The datacenter business is seeing something extraordinary with IREN. IREN's compute capacity increased from 1.1 exahash to 50 exahash in just three years. This is world-class engineering execution that indicates this company has something much more valuable"AWS Certified AI Practitioner Early Adopter"I am a DevOps Engineer for a major, wholly owned subsidiary of a large-cap Fortune 500. I am a true subject-matter expert on the actual buildout, deployment, and maintenance of AI tools and applications. I have ...

Core Insights - IREN stock has increased nearly four times year-to-date to approximately $42, despite a recent 10% drop following a downgrade by JPMorgan from neutral to underweight [2] - The company has transitioned from being solely a Bitcoin miner to a provider of AI cloud infrastructure, which has contributed to its stock surge [3] - IREN benefits from low energy costs, fully powered by renewable energy, with average electricity costs at approximately $0.033 per kilowatt-hour, positioning it as one of the lowest-cost operators in the sector [4] Business Model and Growth - IREN operates a dual business model: Bitcoin mining provides consistent cash flow, while AI cloud services offer significant growth potential, with a target of approximately $500 million in run-rate cloud revenue by Q1 2026 [5] - Revenues have surged from $60 million in FY'22 to about $501 million in FY'25, with forecasts indicating over 120% annual growth for FY'26 and FY'27, projecting sales to exceed $2.45 billion by FY'27 [6] - The company has expanded its AI Cloud capacity to approximately 23,000 GPUs and ordered an additional 12,400 GPUs at a cost near $674 million, while controlling around 3 gigawatts of low-cost power capacity [7] Valuation and Market Position - The stock is currently valued at roughly 43 times its forward earnings and about 10 times its forward sales, reflecting the premium investors are paying for anticipated growth [8] - The competitive landscape includes established cloud service providers and other cryptocurrency miners, with notable execution risks and potential stabilization in demand growth for computing resources over time [8]

Core Viewpoint - Iren (IREN) is experiencing a bullish sentiment among investors, driven by a significant price target increase from analysts, indicating strong future potential for the company [1][3]. Stock Performance - Iren's stock gained nearly 10% in value, outperforming the S&P 500's 0.3% increase during the same trading sessions [2]. Analyst Insights - Michael Donovan from Compass Point raised Iren's fair-value assessment from $23 to $50 per share, reflecting an increase of over 100%, while maintaining a buy recommendation [3]. Business Strategy - Iren is undergoing a business pivot, continuing its Bitcoin mining operations while aggressively expanding into data center buildouts, which are expected to benefit from the growing resource demands of artificial intelligence (AI) technology [5]. Market Potential - The company's recent investments in hardware to enhance its AI-supporting infrastructure signal a strong commitment to this pivot, with expectations of limited supply for high-density computing resources in the coming years, indicating high potential for growth [6].

Core Insights - The shift from crypto mining to AI data centers is driven by the need for more stable and higher revenue sources, as AI data centers can generate up to 25 times more revenue per kilowatt-hour compared to traditional crypto mining operations [2][3][4] - Companies in the crypto mining sector are experiencing a transformation in their business models, with many repurposing their infrastructure to meet the growing demand for AI services [4][5] Industry Trends - The economics of crypto mining are becoming less favorable due to rising costs, particularly for electricity and computational resources, prompting a transition to AI data centers [4] - AI data centers are expected to provide recurring revenues with high growth potential and profit margins, contrasting with the volatility of the crypto market [2][3] Company Transformations - Hive Digital Technologies has pivoted from a pure crypto focus to a dual strategy involving both crypto and AI infrastructure, aiming for a $100 million run rate using Nvidia AI chips [6][7] - Core Scientific is transitioning to a balanced model between crypto mining and AI, with significant expansion projects underway, including a $1.2 billion data center in Texas [11][14] - IREN Limited has seen a remarkable 128% year-over-year growth by combining bitcoin mining with a shift to AI-ready data centers, supported by ultra-low energy costs [17][18] Financial Performance - HIVE's bitcoin mining capacity increased by 58% month-over-month, with plans to reach 25 EH/s by late 2025, while also focusing on renewable energy operations [7][8] - IREN's AI cloud services are generating $26 million in annualized revenue, with expectations to reach $500 million in annualized sales following a significant investment in new GPUs [18][19] Market Positioning - Companies transitioning from crypto to AI are being valued higher in the market, reflecting investor interest in the AI narrative [5][20] - The acquisition of Core Scientific by CoreWeave, valued at approximately $9 billion, highlights the growing importance of AI infrastructure in the investment landscape [12][15][16]

