Iren Limited (IREN 0.08%) has emerged as one of the most explosive growth stories of 2025, with shares surging 221% over the past six months and 68% in just the last 30 days. The company's $7.2 billion market cap might seem stretched for a business primarily known for Bitcoin mining just a year ago.
But Iren's aggressive pivot to artificial intelligence (AI) infrastructure has transformed it into something far more valuable: a picks-and-shovels play on the AI gold rush. Here's why the stock still scans as a bargain, despite its massive rally.
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The transformation from crypto to AI infrastructure
Iren's fiscal 2025 results tell the story of a company in rapid metamorphosis. Revenue exploded to $501 million, up 168% year-over-year, while net income reached $86.9 million -- a stunning reversal from the $28.9 million loss in FY24. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) soared 395% to $269.7 million. These aren't the numbers of a struggling Bitcoin miner; they're the metrics of a company capturing explosive demand for AI computing power.
The real story lies in Iren's AI cloud expansion. The company currently operates 1,900 NVIDIA graphics processing units (GPUs), up 132% from last year, with plans to reach 10,900 GPUs by December 2025. This fleet includes 800 H100s, 1,100 H200s, 5,400 B200s, and 1,200 B300s -- the cutting-edge Blackwell architecture that Nvidia positions as the future of AI training. With GPU utilization running at or near 100% and hardware profit margins in the high 90s, Iren is essentially generating significant profits from the AI boom.
What sets Iren apart is its vertical integration and cost structure. The company operates data centers with power costs averaging just $0.033 per kilowatt-hour -- among the lowest globally. Its secured NVIDIA Preferred Partner status guarantees GPU allocation in a supply constrained market. Most impressively, Iren has arranged non-dilutive financing covering 100% of GPU hardware costs through 36-month leases, allowing rapid expansion without equity dilution.
Building the infrastructure for tomorrow's AI
Iren isn't just renting GPUs -- it's building critical AI infrastructure. Operating data center capacity tripled to 810 megawatts in FY25, with contracted grid-connected power reaching 2,910 megawatts. Its liquid-cooled facilities can support over 60,000 NVIDIA Blackwell GPUs across existing sites.
The Sweetwater 2 project in West Texas -- a 600-megawatt facility expandable to 2 gigawatts -- will create one of North America's largest AI computing hubs by 2027. Combined with the 75-megawatt Horizon 1 data center launching late 2025, Iren is positioning itself as essential infrastructure for enterprise AI deployment.
The dual revenue model balances stability with growth. Bitcoin mining generates a steady cash flow at $41,000 per Bitcoin, while AI cloud services drive the future. Management projects $200 million to $250 million in annual AI cloud revenue once the 10,900 GPU deployment is complete.
A bargain hiding in plain sight
Despite the massive rally, Iren's valuation remains surprisingly reasonable. The stock trades at 31 times forward earnings -- still modest for an AI-forward company with triple-digit growth rates. Wall Street projects revenue will reach $515 million this year (up 173%) and approach $960 million next year (up another 86%).
The risks are real but manageable. Cryptocurrency volatility could impact Bitcoin mining revenue, though this business is increasingly secondary to AI growth. Competition for data center capacity is intensifying, GPU supply constraints could limit growth, and the technical setup shows the stock consolidating near all-time highs after its parabolic move.
Yet Iren's combination of renewable energy assets, low-cost power, existing infrastructure, and secured GPU allocations creates significant competitive moats. For growth investors comfortable with volatility, Iren offers a unique way to play the AI infrastructure boom without paying nosebleed multiples.
