IREN Limited (IREN) is undergoing a transformation, and investors have taken notice. The cryptocurrency mining firm is turning into a profitable digital infrastructure play by combining Bitcoin mining with high-demand AI cloud services. So far, so good, as its recent numbers tell a compelling story: record quarterly revenue of $148.1 million, a return to profitability with $24.2 million in net income, and a rock-solid balance sheet.
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I am optimistic about the stock and believe it deserves serious consideration for those seeking exposure to a crypto miner with an AI infrastructure technology play. The stock has outstanding growth potential, with analyst price targets suggesting potential gains of more than 50%. The stock price has doubled over the past three months alone.
Evolution into an AI Infrastructure Provider
IREN has reinvented itself as a next-generation infrastructure provider serving both Bitcoin mining and AI computing needs. It operates cutting-edge data centers across North America, with facilities strategically located in Canada and Texas, all powered by renewable energy.
The company has grown from holding a modest 2.8% share of Bitcoin production to capturing 4.5% of the market, placing it among the top 10 publicly traded miners globally. But the real game-changer has been the addition of AI cloud services, powered by nearly 1,900 NVIDIA H100 and H200 graphics processing units (the gold standard for AI computing).
What sets IREN apart from competitors like Marathon Digital (MARA) and Riot Platforms (RIOT) is its commitment to renewable energy and operational efficiency. The company has achieved industry-leading performance with an all-in Bitcoin mining hash cost of just $23, resulting in gross profit margins exceeding 87%.
However, in March, management made the strategic decision to pause Bitcoin mining expansion at 52 exahash per second and to redirect resources toward AI infrastructure development. It is a bold move into a rapidly growing market that McKinsey projects will require $6.7 trillion in infrastructure investment by 2030.
Transformation Drives Financial Results
The results from the last quarter suggest a successful transition. Q3 FY2025 revenue reached $148.1 million, 23.8% growth over the previous quarter. More to the point, the company achieved its second consecutive profitable quarter, reporting a net income of $24.2 million. Bitcoin mining contributed $141.2 million, with the company successfully mining 1,514 Bitcoins at a cost of $41,000 per coin while earning $93,000 per coin in revenue.
Meanwhile, AI cloud services generated $3.6 million with a remarkable 97% hardware profit margin and 33% quarter-over-quarter growth, demonstrating that the business model transformation is working.
Profitability metrics have been solid, with EBITDA of $83.3 million translating to a healthy 56% margin, while earnings per share of $0.11 were roughly in line with analyst expectations.
The balance sheet is also quite strong, with zero debt and $184.3 million in cash, before a recent round of fundraising. IREN added $534.9 million from an oversubscribed convertible notes offering in June 2025, giving management significant resources to execute on growth plans.
Looking ahead, management is targeting 50 exahash per second of mining capacity by June 2025, followed by the launch of Horizon 1, a 50-megawatt AI project in Q4. Furthermore, the company aims to bring online a massive 2-gigawatt facility in Texas by April 2026, which would significantly expand its AI hosting capabilities.
A Deep Dive Into IREN’s Valuation
IREN appears undervalued when compared to peers in the cryptocurrency mining space. It trades at a relative discount, despite more robust forward-looking expectations, such as the forecast for positive EPS.
Furthermore, the price-to-future-cash-flow ratio of 13.64x appears attractive when compared to the IT sector average of 19.15x, especially for a company executing a successful growth strategy in a high-demand market.
The asset value story is equally compelling. With potential annual revenue exceeding $714 million at full mining capacity, plus growing AI services revenue, the enterprise value-to-forward EBITDA multiple of 12.16x appears modest relative to the sector average of 14.43x, suggesting the company’s power infrastructure and renewable energy advantage may not be fully reflected in the current stock price.
Is IREN a Good Stock to Buy?
Wall Street has shown strong support for IREN’s transformation story, with analysts issuing seven Buy ratings, one Hold, and no Sell recommendations over the past three months. IREN’s average stock price target of $17.96 implies approximately 36% upside potential over the next twelve months.
JPMorgan recently upgraded IREN to an “Overweight” rating, naming it their top pick in the sector due to the company’s operational efficiency and compelling growth outlook. Meanwhile, Nick Giles from B. Riley raised his price target to $15, and Roth MKM boosted its target to $20, both highlighting IREN’s accelerated growth initiatives and strategic investments.
The recently oversubscribed $550 million convertible notes offering also provides additional validation of institutional investor confidence. Initially announced at $450 million, the offering was increased twice due to strong demand, demonstrating that the smart money wants exposure to the company’s growth story.
Final Thoughts on IREN
The company is currently undergoing a successful evolution from a Bitcoin miner into a diversified digital infrastructure provider with multiple revenue streams in a market with exceptional growth prospects.
Its financial picture looks promising — the balance sheet is solid, revenue is trending up, and it’s profitable again. The strategic pivot to AI infrastructure positions IREN to capitalize on a significant investment opportunity, while maintaining profitable Bitcoin mining operations.
The combination of exposure to growth in the evolving digital economy, solid financials, and relative undervaluation makes this a stock I remain bullish on.