IREN Stock Soars: Bitcoin Mining Firm Surges on Wall Street AI Cloud Optimism
John: Hey there, folks! I’m John, a veteran writer for Blockchain Bulletin, where I break down the exciting world of Web3, virtual currencies, and blockchain in simple, everyday language. Today, we’re diving into the skyrocketing story of IREN, a Bitcoin mining company that’s pivoting to AI cloud services and making waves on Wall Street. For readers who want a full step-by-step guide on navigating crypto exchanges amid all this buzz, you can also check this exchange guide.
Lila: Hi everyone, I’m Lila, John’s curious assistant here to ask the questions you’re probably thinking! So, John, what’s all this hype about IREN? Is it just another Bitcoin miner, or is there something bigger going on with AI?
What is IREN and Why the Buzz?
John: Great question, Lila. IREN, or Iris Energy Limited, is an Australian-based company that started in Bitcoin mining back in 2018. Right now, as of 2025-09-25, their stock has surged over 530% in just six months, hitting all-time highs, thanks to their smart shift into AI cloud computing. Analysts are loving it—Bernstein even raised their price target to $75, citing the potential for massive revenue from AI expansions.
Lila: Wow, 530% sounds huge! But what’s “AI cloud computing” in simple terms? Is it like storing photos in the cloud, but for smart robots?
John: Haha, close enough—think of it as super-powered data centers that handle heavy AI tasks, like training models for chatbots or image generators. IREN is using their mining infrastructure to power this, and it’s paying off big time. (And no, it won’t make your phone’s cloud any smarter overnight!)
Background on Bitcoin Mining and the Shift to AI
John: In the past, companies like IREN focused on Bitcoin mining, using massive computers to solve puzzles and secure the blockchain, earning Bitcoin as a reward. Founded in 2018, IREN ramped up to 50 exahashes per second (EH/s) by mid-2025. But with Bitcoin’s halving event on 2024-04-19 reducing rewards, many miners are diversifying.
Lila: Exahashes? That sounds like a sci-fi term. Can you explain it like I’m five?
John: Sure thing— an exahash is just a measure of computing power, like how many calculations per second your setup can handle. Imagine a billion billion guesses in a giant guessing game; that’s one EH/s. IREN announced on 2025-03-31 they’d pause some mining expansions to focus on AI data centers instead, reallocating capital for better profits.
Lila: Got it! So, why pivot to AI now?
John: The AI boom is exploding—demand for GPU-powered cloud services is through the roof. IREN’s move positions them to tap into this, blending their renewable energy expertise from mining sites in places like British Columbia.
Recent Financial Wins
John: Let’s talk numbers. On 2025-08-29, IREN reported their first full-year profit for fiscal 2025: a net income of $86.9 million, swinging from a $28.9 million loss the year before. Revenue hit a record $501 million, with adjusted EBITDA surging to $269.7 million—nearly five times the previous year’s figure.
Lila: EBITDA? Another jargon alert! What’s that mean for everyday investors?
John: It’s earnings before interest, taxes, depreciation, and amortization—a way to measure core profitability without the extras. Think of it as your paycheck before bills and taxes. This success came from expanding mining capacity and dipping into AI, with shares climbing in pre-market trading that day.
John: In August 2025 alone, they mined 668 Bitcoin, generating $76.7 million in revenue, and boasted a 98% profit margin on their AI cloud services. (Talk about striking gold—or should I say, digital gold?)
AI Cloud Expansion Details
John: Looking at the present, IREN is aggressively expanding their AI capabilities. They’re planning to deploy 10,900 NVIDIA GPUs by December 2025, which could add $200 million to $250 million in annualized revenue. They’ve secured $200 million in non-dilutive financing for GPUs and aim for over 60,000 GPU capacity across their British Columbia campuses.
Lila: NVIDIA GPUs—I’ve heard of those for gaming. How do they fit into AI cloud?
John: Exactly, these are high-powered graphics cards that excel at parallel processing, perfect for AI training. IREN’s building their own AI cloud vertical, unlike competitors who opt for partnerships. As of now, this self-funded growth has analysts raving, with the stock soaring on 2025-09-24 amid upgraded targets.
John: Here’s a quick list of key expansion milestones:
- Reach 52 EH/s mining capacity in the coming months (announced 2025-03-31).
- Expand to 10,900 GPUs by end of 2025, boosting AI revenue.
- Secure 2.75 GW of power for future data centers, positioning as a major cloud provider.
- Aim for $500 million annual AI revenue by early 2026, per Bernstein analysts.
Risks and Safeguards in This Shift
John: No story is without risks. Bitcoin’s price volatility could impact mining profits—remember the crash in 2022? Energy costs and regulatory changes in places like the US or Australia might pose challenges.
Lila: Yikes, that sounds risky. How is IREN safeguarding against that?
John: They’re using 100% renewable energy, which helps with sustainability regs, and diversifying into AI reduces reliance on crypto. As of 2025, they’ve got strong cash reserves from profits to fund expansions without heavy debt.
Looking Ahead: Future Developments
John: Peering into the future, IREN could become a powerhouse in AI infrastructure. By early 2026, their AI cloud might deliver $500 million in annual revenue, analysts say. With Bitcoin halvings every four years, this pivot ensures long-term growth.
Lila: Exciting! Any tips for readers interested in this space?
John: Stay informed via trusted sources like CoinDesk or official IREN updates. Remember, crypto and stocks fluctuate—do your homework. (And if you’re mining at home, don’t forget to ventilate; those rigs get hotter than a summer barbecue!)
FAQs on IREN and AI-Mining Crossover
John: To wrap up the basics, here are some common questions.
Lila: Yeah, like: Is IREN a good buy right now?
John: I can’t give financial advice, but keep an eye on their quarterly reports. Another one: How does AI cloud differ from traditional mining? It’s about renting out compute power for AI tasks versus solving blockchain puzzles.
Lila: One more: When did IREN go public?
John: They listed on NASDAQ in 2021-11-17, and since then, they’ve evolved rapidly.
John: Well, folks, that’s the scoop on IREN’s impressive surge—from Bitcoin mining roots to AI cloud stardom. It’s a prime example of how crypto firms are adapting to new tech waves, potentially setting the stage for more innovation in 2026 and beyond. And if you’d like even more exchange tips to trade stocks like IREN, have a look at this global guide.
Lila: Thanks, John—that makes the world of mining and AI feel a lot less intimidating. Remember, stay curious and informed, everyone!
This article was created using the original article below and verified real-time sources:
- IREN Stock Soars: Bitcoin Mining Firm Surges on Wall Street AI Cloud Optimism
- Bitcoin Mining News: IREN Post First Full-Year Profit, Shares Rise
- Bernstein raises Iren stock price target to $75 on AI cloud expansion
- IREN Expands AI Cloud to 10.9K NVIDIA GPUs, Mines 668 BTC in August