How IREN Is Cashing In on the AI Data Center Boom
In late 2024, an Australian Bitcoin (BTC +1.95%) miner, Iris Energy, rebranded as IREN (IREN +3.76%) and transformed into an AI infrastructure company. Since that rebranding, IREN’s stock has rallied more than 270%.
Why did IREN’s stock skyrocket?
As IREN, the company used all of its capital, logistics, and power infrastructure to expand its AI and high-performance computing (HPC) data centers rather than its Bitcoin mining operations. It now provides over 800 MW of capacity through its four data center campuses in North America.
Image source: Getty Images.
Last November, it signed a 5-year, $9.7 billion AI cloud services contract with Microsoft (MSFT -3.24%). This May, it signed a $3.4 billion AI cloud services contract with Nvidia. In July, it signed a $2.8 billion wave of multi-customer AI cloud contracts, in which its customers were required to prepay approximately 45% of the GPU capex. Through those mega-deals, IREN expects its annualized revenue run rate (ARR) to exceed $4 billion in 2026.
Today’s Change
(3.76%) $1.66
Current Price
$45.72
Key Data Points
Market Cap
Day’s Range
$43.87 – $46.59
52wk Range
$17.22 – $76.87
Volume
29M
Avg Vol
45.8M
Gross Margin
19.60%
From 2025 to 2028, analysts expect IREN’s revenue to surge from $510 million to $6.20 billion, as its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) jump from $270 million to $4.95 billion. With an enterprise value of $17.59 billion, it looks reasonably valued at 5 times its estimated adjusted EBITDA for 2028 — so it could still be a great play on the ongoing expansion of the AI data center market.
Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and Microsoft. The Motley Fool has a disclosure policy.
