In the wake of Donald Trump’s election win, the crypto market has experienced an unprecedented surge, with Bitcoin’s value crossing $90,000 for the first time. The Trump administration’s eagerly-awaited pro-crypto stance and the speculated relaxing of regulations have paved the way for optimism in companies like Iris Energy (IREN), a Bitcoin miner leveraging 100% renewable energy. The enthusiasm has helped drive the stock up over 41% in the past month.
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Iris Energy’s operational expansion, particularly in AI Cloud Services, and its accelerated Bitcoin mining, backed by increased operating hashrate and soaring Bitcoin prices, have the company well-positioned for further upside. Investors looking for crypto mining exposure may find this a compelling option.
Iris Energy Pushing the Capacity Envelope
Iris Energy specializes in creating and operating data centers and electrical infrastructure for Bitcoin mining. The firm focuses on sustainable Bitcoin mining, utilizing 100% renewable energy sources. In addition to cryptocurrency mining, the company’s infrastructure is adept at handling AI cloud services and other high-power computing needs.
Iris’ AI Cloud Services division is projected to generate an estimated $32 million annual hardware profit by 2024, accounting for about 10% of the company’s total earnings. The company’s GPU (Graphics Processing Unit) capacity is close to full utilization, with its 816 NVIDIA H100 GPUs almost fully deployed. The company also plans to introduce 1,080 NVIDIA H200 GPUs to boost its AI capacity in Q4 2024. Also, there is a significant opportunity for scalability, as AI Cloud Services currently employs less than 0.5% of the total data center capacity.
Advancements in GPUs and Data Center Expansion
In addition to these developments, the company is designing and procuring next-generation GPUs, including the NVIDIA Blackwell GB200, which will be deployed in its Prince George and Childress data centers. Iris’ 1.4GW data center project also shows significant progress, with the target energization date advanced to April 2026 from the initial October 2026.
The company is working with an EPC contractor to develop its high—and medium-voltage substation infrastructure and is in the process of acquiring various essential electrical items to support substation capacity. Its land holdings have also increased with the addition of 800 acres, bringing the total to over 1,300 acres. Potential plans for this land include Bitcoin mining and HPC/AI pathways, with interest already shown from hyperscalers and other parties.
Recent Results
In October, the company successfully mined 439 Bitcoins, driving significant growth in its monthly revenue, which increased 32% to $28.2 million. This surge is primarily due to increased operating hashrate, which peaked at 21 EH/s, and a notable rise in Bitcoin prices. The company is on track to reach an operating hashrate of 31 EH/s by the final quarter of 2024. Electricity, the most significant cost for Bitcoin mining operations, saw a 12% reduction per Bitcoin mined, driven by an increased contribution from the Childress operation center, which offers lower unit electricity costs.
What Is the Price Target for IREN Stock?
The stock has been on a volatile (beta of 2.6) upward trajectory, climbing over 232% in the past year. It trades in the upper half of its 52-week price range of $2.79 – $15.75 and shows positive price momentum as it trades above the 20-day (10.27) and 50-day (9.46) moving averages. The P/S ratio of 5.9x suggests it trades at a premium to peers in the Financial Services sector, where the average P/S ratio is 2.275x.
Analysts following the company have been bullish on the stock. For example, Roth/MKM analyst Darren Aftahi recently reiterated a Buy rating with a $14.00 price target on the shares, noting the company has multiple monetization options, including BTC, HPC/ AI, and interest from hyperscalers.
Based on nine analysts’ recent cumulative recommendations, Iris Energy is rated a Strong Buy overall. The average price target for IREN stock is $15.50, representing a potential upside of 45.27% from current levels.
IREN in Review
Iris Energy is riding the Bitcoin wave. Strategic expansion into AI Cloud Services and accelerated Bitcoin mining—underpinned by an increased operating hashrate and rising Bitcoin prices—place the company in a prime position to enjoy further growth. Record Bitcoin mining and revenue growth, combined with a promising price target, make Iris Energy a compelling choice for investors seeking exposure in the crypto mining sector.
