Core Insights - IREN Limited has doubled its AI cloud capacity to 23,000 GPUs through the acquisition of an additional 12,400 GPUs for approximately $674 million, expecting to achieve $500 million in AI Cloud annualized run-rate revenue by Q1 fiscal 2026 [1][10] AI Cloud Expansion - The company is rapidly expanding its AI cloud business, with over 10,000 GPUs online or set to be commissioned soon, including next-generation liquid-cooled GB300 NVL72 systems from NVIDIA [3] - IREN is on track to install more than 60,000 NVIDIA Blackwell GPUs at its British Columbia sites, transitioning from bitcoin mining to AI, including a new liquid-cooled data center for GB300 NVL72 installations [4] Financial Performance - IREN is projected to achieve $1.25 billion in annualized revenues by December 2025, with approximately $1 billion from bitcoin mining and $200-$250 million from AI Cloud [4] - The company's shares have appreciated 314.5% year to date, significantly outperforming the broader Zacks Finance sector's return of 14.9% and the Zacks Financial Miscellaneous Services industry's 9.7% [8][10] Competitive Landscape - IREN faces strong competition in the bitcoin mining market from companies like Strategy (MSTR) and CleanSpark (CLSK) [5] - Strategy has reported a bitcoin yield of 19.7% at the end of Q2 2025, with expectations to reach 30% and $20 billion in gains if bitcoin prices hit $150,000 by year-end [6] - CleanSpark produced 2,012 bitcoins in Q3 2025, a 28% year-over-year increase, with an average revenue per bitcoin of $99,000, reflecting a 50% year-over-year increase [7] Valuation Metrics - IREN's stock is trading at a premium, with a price/cash flow ratio of 4.82X compared to the industry's 3.81X, and it has a Value Score of F [12] - The Zacks Consensus Estimate for fiscal 2026 earnings is $1.08 per share, unchanged over the past week, while the company reported earnings of 4 cents per share in fiscal 2025 [14]

Core Insights - IREN Limited is expanding its GPU fleet by purchasing an additional 4,200 Blackwell B200 GPUs from NVIDIA, increasing its total to approximately 8,500 GPUs [1][10] - The Blackwell architecture provides significant improvements in AI compute performance and energy efficiency, allowing IREN to offer next-generation compute capabilities in a supply-constrained market [2] - IREN Limited is one of the largest and lowest-cost Bitcoin miners, achieving a 326% year-over-year hashrate growth in Q3 FY25, with an installed hashrate target of 50 EH/s [3] - AI Cloud services revenues for IREN surged 33% year-over-year to $3.6 million in Q3 FY25, indicating strong growth in this segment [4][10] - IREN faces strong competition in the Bitcoin mining market from companies like Strategy and CleanSpark [5] Financial Performance - IREN's hardware profit increased by 28.7% month-over-month to $63.3 million in July, with an annualized hardware profit of approximately $830 million [3] - The average revenue per Bitcoin for CleanSpark was $99,000, a 50% increase year-over-year, while IREN's cost structure remains competitive [7] - IREN's stock has appreciated 135.5% year-to-date, significantly outperforming the broader Zacks Finance sector and the Zacks Financial Miscellaneous Services industry [8] Valuation Metrics - IREN's stock is trading at a forward 12-month price/cash flow ratio of 82.39X, compared to the industry average of 26.72X, indicating a premium valuation [13] - The Zacks Consensus Estimate for IREN's 2025 earnings is 14 cents per share, unchanged over the past 30 days, following a loss of 29 cents per share in the same quarter last year [14]