IREN (IREN), a leading self-operated Bitcoin (BTC) miner in the United States, is distinguishing itself from competitors, garnering significant attention from Wall Street.
Analysts at Bernstein have significantly increased their price target for IREN to $75, up from $20, forecasting approximately 80% upside potential. This revision reflects the company's strategic shift to develop its proprietary AI cloud infrastructure, moving beyond reliance on co-location agreements with partners such as CoreWeave (CRWV).
IREN's stock has already experienced substantial growth, surging more than eight times from its 52-week low of $5.13 recorded in April. Year-over-year, the shares have gained an impressive 365%.
Initially met with skepticism, Bernstein now views IREN's pivot towards AI as a credible strategy. The broker acknowledges the company's potential to successfully execute a capital-intensive data center expansion and compete effectively against AI cloud providers aligned with hyperscalers and Nvidia (NVDA).
According to the report, IREN projects rapid expansion, targeting $500 million in annual recurring revenue by the first quarter of 2026, supported by 23,300 GPUs. This is a substantial increase from an estimated $14 million expected in Q1 2025.
Beyond its AI ambitions, IREN maintains operational flexibility through its 3 gigawatt (GW) power portfolio. The company strategically balances Bitcoin mining and AI workloads to optimize revenue per megawatt, as noted by Bernstein analysts led by Gautam Chhugani.
The analysts estimate that IREN's 50 EH/s mining operation generates approximately $600 million in annualized EBITDA at current Bitcoin prices, providing crucial funding for its AI business expansion.
Bernstein has adopted a sum-of-the-parts valuation model for IREN, attributing 87% of the enterprise value to the AI cloud and co-location potential at its 2GW site in West Texas. The remaining 13% is derived from its established Bitcoin mining operations.
At the new price target, IREN would be valued at $7.5 million per megawatt (MW). While this valuation exceeds that of other miners focused on AI, it remains considerably below established data center peers like CoreWeave, indicating potential for further multiple expansion.