Bitcoin Miner to AI Cloud Sensation: Why Iris Energy (IREN) Stock Is Soaring in 2025

Iris Energy (IREN) Stock Performance and News Update as of September 24, 2025

Stock Price & Performance: Iris Energy (NASDAQ: IREN) is trading around $47 per share intraday on Sept 24, up about +13% on the day amid heavy trading ^[1]. The stock has gained roughly 50% over the past week alone, and is up a staggering ~269% year-to-date ^[2]. It recently notched a 52-week high in the mid-$40s (versus a 52-week low of $5.13) ^[3]. Market cap now exceeds $10 billion ^[4].
Surging Volume & Volatility: Trading activity in IREN has spiked well above average. The stock’s average daily volume is nearly 30 million shares ^[5], and options trading has exploded – on one recent day, contracts traded were almost 3× the typical volume with a bullish tilt (calls outpacing puts) ^[6]. Implied volatility is in the top quartile of the past year, reflecting the stock’s high volatility ^[7].
Latest Catalyst – AI Cloud Expansion: This week, Iris Energy doubled its AI cloud capacity to 23,000 GPUs, targeting >$500 million in annualized cloud revenue by Q1 2026 ^[8]. The company purchased $674M worth of NVIDIA and AMD chips to fuel this expansion ^[9]. This strategic pivot to high-performance AI data centers (alongside Bitcoin mining) has been a key driver of the stock’s rally.
Booming Financials: Iris reported record earnings for FY2025. Full-year revenue jumped to $501.0M (+168% YoY) with $86.9M net income (a swing from losses in FY2024) ^[10]. Last quarter’s revenue alone was $187M with an astounding $177M net profit ^[11], boosted by surging Bitcoin prices and initial AI cloud deals. The company now boasts >$1 billion in potential annual Bitcoin mining revenue under current conditions ^[12] ^[13], plus hundreds of millions in prospective AI cloud sales.
Crypto Market Tailwinds: Bitcoin’s price has skyrocketed above $110,000 this year, trading around $113K this week ^[14]. This crypto bull market (BTC hit ~$124K last month) provides a huge revenue tailwind for Iris’s mining segment. Iris’s breakeven cost to mine 1 BTC is only about $36K ^[15] thanks to low-cost renewable energy, so current Bitcoin prices translate to hefty profit margins. Broader sentiment is mixed in the short term (crypto Fear & Greed Index = 39, or “fear” ^[16]), but institutional adoption – e.g. new U.S. spot Bitcoin ETFs – is increasing ^[17], supporting the long-term outlook for miners.
Analyst Buzz & Upgrades: Wall Street is taking note of Iris Energy’s transformation. Arete Research just initiated coverage with a Buy rating and a $78 price target – about 87% upside from current levels ^[18] ^[19]. Roth Capital quadrupled its target to $82 (from $35) after the GPU expansion news, citing Iris’s improving visibility in AI cloud and potential for multiple expansion ^[20]. Several other firms raised targets in recent weeks (e.g. Canaccord to $42 ^[21] ^[22]; B. Riley to $29; Cantor to $41) ^[23]. Consensus prior to these moves was a “Moderate Buy” with an average target around $39 ^[24], a number now clearly poised to rise.

Below we delve into Iris Energy’s latest developments, its dual exposure to Bitcoin and AI, recent news from the past few days, and what experts predict next for this high-flying stock.

Market Performance: IREN Stock on a Tear

Iris Energy’s stock has been on a parabolic climb in 2025. After starting the year in the single digits, IREN is now hovering in the high-$40s, having nearly quadrupled year-to-date ^[25]. The rally accelerated in recent weeks as the company rolled out major announcements (discussed below). On September 24, shares spiked over 12% intraday to ~$47 on the back of bullish analyst commentary ^[26]. This adds to big gains earlier in the week – the stock jumped after a Monday press release and has logged a roughly 50%+ gain over the last 5 trading days.

