IREN Stock Heads For Ninth Straight Loss: $50M-A-Year NBA Spends, $788M Co-Founder Pay Packet Leave Retail Unimpressed
Synopsis
IREN shares fell over 10% on Thursday, marking their worst single-day drop in a month and heading for a second straight weekly decline.
- IREN will become the official jersey patch partner for the Golden State Warriors starting in the 2026-27 season, paying more than $50 million per year.
- IREN’s board approved close to nine million restricted stock units each for co-CEOs William Roberts and Daniel Roberts, according to a July 1 filing.
- The value of the stock units were around $788 million.
Iren Ltd. (IREN) share price dropped over 10% on Thursday, down for the ninth straight session, as investors frowned upon a large NBA deal and a massive pay package for the co-founders, while mounting short interest on the stock also dampened sentiment.
The Australian-founded neocloud service provider recently signed a deal with NBA’s Golden State Warriors to become their official jersey patch partner starting in the 2026-27 season. The partnership will cost Iren about $50 million per year.
Alternatively, in a regulatory filing earlier this week, Iren also significantly boosted pay packages for its co-founders to nearly $788 million via stock options, which amounts to close to AUD 1.14 billion.
However, retail investors were concerned about the stock options provided, specifically when the company earlier in April authorized an upsized $6 billion at-the-money (ATM) equity offering to finance GPU purchases and capacity expansion, triggering stock dilution fears among investors.
IREN’s NBA Partnership
REN will become the official jersey patch partner for the Golden State Warriors starting in the 2026-27 season. The agreement also extends to the WNBA’s Golden State Valkyries (appearing on warmup jerseys) and the NBA G League’s Santa Cruz Warriors (as a jersey patch partner).
The partnership is reportedly worth more than $50 million per year, making it the most lucrative sponsorship deal in North American sports history. It replaces the team's former partnership with Japanese e-commerce giant Rakuten.
IREN’s Executive Compensation
Iren’s board unanimously approved an equity package granting 9 million restricted stock units (RSUs) each to Co-Founders and Co-CEOs William Roberts and Daniel Roberts. Based on recent stock values, the total package is worth roughly US$788 million ($1.14 billion AUD).
The RSUs vest in equal installments over four years. Crucially, each annual tranche is subject to an additional two-year post-vesting holding period, meaning they cannot sell or monetize those shares for a combined six-year timeline (stretching to the 2033 fiscal year).
IREN Stock Sees Rising Short Interest
A user highlighted mounting short interest in the stock.
View this Stocktwits post
Here is a one-year view on the short interest movement:
Retail sentiment on Stocktwits turned ‘bullish’ from ‘bearish’ with ‘high’ message volumes. Retail chatter jumped 55% from the previous session and gained 70% over the past week.
However, some retailers expressed concern over stock dilutions.
View this Stocktwits post
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