IREN Shifts From Bitcoin Mining to AI Cloud, Stock Target Adjusted

Irene’s stock rating dropped from $125 to $100 per share after analysts noted the company is moving away from cryptocurrency mining toward large‑scale artificial intelligence services. The change does not signal a decline in IREN’s AI plans, but reflects two separate issues: the company is cutting back its Bitcoin mining operations and has issued more shares, diluting existing ownership. The core of IREN’s growth strategy is a partnership with Microsoft. Under a five‑year agreement, the firm will supply 77, 000 of its 150, 000 graphics processing units (GPUs) to the tech giant, generating about $1. 94 billion in yearly revenue. The remaining GPUs are sold to other cloud customers, and by February the company already had $400 million in signed contracts. To fund this expansion, IREN entered a $5. 8 billion deal with Dell for Nvidia GB300 chips and secured $3. 6 billion in low‑interest, GPU‑backed financing. Combined with Microsoft’s advance payments, the arrangement covers roughly 95 percent of the capital needed for the Microsoft deal.Looking ahead, analysts project that IREN’s AI cloud earnings will hit $2. 6 billion in 2027 and rise to $6 billion by 2030. By that time the firm plans to operate 275, 000 GPUs—almost double its current count. Expected operating margins are close to 82 percent at scale, which would translate into nearly $5 billion in earnings before interest, taxes, depreciation, and amortization by the end of the decade. IREN owns 4. 5 gigawatts of power across Texas, British Columbia and Oklahoma, a key asset for its long‑term expansion. The company also has 3. 6 gigawatts of unused capacity in Sweetwater and Oklahoma, valued at $3 million per megawatt, adding roughly $10. 8 billion to its overall valuation. Bitcoin mining, once the company’s main revenue source, is now valued at zero in the new financial model. Analysts expect IREN to gradually replace mining rigs with GPU racks, converting existing sites for cloud workloads. Mining income is forecast to decline sharply and reach zero by fiscal year 2030. Other major Bitcoin miners have followed a similar path, some even dropping crypto mining entirely to focus on AI services amid the technology boom.