Such rapid appreciation has brought heightened volatility. In fact, IREN has been trading with characteristics of a momentum tech stock: options implied volatility sits around 122 (90th+ percentile of the past year) ^[27], and one The Fly report highlighted “bullish flow” in the options market with 182,000 contracts traded in a single day (about 3× the norm) ^[28]. Calls have been outnumbering puts, signaling investors are positioning for more upside ^[29].

The 52-week range tells the story of IREN’s metamorphosis – a year ago the stock was languishing near $5, and as of this week it hit fresh highs around $44-$48 ^[30]. Iris Energy is now valued around $10–11 billion in market cap ^[31] ^[32], making it one of the larger players in the crypto-mining and data center space. Notably, despite this surge, the stock’s forward price-to-earnings multiple (based on recent earnings) is elevated (P/E ~70) ^[33], reflecting investors pricing in high growth expectations from the new AI initiatives.

Short-term traders should be aware that such swift gains can invite volatility. Technical indicators reached stretched levels during the run-up – for example, earlier this month IREN’s daily RSI hit ~80 (overbought territory), prompting some analysts to warn of a potential pullback or profit-taking ^[34]. Should a correction occur, chart watchers see potential support in the mid-$20s (the stock’s late-August consolidation zone) ^[35]. However, so far Iris has blown past every near-term hurdle as buying momentum remains strong.

Latest News Roundup: From Bitcoin Miner to AI Cloud Powerhouse

The big story driving Iris Energy this week is its bold expansion into AI cloud computing. On September 22, the company announced it doubled its GPU fleet to 23,000 – essentially pivoting a sizable portion of its data center capacity from Bitcoin mining toward serving artificial intelligence workloads ^[36]. Key details from that announcement:

Massive Hardware Investment: Iris purchased an additional 12,400 high-end GPUs (including ~7,100 NVIDIA Blackwell B300s, 4,200 B200s, and 1,100 AMD MI350X accelerators) for roughly $674 million ^[37]. This is a huge bet on AI – acquiring cutting-edge chips that are in high demand for training AI models and other compute-intensive tasks.
23,000 GPUs & $500M Revenue Goal: Once these units are deployed, Iris will have about 23K GPUs in its AI cloud. The company is now targeting over $500 million in annualized AI Cloud revenue by the end of Q1 2026 ^[38]. For context, management’s prior goal (as of late August) was $200–250M in AI run-rate by Dec 2025 ^[39] – so this new target doubles that, reflecting how quickly demand is ramping up.
Client Demand Locked In: Crucially, Iris notes that customer demand is outpacing global supply for AI compute, with clients increasingly willing to pre-contract capacity ahead of delivery ^[40]. In other words, big enterprises and AI firms are booking AI server capacity in advance, which helps de-risk Iris’s investment. The company even mentioned it’s in discussions regarding multi-thousand GPU clusters of NVIDIA’s next-gen Blackwell chips for future deployments ^[41] ^[42].
Where and How: The new GPUs will be installed at Iris’s Prince George campus in British Columbia, Canada ^[43]. This location has abundant low-cost hydroelectric power. Deliveries of the hardware will be staggered over the coming months, and as they come online, Iris expects to hit that >$500M ARR figure by Q1 ’26 ^[44]. Impressively, the Prince George site can ultimately support 60,000+ GPUs(Blackwell generation) with its available 160MW of power, indicating plenty of room for growth ^[45]. The company is also expanding in Texas (more on that shortly).
No Drop in Bitcoin Mining: Importantly, Iris is trying to balance its two verticals. Management stated that any temporary reduction in Bitcoin mining capacity (to reallocate power to GPUs) will be mitigated by redeploying mining rigs to other sites ^[46]. In essence, they can shuffle their ASIC miners around to keep Bitcoin production steady while growing the AI side of the house.

Company Co-CEO Daniel Roberts highlighted the significance of this move, saying “Doubling our fleet to more than 23,000 GPUs in just a few months highlights the strength of our vertically integrated platform and our ability to meet urgent, long-term demand. The shift toward pre-contracting ahead of delivery provides further momentum for the growth of our AI Cloud business.” ^[47]. This underscores Iris Energy’s new identity: not just a crypto miner, but a diversified operator of next-gen data centers for AI, crypto, and beyond.