Core Insights - Bitcoin mining companies faced challenges due to the halving of Bitcoin's block rewards, but a rise in Bitcoin's price did not lead to a significant recovery for these companies [1] - Companies are pivoting from Bitcoin mining to artificial intelligence (AI) and cloud computing, with some using AI to attract investor interest [2] Company Summaries - **IREN Limited (IREN)**: - IREN has transitioned from Bitcoin mining to AI, doubling its AI cloud capacity to 23,000 GPUs with a $674 million investment [5] - The company aims for $500 million in annualized recurring revenue (ARR) from AI cloud by Q1 2026, with current ARR at $14 million [6] - Bitcoin mining currently generates about $1 billion in annualized revenue, while the AI cloud business is scaling at nearly 100% incremental margins, positioning IREN for a total of approximately $1.25 billion in annualized revenue [6] - IREN's stock has surged 526% in the past six months and 1,080% over the last 24 months, with a recent price target of $82 from Roth/MKM [7] - **Cipher Mining (CIFR)**: - Cipher Mining has experienced a 70.6% increase in stock price over the past month [9] - The company secured a $3 billion validation deal with AI computing firm Fluidstack, which includes $1.4 billion in lease commitments backed by Google [9] - The total potential revenue from this contract could reach up to $7 billion [9]

Group 1 - Uttam is a growth-oriented investment analyst focusing on the technology sector, particularly in semiconductors, Artificial Intelligence, and Cloud software [1] - The research also covers MedTech, Defense Tech, and Renewable Energy sectors [1] - Uttam co-authors The Pragmatic Optimist Newsletter, which is frequently cited by major publications like the Wall Street Journal and Forbes [1] - Prior to his research career, Uttam led teams at major technology firms in Silicon Valley, including Apple and Google [1]

Core Insights - IREN Limited has experienced a year-to-date stock gain of over 380%, indicating a significant transformation in its business model beyond cryptocurrency mining [1] - The company is pivoting towards the artificial intelligence (AI) sector, positioning itself as a diversified technology company and a key supplier of high-performance computing power [2] Business Transformation - A major catalyst for this shift was the announcement on September 22, 2025, regarding the doubling of its AI Cloud fleet to approximately 23,000 GPUs through a $674 million procurement [2][3] - This strategic move aims to achieve over $500 million in annualized run-rate revenue from its AI Cloud business by Q1 2026, creating a revenue stream independent of Bitcoin mining [4] Financial Performance - In the fiscal year ending June 30, 2025, IREN reported a 168% increase in total revenue to $501 million and a net income of $86.9 million, a significant turnaround from a prior loss [6] - Adjusted EBITDA increased by 395% to $269.7 million, showcasing strong operational leverage and financial stability with $564.5 million in cash available for AI expansion [7] Competitive Advantages - IREN's vertically integrated model allows it to own and operate its entire technology stack, providing advantages over competitors who lease space [8] - The company has secured NVIDIA Preferred Partner status, enhancing its credibility and supply chain access in the AI infrastructure market [5] Market Position and Analyst Sentiment - Arete Research initiated coverage on IREN with a Buy rating and a price target of $78.00, reflecting its emerging status in the AI infrastructure sector [5] - The current price-to-earnings ratio (P/E) of 79.90 indicates market expectations for high future growth, supported by bullish analyst targets [10] Strategic Vision - IREN is leveraging its expertise in operating power-intensive data centers for Bitcoin mining to establish a strong foundation in the AI market [12] - The company is focused on creating one of the largest purpose-built AI infrastructure platforms in North America, with ongoing projects like the Horizon liquid-cooled data centers and the Sweetwater hub [8]

Group 1 - Jim Cramer describes American Bitcoin (ABTC) as a "total spec," indicating its speculative nature in the market [2][3] - ABTC is a Bitcoin mining firm co-founded by Donald Trump's sons and is majority owned by Hut 8 [2] - The stock price of ABTC has declined from $8.32 to $6.58 since its debut on Wall Street on September 3, 2025 [5] Group 2 - Cramer mentions that while ABTC is inexpensive, it carries significant risk, stating it could "lose everything" [4][5] - Another Bitcoin mining stock, IREN Limited, has seen a 380% increase in stock price over the past year, but Cramer warns it is "too hot" [6][7] - Bitcoin's price has fallen over 5% in the last week, trading at $109,439.91 at the time of the report [7]

Key PointsAn analyst changed his recommendation on the stock.He now feels it's worthy only of a sell.10 stocks we like better than Iren ›Although the performance of stocks never depends entirely on the opinions of analysts, those market professionals can have quite an impact at times. More than once this week, crypto mining company Iren (NASDAQ: IREN) experienced that dynamic.Unfortunately, on Friday, this turned negative for the stock, and it lost almost 10% of its value. This occurred on a day for stocks ...

Iren (IREN) shares fell 10% today after a senior JPMorgan analyst issued a bearish note on the data center company. On Friday, analyst Reginald Smith downgraded IREN stock to “Underweight” and announced a $24 price target, indicating the potential for another 40% decline from current levels. More News from Barchart Despite today’s pullback, IREN shares are trading at more than 7x their price in early April. www.barchart.com Why JPMorgan Downgraded IREN Stock Today In a research note this morning, Smi ...