Bitcoin mining company IREN is making waves in the cryptocurrency world, thanks to its ambitious push into artificial intelligence infrastructure—a move that has led Canaccord Genuity to hike its price target for the company by a staggering 60%, upping it from $24 to a dazzling $37. This announcement, made in a recent research report, has already had a noticeable effect on IREN’s stock, which saw a 25% uptick in early trading, bringing shares to $28.75.
A Dual-Focused Strategy
IREN’s latest quarterly results reveal a company firing on all cylinders. The mining division alone has achieved an annualized revenue run rate exceeding $1 billion. With an impressive 50 exahash per second (EH/s) of capacity, IREN boasts one of the most efficient fleets in the industry, utilizing just 15 joules per terahash (J/TH) on 3.5-cent/kWh power. This translates into a cost of $36,000 to mine a single bitcoin—comfortably below current market prices. In numbers, the mining revenue for the quarter was a robust $187.3 million, marking a 33% increase sequentially. As for adjusted EBITDA, it surged by 46% to hit $121.9 million.
Meanwhile, the AI segment of IREN’s business is not sitting idly by. The company has quadrupled its hashrate and expanded power capacity by another megawatt, bringing the total to 3 MW. With further growth anticipated throughout fiscal 2025, IREN’s AI strategy seems to be gaining momentum. This expansion is underscored by IREN’s recent designation as an NVIDIA preferred partner, a coup that coincided with the acquisition of an additional 2,400 GPUs. This mirrors the strategic moves seen in other industry players, such as Hut 8’s 1.5GW expansion plans, which have similarly aimed to boost energy capacity and enhance operational efficiency.
Setting the Stage for Greater Heights
According to Joseph Vafi and his team of analysts at Canaccord, IREN’s trajectory is not just promising—it’s compelling. With 2,910 MW of secured power capacity and some of the lowest all-in cash costs in the industry, the company appears poised to become one of the largest and most efficient publicly listed miners, positioned well for high-performance computing opportunities. This is reminiscent of Benchmark’s recent analysis of Hut 8, where similar strategies have been highlighted as key drivers for growth in the mining sector.
Moreover, the mining landscape itself is evolving, and IREN seems well equipped to navigate these changes. The hashrate, which measures the total computational power for mining and processing transactions on a proof-of-work blockchain, is a key indicator of competition and mining difficulty. IREN’s rapid increase in this area suggests a significant competitive edge—one that might be difficult for others to replicate quickly.
Navigating the Crypto Waters
However, as with any venture into the volatile world of cryptocurrencies, risks abound. Market conditions can shift rapidly, and while IREN’s costs are well below market levels now, any substantial change in bitcoin’s price or mining difficulty could impact that advantage. The company’s expansion into AI also presents challenges, as the field is highly competitive and fraught with technological hurdles.
Yet, the potential upside is alluring. As IREN continues to forge partnerships and expand its capabilities, it raises questions about how far this dual-focused strategy can take them. Will they become a dominant force in both bitcoin mining and AI infrastructure? Or will market fluctuations and technological challenges temper their ambitions?
IREN’s recent successes suggest a promising path ahead, but only time—and perhaps a bit of market luck—will tell if they can sustain this momentum. As we move further into 2025, all eyes will be on IREN to see if they can deliver on the high expectations set by their recent achievements.
Source
This article is based on: Bitcoin Miner IREN’s AI Push Gains Momentum, Price Target Hiked 60% to $37: Canaccord
Further Reading
Deepen your understanding with these related articles:
- Bitcoin miner Hut 8 announces 1.5GW expansion in the US, stock rises 10%
- The Protocol: Bitcoin Mining Faces New Challenges as Power Costs Eat Profit
- Bitcoin Mining Faces ‘Incredibly Difficult’ Market as Power Becomes the Real Currency
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
