In late 2024, an Australian Bitcoin (BTC +0.34%) miner, Iris Energy, rebranded as IREN (IREN +0.43%) and transformed into an AI infrastructure company. Since that rebranding, IREN's stock has rallied more than 270%.
Why did IREN's stock skyrocket?
As IREN, the company used all of its capital, logistics, and power infrastructure to expand its AI and high-performance computing (HPC) data centers rather than its Bitcoin mining operations. It now provides over 800 MW of capacity through its four data center campuses in North America.
Image source: Getty Images.
Last November, it signed a 5-year, $9.7 billion AI cloud services contract with Microsoft (MSFT +0.65%). This May, it signed a $3.4 billion AI cloud services contract with Nvidia. In July, it signed a $2.8 billion wave of multi-customer AI cloud contracts, in which its customers were required to prepay approximately 45% of the GPU capex. Through those mega-deals, IREN expects its annualized revenue run rate (ARR) to exceed $4 billion in 2026.
NASDAQ: IREN
Key Data Points
From 2025 to 2028, analysts expect IREN's revenue to surge from $510 million to $6.20 billion, as its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) jump from $270 million to $4.95 billion. With an enterprise value of $17.59 billion, it looks reasonably valued at 5 times its estimated adjusted EBITDA for 2028 -- so it could still be a great play on the ongoing expansion of the AI data center market.
