Summary IREN’s stock surged to $60 as it transformed from a Bitcoin miner to a vertically integrated AI infrastructure utility. Fiscal 2025 revenue grew 168% to $501 million, with adjusted EBITDA up nearly 400% to $270 million and margins at 54%. The company expanded its AI Cloud fleet from 1,900 to 23,000 GPUs, targeting over $500 million in annualized AI Cloud revenue by 2026. With 2.9 GW of secured power at 0.035/kWh, IREN maintains one of the lowest-cost energy bases in the AI industry. IREN Limited ( IREN ) has achieved one of the most dramatic turnarounds in the digital infrastructure sector. Once written off as a Bitcoin mine, the company has transformed itself into a vertically integrated AI infrastructure giant. IREN stock going from $16 from my first bullish call to $60 indicates more than euphoria in the markets, and implies a re-rating of its very DNA. IREN now plays at the intersection of two short resources defining the AI decade, power and compute. With $501 million in FY2025 revenue and $270 million in EBITDA, it has transformed its mining cash flywheel into an internally funded moat driving one of North America’s largest expansions of GPUs. Despite its sharp bull run, IREN remains a buy on pullbacks, as its accelerating AI Cloud growth, low-cost power base, and expanding GPU capacity continue to outpace its valuation re-rating. Scaling Compute While the World Is Running Out of Power Fiscal 2025 results highlighted the revenue leverage in IREN’s business as revenue rose 168% year-over-year, adjusted EBITDA rose almost 400% , and margins hit 54%. With the shift in business mix to AI Cloud from Bitcoin mining, profitability will likely increase further. AI workloads are inherently power-dense and margin-intensive, and with average power prices at $0.035/kWh and no third-party colocation charges, incremental GPU additions could maintain high EBITDA margins. The rate of scaling of operations has been outstanding. Within a single year, IREN’s AI Cloud fleet expanded from 1,900 to 23,000 GPUs , 19,000 of which are NVIDIA B200 and B300 and more than 1,000 AMD MI350Xs. These deployments form the basis of an objective of more than $500 million annually in AI Cloud revenue by early calendar year 2026, a nearly 20 times increase in twelve months. Over 11,000 GPUs are already under multi-year contracts, locking in an estimated $225 million of recurring revenue by year end 2025. This contracted base provides near-term cash visibility while retaining pricing upside in a highly tightening GPU supply environment. FY25 Results Presentation Behind this growth is IREN’s 2.91-GW energy portfolio across Canada and the United States, of which 810 megawatts are already in operation. Its Canadian data centers in British Columbia gain world-class power usage effectiveness close to 1.1 based on inexpensive hydroelectric power, and its enormous Childress and Sweetwater facilities in Texas provide multi-gigawatt scale in energy-rich areas. Most importantly, IREN owns its buildings and does not lease, which provides unparalleled power autonomy, and margin control. FY25 Results Presentation These benefits make IREN a structural winner in the AI power economy. While hyperscalers fight over access to the grid and administrators discuss data center energy ceilings, IREN has already contracted the electrons that will power the next cycle of AI growth. Each new megawatt deployed directly equates to margin expansion, not cost escalation. While infrastructure cost escalation is the new taxation in a sector, IREN is practically immunised. Eventually, IREN’s rally constitutes the first nod from the market to its renaissance, but not its end. Now, the company finds itself at the nexus of energy, infrastructure, and intelligence, as a power utility as well as a digital compute platform. As the world has a short supply of GPUs and gigawatts, IREN’s control over both may well make it one of the AI decade’s landmark infrastructure compounders. Investing In Innovation And The AI Utility Model Birth Capital discipline to match its engineering. In October 2025, IREN issued $875 million of zero-coupon convertible notes due 2031 , which included a 42.5% conversion premium and a $120 capped call. The transaction essentially issued nearly a billion dollars of debt with no interest cost and minimal dilution, an uncommon achievement in a capital-intensive business. Along with single-digit lease financing on GPUs, IREN has designed something it calls synthetic equity with debt that acts like growth capital but compounds shareholder value instead of