IREN (IREN), one of the largest self-operated Bitcoin miners in the U.S., is capturing Wall Street attention with its pivot into AI cloud infrastructure.
Bernstein analysts raised their price target on IREN to $75 from $20, indicating roughly 80% upside, while maintaining an outperform rating. The firm cited IREN’s strategy of building its own AI cloud business rather than relying solely on co-location agreements with partners such as CoreWeave (CRWV).
IREN shares have already surged, trading more than eight times higher than their 52-week low of $5.13 in April and up 365% year-over-year.
Despite early skepticism about executing a capital-intensive data center build-out and competing with AI cloud providers linked to hyperscalers and Nvidia (NVDA), Bernstein views the AI pivot as credible.
IREN is guiding for rapid growth, projecting $500 million in annual recurring revenue by Q1 2026, supported by 23,300 GPUs, up from roughly $14 million in Q1 2025.
The company retains flexibility through its 3-gigawatt power portfolio, balancing Bitcoin mining and AI workloads to maximize revenue per megawatt, according to Bernstein analysts led by Gautam Chhugani.
Its 50 EH/s mining operation is expected to generate $600 million in annualized EBITDA at current Bitcoin prices, which helps fund its AI expansion.
Bernstein has adopted a sum-of-parts valuation, assigning 87% of enterprise value to AI cloud and co-location potential at IREN’s 2GW West Texas site, with the remaining 13% attributed to Bitcoin mining.
At the revised target, IREN would trade at $7.5 million per megawatt (MW), above other AI-focused miners but still below established data center peers like CoreWeave, suggesting further potential for multiple expansion.
