Iris Energy Transitions From Mining to AI Data Centers, Attracts Analyst Attention

Sydney, Australia – Iris Energy, now known as IREN Ltd., has dramatically shifted its focus from cryptocurrency mining to high-performance computing (HPC) and AI data centers. Founded in 2018, the company has built its reputation on green mining but is pivoting towards a promising market opportunity in AI-driven services.

This transformation has captured Wall Street’s attention, especially as IREN’s stock has surged over 500 percent this year, with analysts predicting price targets as high as $82. The company’s new strategy leverages a vertically integrated model, allowing it to own its sites, control renewable energy contracts, and build its own data centers.

IREN projects a revenue of $501 million for fiscal year 2025, reflecting a whopping 168 percent growth compared to the previous year. The company has also expanded its fleet of AI-capable GPUs to 23,000 Nvidia chips, aiming for an annual revenue run rate of $500 million by the close of this year.

“This strategy addresses the halving problem faced by miners, where rewards decrease every four years, by tapping into the burgeoning AI market,” explained an industry analyst. Hosting AI workloads can yield two to three times more revenue per megawatt compared to traditional mining.

IREN’s commitment to renewable energy makes it especially appealing to clients focusing on sustainability compliance. However, reactions from analysts have varied. Bernstein‘s Gautam Chhugani recently raised his price target to $75, while Roth Capital set a more bullish appraisal at $82, forecasting significant revenue growth driven by IREN’s GPU expansion.

Nonetheless, challenges persist; J.P. Morgan‘s Reggie Smith downgraded IREN’s stock to underweight, cautioning that the current valuation may already factor in optimistic growth from AI services. Recent earnings reported only $2.7 million in cloud revenue for Q2 FY25, demonstrating the hurdles ahead in achieving projected targets.

As the company prepares to attend the North American Summit on October 9-10, 2025, in Dallas, it faces competition from both established tech giants and emerging miners. Nevertheless, with established infrastructure and a forward-looking strategy, IREN is set to become a significant player in the AI landscape if it successfully executes its ambitious plan. Analysts will closely monitor the company’s ability to navigate through the complexities of this market transition.