Bitcoin mining stocks, including Iren (IREN), Bitfarms (BITF), CleanSpark (CLSK), and TeraWulf (WULF), rallied 5.4%, 15.8%, 5.1%, and 7.5%, respectively, on Friday. The upside came after Bernstein reported that Bitcoin miners are surprisingly emerging as major players in the AI infrastructure boom.
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Five-star analyst Gautam Chhugani noted that the rising demand for power from AI and other digital workloads has made access to the electricity grid the biggest hurdle for new data center growth.
Also, he believes Bitcoin miners already have a massive, ready-made power supply as they secured large contracts for renewable energy years ago. As a result, this existing infrastructure makes miners “attractive partners for AI cloud providers,” he said.
Bernstein Crowns IREN Stock as Top Pick
Chhugani has named IREN as his “top pick” among Bitcoin miners, citing the company’s “deep data center expertise” and “multiple strategic pathways for a full-scale AI pivot.” He reiterated a Buy rating on IREN stock with a price target of $75.
The analyst said IREN’s 3 gigawatt power portfolio gives it several options to grow its AI cloud business, such as building its own GPU cloud, leasing power to big tech firms, or using a mix of both.
At the same time, he pointed out that IREN’s Bitcoin mining is highly profitable, with its computing power up more than 200% in the past year and a low cost of about $36,000 per Bitcoin. With Bitcoin trading near $120,000, IREN is generating about $1.1 billion in annual revenue and $650 million in adjusted EBITDA.
Overall, Chhugani believes IREN is well-positioned to capitalize on its power flexibility, making it a strong player in both crypto and AI infrastructure.
Is IREN a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on IREN stock based on eight Buys, two Holds, and one Sell assigned in the past three months. Further, the average IREN price target of $52.63 per share implies 19.55% downside risk.