In tandem with the AI news, Iris Energy’s traditional Bitcoin mining operations remain robust. The company is one of the world’s largest Bitcoin miners by capacity – currently running 50 EH/s of self-mining hashrate ^[48]. Thanks to its cheap energy, Iris can mine BTC at an estimated cash cost around $36,000 per coin ^[49]. With Bitcoin hovering 3× above that level, the mining segment is highly profitable right now, providing steady cash flow to help fund the AI expansion ^[50].

It’s worth noting a recent regulatory development too: Iris announced it secured NVIDIA’s “Preferred Partner” statusfor cloud service providers ^[51]. This could give it advantages in procuring scarce GPUs and technical support from NVIDIA – a valuable endorsement as it scales its AI cloud. The company also closed new financing dealsto lease these GPUs over 36 months (non-dilutive financing covering 100% of the hardware cost) ^[52], which means Iris is expanding rapidly without issuing new equity – a boon for shareholders.

Broader Context: Crypto Boom, Energy Edge, and Regulation

Iris Energy’s rise comes against a very favorable backdrop in both the cryptocurrency market and the data center/AI industry:

Bitcoin & Crypto Rally: Bitcoin’s price explosion in 2025 has lifted all boats in the mining sector. BTC is trading around $113k as of late September ^[53], roughly quadruple its price from a year ago. It did pull back slightly from an August peak (~$124k) ^[54], and week-to-week the crypto market has been choppy (BTC down ~2.8% this past week) ^[55]. Still, these levels are extremely lucrative for miners like Iris – the company indicated that at ~$115k BTC and current network difficulty, its 50 EH/s mining fleet could generate over $1 billion in annualized revenue on the Bitcoin side ^[56] ^[57]. That is an astonishing figure, and it helps explain the record earnings Iris just reported.The crypto sector is also seeing growing mainstream adoption. U.S. regulators have (finally) allowed spot Bitcoin ETFs, with major firms launching products – though interestingly, there were net outflows from some BTC ETFs this week as traders reposition ^[58] ^[59]. The overall crypto market cap is now around $4 trillion ^[60]. Regulatory sentiment is cautiously improving: for example, the CFTC is exploring tokenized assets in derivatives markets (called a potential “killer app” for crypto) ^[61] ^[62]. These developments indicate that crypto is becoming more integrated into traditional finance, which can support long-term demand (and price stability) for Bitcoin.One point of caution: the sentiment gauge (Crypto Fear & Greed Index) has ticked down to 39 (“Fear”) ^[63] ^[64] after being Neutral/Greedy earlier, suggesting some investors are nervous about near-term volatility. Macro factors (like interest rates or regulatory decisions) could still swing the crypto market in the short run. For now, though, Iris Energy enjoys a strong wind at its back from the Bitcoin boom.
Energy Market Dynamics: Iris Energy’s competitive advantage has always been its access to cheap, renewable power. The company is proudly 100% renewable-powered, mainly via hydroelectric sources in Canada and wind/solar in Texas ^[65]. This not only keeps costs ultra-low (power cost about $0.033/kWh in BC, among the world’s lowest) ^[66], but also insulates Iris from fossil fuel price swings and makes it more palatable to regulators and ESG-minded investors.In some regions, crypto miners have faced pushback over energy usage or carbon emissions, but Iris has preempted much of that by building in “renewable-rich, grid-connected