 contracts, eclipsing all prior days’ activity in the six-day window. The open interest increased by 123 contracts on the day, confirming that new positions are being opened rather than existing ones being closed. This influx of volume, heavily weighted toward the $1.8M sweep, confirms the aggressive new positioning and signals that at least one major participant is making a fresh, high-conviction directional bet.
Furthermore, the contract price has surged from $0.75 on May 14 to $1.64 on May 19, a 119% increase in just five days. The implied volatility remains elevated at 102.02%, reflecting significant market uncertainty and high demand for these short-dated options. This data suggests that market participants are willing to pay a substantial premium for near-term downside exposure, even as the broader market narrative around IREN remains constructive.
What’s Happening with IREN
Iris Energy recently reported its Q3 FY26 results on May 7, 2026, showcasing record revenue growth driven by its aggressive pivot from Bitcoin mining to AI cloud services. The company’s Q1 FY26 results had already demonstrated a 355% year-over-year revenue increase to $240.3 million, and the momentum has continued. A key driver of this transformation is a landmark strategic partnership with NVIDIA announced on May 7, 2026, which includes plans to deploy up to 5 gigawatts of AI infrastructure across IREN’s global data center pipeline. As part of the deal, NVIDIA received a five-year right to purchase up to 30 million shares at $70 per share, representing a potential $2.1 billion investment.
The company is also backed by a $9.7 billion AI cloud contract with Microsoft, targeting $3.4 billion in annualized run-rate revenue by the end of 2026 through an expansion to 140,000 GPUs. The flagship 2-gigawatt Sweetwater campus in West Texas is central to this buildout, with the 1.4GW substation energization targeted for April 2026. Despite these monumental long-term growth catalysts, the stock has experienced significant volatility as investors weigh the immense capital requirements against the ambitious revenue targets.
The aggressive near-term put sweep suggests that some institutional players may be hedging against potential execution risks or anticipating a “sell the news” reaction following the recent flurry of major announcements. The pattern of using short-dated, out-of-the-money puts as a tactical hedge is well-documented in options flow analysis, and the HIGHLY_UNUSUAL flag on this sweep indicates the activity falls well outside normal trading patterns for this contract. Traders tracking similar setups in other AI infrastructure plays like CORZ will recognize this divergence between long-term bullish fundamentals and short-term options positioning.
About IREN
Iris Energy (IREN) is a vertically integrated AI Cloud Service Provider that delivers large-scale GPU clusters for AI training and inference, alongside its legacy Bitcoin mining operations. The company leverages an expansive portfolio of grid-connected data centers located in renewable-rich regions across North America, Europe, and APAC. By combining deep expertise in power infrastructure, land development, and high-performance computing, IREN is rapidly scaling its facilities — most notably the flagship 2-gigawatt Sweetwater campus in Texas — to meet the immense computational demands of the global AI revolution. The company’s dual business model leverages robust mining cash flow to fund its ambitious AI data center expansion.
Analyst Ratings
| Analyst Firm | Rating | Price Target |
|---|---|---|
| Consensus (14 Analysts) | Buy | $75.00 |
| High Estimate | — | $105.00 |
| Low Estimate | — | $41.00 |
| eToro Consensus | Buy | $73.67 |
| CNN Markets | Buy (69%) | — |
Wall Street analysts remain overwhelmingly bullish on IREN’s long-term prospects, driven by its successful pivot into the AI data center space. According to consensus estimates from 14 analysts tracked by Stock Analysis, the stock holds a “Buy” rating with an average 12-month price target of $75.00, representing approximately 61% upside from current levels near $46.66. The highest estimates reach up to $105.00, reflecting deep confidence in the company’s massive expansion plans and high-profile partnerships with Microsoft and NVIDIA.
This strong bullish consensus creates an intriguing divergence when compared to the highly unusual $1.8M put sweep. While analysts focus on the long-term revenue potential of the Microsoft contract and the NVIDIA partnership, the short-dated options activity indicates that at least one major institutional player is anticipating near-term turbulence — perhaps taking profits after the stock’s significant run, or hedging against delays in the ambitious infrastructure rollout. With implied volatility at 102% and the contract expiring in just 10 days, this is a high-stakes, high-conviction bet that the market will be watching closely.
Disclaimer
Options trading involves significant risk and is not suitable for all investors. The information provided in this article is for educational and informational purposes only and should not be construed as financial advice. Past performance is not indicative of future results. Always conduct your own due diligence and consult with a licensed financial advisor before making any investment decisions.
