IREN’s Dual-Thrust Strategy: Fueling AI Growth While Bitcoin Pays the Bills

IREN (formerly Iris Energy) is executing a bold transformation—from being known as a Bitcoin miner to emerging as a serious contender in AI cloud infrastructure. This strategy holds several key implications:

• Financial Turnaround with Dual Engines
  • In Q4 2025, IREN posted a net profit of $0.70 per share (reversing from a prior year's loss) and delivered $187.3 million in revenue—a 228% year-over-year increase. Bitcoin mining remains the backbone, contributing $180.3 million and boasting a 400% capacity increase to 50 EH/s.
  • Over the full fiscal year, revenue surged to $501 million (up 168% YoY) with net income of $86.9 million, a stark contrast to losses in FY 2024. 

• Rapid AI Infrastructure Build-Out 
  • The company expanded its AI cloud by installing 1,900 NVIDIA H100 and H200 GPUs (a 132% YoY increase), while unveiling plans to acquire 2,400 more (B300 and GB300)—bringing total GPU count to 10,900. 

• Strategic Edge Through NVIDIA Partnership 
  • IREN secured NVIDIA Preferred Partner status, improving access to high-demand hardware and expanding its AI credentials. J.P. Morgan analysts praised IREN’s proactive scaling and go-to-market preparation for AI infrastructure.
  • Its GPU investments—totaling around $361 million—are aimed at capturing rapidly growing enterprise AI demand. 

• Analyst Confidence and Revenue Outlook 
  • Analysts are bullish: Macquarie raised its price target to $33 from $20, recognizing IREN’s AI-driven revaluation. Other firms like Cantor Fitzgerald and B. Riley also hiked targets, projecting $200–250 million in annualized AI Cloud revenue by year-end.
  • IREN’s operations are underpinned by strong fundamentals—2,910 MW of grid-connected power and 810 MW of data center capacity—further enabling its dual-service model.