regions” ^[67]. In fact, its expansion in Texas (Childress County and Sweetwater) is taking advantage of the massive wind and solar generation capacity there. Texas has become a hotspot for both Bitcoin mining and hyperscale AI data centers, due to abundant land and relatively lax regulation on power usage.Iris’s upcoming Sweetwater project is especially notable: this is a planned 2,000 MW (2 GW) mega-campus in Texas, scheduled to energize in phases (1,400 MW by April 2026, additional 600 MW by 2027) ^[68]. Sweetwater could dwarf Iris’s current operations and would be one of the largest data center sites in the world. The strategy is to use that site for AI data center hosting (colocation) as well as proprietary cloud, tapping into surging demand from big tech companies for AI compute. Canaccord analyst Joseph Vafi highlighted that Sweetwater 1 (the first 50MW phase of that project, near Abilene, TX) is “poised to benefit from increasing demand for AI data centers,” noting that Abilene has become a hub with major projects (like Microsoft-Nebius and OpenAI-Oracle) in the area ^[69]. Iris’s proximity to those developments could help it secure high-value tenants for its facilities ^[70]. Essentially, Iris is positioning itself as a landlord and operator for the AI boom, in addition to being an operator of its own Bitcoin/AI hardware.The fact that Iris is vertically integrating – owning the land, the power infrastructure, and the data centers – is a big plus. It can offer turnkey solutions to clients, whether they want to buy cloud services (GPU time by the hour) or lease space/power to run their own hardware. This diversified model (Bitcoin mining + AI cloud services + data center leasing) gives multiple revenue streams. It also means Iris can adjust to market conditions – e.g. if Bitcoin were to crash, it could devote more capacity to AI workloads, or vice versa if AI demand cools and crypto surges, it can pivot back. This flexibility makes Iris somewhat unique among peers.
Regulatory/Policy Update: Within Iris’s specific operations, there haven’t been negative regulatory surprises recently. In North America, jurisdictions like British Columbia did impose temporary moratoria on new crypto mining connections last year, but Iris’s projects were grandfathered in or already had power allocations. The company’s use of renewables likely puts it in a good light with policymakers aiming to encourage “clean” tech investments. Any future U.S. federal moves around crypto (such as mining tax proposals or environmental rules) bear watching, but for now nothing imminent threatens Iris’s operations. If anything, government incentives for AI and cloud infrastructure (for example, U.S. IRA clean energy credits or Canadian innovation grants) could indirectly benefit companies building data centers like Iris, but those are ancillary factors.One interesting note: Iris Energy’s Prince George site in BC is on track to be fully converted from Bitcoin mining to AI computing. Roth Capital’s analyst Darren Aftahi mentioned that Iris is “likely fully converting Prince George” to the GPU cloud business after this latest expansion ^[71]. This suggests regulators and the local grid operator have been supportive of Iris shifting its energy usage to AI workloads (which often carry a different regulatory profile than crypto mining). The bottom line is that Iris appears to be navigating the policy landscape well by aligning itself with trends (green energy, AI innovation) that governments favor, while de-emphasizing the more controversial aspect (energy-hungry crypto mining) over time.