devouring it. This funding approach has engendered a negative-carry growth cycle. Bitcoin mining flows give the liquidity to fund GPU leases, which in turn increase capacity and prospective cash flow. As those AI assets build towards higher usage, they return capital quicker than it’s being deployed. It’s a snowballing cycle, a unique combination of digital coin monetization and real-world infrastructure scaling. It’s what distinguishes IREN from its rivals that it uses capital so effectively. While CoreWeave ( CRWV ) and other private players rely so much on equity dilution and venture debt, IREN growth capital fund supports itself organically, supplemented by mining profits and disciplined leverage. Even at a $17 billion market cap, IREN’s valuation falls behind in its peer category, which are venture-backed AI infrastructure companies that are listed and command higher revenue multiples and lower operating cash flow. What makes it exceptional is that it combines growth, profitability, and capital efficiency, placing it squarely on the cusp of a new asset class, an AI infrastructure utility. IREN’s Valuation Appears Rich, But It’s Worth Every Penny Of A New Age Of AI Infrastructure Supremacy IREN’s rise from $16 to $60 does not mark the end of the opportunity, but the beginning of a structural repricing. As the energy shortage emerges as the new oil shock and GPUs the new gold rush, IREN has positioned itself as among the few players who will be able to turn electrons into exponential profits. Its next page will not be written in hash rate or teraflops, but in megawatts, and between the margins and scale and scarcity. IREN’s valuation multiples are based on historical metrics, but they are a function of the company’s evolution from a cyclical Bitcoin mining company to a growth-oriented AI infrastructure provider. With an EV/sales of 35x and an EV/EBITDA of 88x, IREN quotes well above the sector median, but estimates reveal a different picture. On a projected FY2026 revenue of over $1.0 billion and EBITDA and possible FY2027 EBITDA of over $1.2 billion, forward multiples converge drastically, to EV/Sales below 8x and to EV/EBITDA around 15x, aligning more closely with capital-intensive infrastructure peers. This re-rating path relies on scaling its current 23,000-GPU fleet towards 60,000+ units . During the next 18–24 months, investors can anticipate valuation rationalization due to compounding cash flow and maturing AI deals. Data by YCharts Risks: Ambition Scales Meets Execution Reality Though IREN’s renaissance story is enticing, its aggressive growth brings various risks to the company, including both operational and financial. Its greatest near-term challenge rests in execution, as it must scale from leveraging 23,000 to over 60,000 GPUs in a variety of locations and do so while delivering liquid-cooled data centers, infrastructure, and networking. Any construction, delivery, or commissioning of GPUs may delay revenue recognition and stress near-term cash flows. IREN customer concentration also creates risk. A few AI customers are already the majority of its contracted revenue, and thus the company is exposed if demand slows or renewals are not successful. While GPU financing arrangements, normally 24 to 36 months, need to be tightly aligned with customer contracts to prevent mismatches in liquidity, IREN, having good non-dilutive financing and good balance-sheet flexibility, has strong balance-sheet flexibility. However, its leverage increases if cash conversion slows when it’s undertaking aggressive expansion. On the outside, Bitcoin volatility of prices still constitutes an indirect threat. Though growth is now AI-led, Bitcoin mining still provides significant cash flow for reinvestment. A sudden drop in prices of cryptos may limit liquidity. Last but not least, data centre energy use and cross-border GPU supply chain shifts in regulation may disrupt IREN’s cost leadership. Ongoing discipline in execution and diversification still constitute important de-risking of this hyper-growth phase. Final Take For investors, IREN is a very unusual combination of profitability, scalability, and scarcity leadership in the age of AI. With 23,000 GPUs installed, 2.9 GW of contracted power, and over $500 million AI Cloud ARR in sight by 2026, it is transforming into an AI infrastructure utility. With its zero-coupon debt and 0.035/kWh power prices, it builds a stranded moat. As gigawatts and GPUs become increasingly scarce, IREN’s leadership in both places makes it a generational compounder in the AI power economy.
