Bitcoin mining and data center company IREN Limited (IREN) has announced ambitious expansion targets alongside a $1 billion at-the-market facility to support its general corporate operations. IREN plans to increase its capacity to 57 EH/s by the second half of 2025 as part of a significant business update. Additional growth initiatives include installing direct-to-chip liquid cooling systems in existing data centers to facilitate rapid scaling for cloud and colocation opportunities and advancing a multi-gigawatt data center development pipeline. IREN is also taking steps to construct a 1,400 MW substation at Sweetwater, which is anticipated to be operational by April 2026.
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However, the company’s shares have been caught up in the market’s volatile reaction to DeepSeek, a Chinese startup that has disrupted various sectors with its open-source AI platform. The model’s development speed and remarkably low production cost starkly contrast the billions spent on AI models and data center infrastructure. Consequently, the market has experienced a decline in stock values across the affected sectors, including crypto mining, as investors reassess the cost-effectiveness of pricey AI developments.
IREN Has Ambitious Expansion Plans
IREN Limited specializes in data centers and electrical infrastructure for Bitcoin mining and provides High-Performance Computing (HPC) solutions, including Al cloud services. The company has demonstrated a strong commitment to sustainable operations by utilizing 100% renewable energy resources.
The company has expanded its Graphics Processing Unit (GPU) capacity by adding 1,080 NVIDIA H200 GPUs to its existing pool of 816 NVIDIA H100 units. It is set to deploy the NVIDIA Blackwell GB200 in its Prince George and Childress data centers. Progress is noted in its 1.4GW data center project, with the target energization date moved up to April 2026 from October 2026.
The company’s expansion is not limited to hardware; it also includes an increased land holding of 800 acres, totaling over 1,300 acres. IREN is developing this land for additional Bitcoin mining and HPC/AI pathways, with expressions of interest coming from hyperscalers and other parties.
IREN Limited has announced a new $1 billion at-the-market facility to further advance its corporate agenda. The company plans to increase its capacity to 57 EH/s by the second half of 2025 and is on track to achieve 50 EH/s by the first half of the year. IREN is also installing direct-to-chip liquid cooling systems in its existing data centers to enable rapid expansion for cloud and colocation opportunities. The company advances its construction project at Sweetwater, which includes a 1400MW substation and electrical build-out expected to be completed by April 2026, and developing a multi-gigawatt data center pipeline to enhance their limited power and land resources portfolio.
Record Revenue and Hardware Profit
Through the end of December, the company reported strong results for the month. It mined 529 Bitcoins, raising the total to 3,984 for 2024, and made a hardware profit of $40 million. The year-end target of 31 EH/s exceeded the original 20 EH/s goal, leading to record revenue and hardware profits. Revenue surged 60%, hitting $52.1 million, driven by increased hashrate and Bitcoin prices, supported by low power costs at Childress, yielding a 77% hardware profit margin. It aims for 50 EH/s computational power by mid-2025 and is negotiating more AI and HPC opportunities, utilizing 1,896 NVIDIA GPUs. On the corporate side, the company operated 510MW by month-end, planning to reach 810MW by H1 2025.
Valuation Improving
Despite the recent price drop, the stock is up 125% over the past year. It trades in the upper half of its 52-week price range of $3.56 – $15.92. The price decline has brought the P/S ratio down to 6.31x, which still sits above the Information Technology sector average of 3.27x.
Analysts following the company have been bullish on IREN stock. Based on the recent recommendations of 12 analysts, Iris Energy is rated a strong buy overall. The average price target for IREN stock is $20.55, representing a potential upside of 103.87% from current levels.
IREN in Review
IREN Limited has charted a course of ambitious expansion, supported by a new $1 billion at-the-market facility. It aims to increase capacity to 57 EH/s by the latter half of 2025, driven by strategic initiatives such as implementing direct-to-chip liquid cooling systems and developing a multi-gigawatt data center pipeline. Despite the market volatility caused by disruptive AI platforms like DeepSeek, IREN is positioned to continue making significant strides. Despite the current market climate, IREN’s multifaceted expansion and operational achievements certainly make it a company to watch.