Analyst Views: Upgrades Pour In as Iris Reinvents Itself

Wall Street’s sentiment on IREN has dramatically improved in the past quarter. Following the AI-cloud pivot, analysts are racing to update their models and price targets:

Arete Research (Sep 24): Initiated coverage with a Buy rating and a $78 price target ^[72]. Arete’s target implies they see +86% upside from current prices ^[73]. This bullish initiation on a Bitcoin miner-turned-AI-play underscores how attractive Iris’s growth story has become. (Arete’s coverage was part of a broader launch on crypto miners – they are clearly favoring those with AI exposure. In the same note, Arete reportedly gave Buy ratings to a few Bitcoin miners, with Iris being a top pick.)
Roth/MKM (Sep 22): Reacting to Iris’s GPU expansion, Roth Capital analyst Darren Aftahi made a bold upward revision – raising his price target to $82 from $35 and reiterating a Buy ^[74]. Aftahi was impressed by the company “again doubling GPU buys to 23K” and aiming for $500M+ ARR in AI cloud ^[75]. He acknowledged the uncertainty in Iris’s long-term revenue mix (crypto vs AI) but argued that as visibility improves and execution is achieved, Iris’s valuation multiples could expand significantly ^[76]. In other words, if Iris hits its targets, investors may start valuing it more like a high-growth tech/cloud company than a low-multiple mining company. Roth’s aggressive target is one of the highest on the street and helped draw attention to IREN mid-week.
Canaccord Genuity (mid-Sep): Canaccord’s Joseph Vafi has been positive on Iris and recently boosted his target to $42 (from $37) while maintaining a Buy ^[77]. In a detailed note, Vafi cited Iris Energy’s “strategic positioning and growth potential” – particularly highlighting the Sweetwater Texas data center project as a future catalyst ^[78]. With major AI players building nearby, “the increasing demand for AI data centers” in that region should benefit Iris, in his view ^[79]. He also pointed out that recent deals in the data center space have led to stock re-ratings for other companies, suggesting a “favorable market environment” that could similarly revalue Iris higher ^[80]. Vafi’s sum-of-parts valuation (combining the Bitcoin mining business and the GPU cloud business) underpins his confidence in Iris’s “future performance” and justifies the new target ^[81]. Notably, Canaccord’s $42 target was set when the stock was much lower; Iris has since surpassed that level, indicating that even Vafi’s revised model may prove conservative if Iris executes well.
Others: Back in late August, when Iris first signaled its AI ambitions during earnings, several analysts upped their targets: B. Riley raised from $22 to $29, Cantor Fitzgerald from $27 to $41, and BTIG from $22 to $32 – all reiterating Buy/Overweight ratings ^[82]. At that time (around $20–$25 share price), those targets seemed optimistic; Iris has since blown past most of them. We’re now seeing new “street-high” targets like the ~$80+ mentioned above. It’s worth mentioning that Jefferies and JPMorgan have been more cautious historically – e.g. JPMorgan had a Neutral rating and a $16 target as of July ^[83] (likely focusing purely on mining fundamentals). We’ll see if those holdouts revise their stances given the company’s transformed outlook.
Consensus: According to MarketBeat, as of earlier this week Iris Energy had 14 analysts covering it, with 11 Buys and 3 Holds, and a consensus price target of about $39.45 ^[84]. That consensus clearly lags the latest developments – newer targets have come in much higher, and the stock itself is already above $45. We should expect the consensus figure to get updated upward as the recent initiations (Arete) and upgrades (Roth, etc.) are factored in. The overall tone among analysts is that Iris Energy’s AI pivot could be transformative, unlocking a growth profile and valuation more akin to a tech infrastructure company than a traditional crypto miner.That said, not every analyst is drinking the Kool-Aid to the same degree. For example, Bernstein initiated coverage on Iris around mid-September with a Buy rating but a $20 price target ^[85] – a surprisingly low target relative to peers. This may reflect a more conservative approach, perhaps expressing skepticism about execution risks or future bitcoin price assumptions. It serves as a reminder that risks remain (execution, competition, volatility in crypto prices, etc.), and that some observers want to see more proof before assigning sky-high valuations. But the majority view leans bullish, given Iris’s strong balance sheet, recent profitability, and the clear trend of enterprises clamoring for AI computing capacity.

Historical Performance & Outlook

To put Iris Energy’s recent performance in perspective, consider a 12-month timeline: one year ago, the company was primarily known as an Australian-founded Bitcoin miner struggling with a crypto winter. Its stock was in the single digits after a tough 2022 for the industry. Fast forward to today, and Iris has reinvented itself as a leader in renewable-powered AI megacenters. This narrative shift – from a pure crypto play to a diversified digital infrastructure play – has been rewarded by the market. The stock is up roughly 800% from its 2022 lows, vastly outperforming not only the S&P 500 but also most crypto peers over that period.

Year-to-date 2025, IREN has soared about +269% ^[86] (by comparison, Bitcoin is up roughly ~250% YTD against the USD, and the NASDAQ index ~30% YTD). Much of Iris’s gain came in Q3 2025 as the AI strategy gained traction. In August, the company’s earnings and AI plans started the rally; in September, follow-through execution (GPU orders, partnerships) and external hype (AI mania, crypto strength) amplified it.

