IREN Bets $500 Million on AI: Bitcoin Mining Powers a Bold Strategic Shift

IREN Limited (NASDAQ: IREN) has soared by more than 530% over the past half year, fueled by its decisive move away from

mining and into AI cloud infrastructure, alongside a $674 million investment in GPUs. Shares now sit at $48.75, jumping 16.6% in a single day as both analysts and investors responded to the company’s bold growth strategy. has expanded its AI cloud resources to 23,000 GPUs, including B300s, B200s, and MI350Xs, aiming to reach $500 million in annualized revenue by the first quarter of 2026. This represents a significant leap from its projected $14 million in AI cloud revenue in early 2025, highlighting rapid growth in the industry Bitcoin Magazine [ 1 ].

This expansion has received strong backing from analysts. Bernstein increased its price target to $75—an 80% gain from the previous close—citing IREN’s potential to become a leading vertically integrated AI cloud provider. Arete Research also expressed confidence, starting coverage with a $78 target and a “Buy” recommendation. Both firms pointed to IREN’s distinct advantage, leveraging nearly 3 gigawatts of affordable power, land, and data centers to fully benefit from GPU hosting, unlike rivals who depend on leasing models The Block [ 2 ]. The company’s Prince George facility in British Columbia, which has 50MW of power, could eventually accommodate over 20,000 Blackwell GPUs, further strengthening its infrastructure edge Globe Newswire [ 3 ].

IREN’s approach of balancing bitcoin mining with AI workloads has also caught the market’s eye. The company remains among the largest self-mining bitcoin operators in the U.S., with 50 EH/s of hashpower generating about $600 million in annualized EBITDA at current rates. This cash flow supports investments in AI while providing the flexibility to shift between mining and cloud services depending on profitability. Management noted that moving ASICs to other locations will help minimize any disruption to bitcoin operations during the AI expansion The Miner Mag [ 4 ].

Financial figures highlight the stock’s valuation story. Bernstein now estimates that 87% of IREN’s enterprise value comes from its AI cloud and co-location opportunities, with only 13% attributed to bitcoin mining. At a $75 share price, IREN would be valued at $7.5 million per megawatt—higher than other AI-focused miners but still below established data center companies like CoreWeave, which average $33 million per megawatt Coindesk [ 5 ]. GuruFocus pointed out mixed financial signals: while gross margins are robust at 68.27%, operating margins are slim at 4.37%, and insider sales of 2 million shares over three months warrant caution GuruFocus [ 6 ].

Investor enthusiasm reflects trust in IREN’s ability to manage execution risks. Bernstein acknowledged the hurdles of scaling AI cloud contracts and securing funding, but highlighted IREN’s proven speed in deploying GPUs. The company’s recent $102 million financing for Blackwell GPU purchases and ongoing talks for large GPU clusters show continued momentum. Still, future targets—like the $500 million ARR goal—depend on timely deliveries and customer adoption IREN Press Release [ 7 ].

With shares up 365% so far this year, IREN now boasts a $12.2 billion market cap, nearly twice that of its nearest rival. Analysts believe there is still room for growth as the AI cloud business evolves. “IREN’s integrated model and control over power resources set it apart in a sector where margins are tight,” said Bernstein’s Gautam Chhugani. However, challenges remain, including possible regulatory changes in crypto and the risk of AI hardware becoming outdated, which could put pressure on the stock’s lofty P/E ratio of 62.94 Economic Times [ 8 ].