Looking ahead, investors will be watching a few key items:

Execution on AI Cloud: Iris must successfully deploy those 23k new GPUs and actually land customers to utilize them. The >$500M ARR figure is an internal target; management explicitly notes it’s not yet fully contracted and is based on certain pricing & utilization assumptions ^[87]. Achieving this by Q1 2026 will require scaling operations quickly and possibly adding more power/cooling infrastructure at Prince George on schedule. Any delays in GPU deliveries (supply chain issues) or slower uptake by clients could temper the growth trajectory. On the flip side, if demand is as red-hot as implied, Iris might beat that target – especially with additional capacity coming online in Texas by 2026.
Bitcoin Market Health: While Iris is evolving beyond mining, Bitcoin still contributes the bulk of current revenue. Thus, the sustainability of Bitcoin’s high price is crucial. If BTC remains around six figures or climbs further (some forecasts even see $150k+ in 2025), Iris’s mining profits will be enormous, providing capital for expansion or debt payoff. However, a severe downturn in crypto (due to macro factors or regulatory crackdowns) would negatively impact cash flows and could spook investors away from any stock connected to crypto. Iris’s breakeven of ~$36k BTC provides a cushion ^[88], but large swings in Bitcoin’s price will inevitably affect sentiment on IREN.
Competition and New Entrants: Iris Energy isn’t the only miner diversifying into AI hosting – rivals like Hive Blockchain and Riot Platforms have also announced plans to utilize some of their energy for GPU cloud computing. Additionally, traditional data center companies (e.g. Equinix, Digital Realty) and cloud giants (Amazon, Microsoft) are investing heavily in AI infrastructure. Iris will need to carve out a niche, potentially focusing on cost-sensitive, large-scale deployments given its cheap power. Its success could invite competition in regions like Texas (where land and renewables are plentiful). The company’s huge secured power capacity (2,910 MW across sites) ^[89] is a competitive moat, but execution in building out that capacity will be key.
Financial Discipline: With rapid growth comes the need for capital. Iris has been savvy in obtaining equipment leases and project financing. Investors will watch that debt levels remain manageable and that any equity dilution is avoided or minimal. The recent GPU purchase being 100% financed is a positive sign ^[90]. The company ended FY2025 with solid financials (over $86M net income) ^[91], but as it spends on expansion, margins could fluctuate. So far, management has balanced growth and profitability well – continuing to do so will build credibility.

In summary, Iris Energy has ridden two of the hottest trends of 2025 – Bitcoin and AI – to become one of the year’s stock market darlings. Its share price reflects big expectations: investors are effectively valuing Iris not just on current mining profits, but on future AI cloud revenues that could rival those of mid-sized tech firms. The next few quarters will be telling. We will see Iris transitioning from planning to execution on its grand vision of powering “the future of Bitcoin, AI and beyond” with green energy ^[92].

For now, the momentum is clearly on Iris Energy’s side. The company’s latest moves have “highlighted [its] growth outlook” and led analysts to “raise their price targets, highlighting the company’s promising future in the AI sector.” ^[93]. If Iris delivers on its promises, 2025 could be just the beginning of a larger growth story. Of course, with high reward comes high risk – but at this moment, Iris Energy has firmly captured the market’s imagination as a bitcoin miner turned AI infrastructure play in the right place at the right time.

Sources:

MarketBeat – “IREN… Coverage Initiated by Arete Research” (Sept 24, 2025) ^[94] ^[95]; IREN Up 186% YTD on AI Pivot ^[96] ^[97]; Company earnings release ^[98] ^[99].
GlobeNewswire – Iris Energy Doubles AI Cloud to 23k GPUs, >$500M ARR Target (Sept 22, 2025) ^[100] ^[101]; FY25 Results: $501M revenue, $86.9M net income (Aug 28, 2025) ^[102].
TipRanks/TheFly – Bullish options flow, shares up 12.8% ^[103]; Arete initiation $78 Buy ^[104]; Roth Capital $82 target hike ^[105]; Canaccord on AI data centers/Sweetwater ^[106] ^[107]; Auto-news on stock uptick from 23k GPUs ^[108].
CryptoNews – Crypto Market Update Sept 24, 2025: Bitcoin ~$113K, Fear & Greed Index 39 ^[109]; market cap ~$4T ^[110]; BTC support/resistance levels ^[111].