NASDAQ: IREN closed August 29 with a 14.93% jump to $26.48, followed by an after-hours move to $27.00, reflecting bullish investor sentiment after the Bitcoin miner posted strong fiscal year results and doubled down on its AI infrastructure ambitions.
The digital infrastructure firm, formerly Iris Energy, not only delivered a revenue beat but also showcased accelerating cash generation, a strengthened balance sheet, and aggressive expansion across AI data center initiatives.
The momentum appears to be a mix of crypto tailwinds and a strategic pivot that investors are now beginning to reprice.
What drove IREN’s FY25 earnings beat and why investors are paying close attention
For the full year ended June 30, 2025, IREN Limited reported $142 million in revenue, up from $75 million in FY24, representing an 89% year-on-year increase. The surge was largely powered by higher average Bitcoin prices and expanded mining capacity, but the real story lies deeper.
Adjusted EBITDA came in at $54.8 million, a swing from a negative figure in the prior year, while operating cash flows hit $59.5 million, underlining strong free cash generation even amid volatile crypto market conditions.
IREN emphasized that its contracted operating capacity reached 260 MW, while it secured additional infrastructure to scale to 500 MW, with a clear split between Bitcoin mining and AI data center customers.
The Australian-headquartered firm is making a bold bet on dual-tenant infrastructure, positioning itself as both a high-efficiency miner and a future-ready AI GPU hosting player.
How IREN is diversifying from Bitcoin mining to AI data centers—and what that means
In its shareholder letter and investor presentation, IREN outlined a strategic transition that mirrors shifts seen across digital infrastructure: leveraging power contracts and modular sites to host high-performance compute (HPC).
The company stated that its first AI customer is now operational at its Childress site in Texas, and it expects to scale this vertical further. Notably, the firm has secured NVIDIA H100s—critical to AI workloads—and is planning for 50 MW of AI infrastructure by mid-2026, with an eye on 200 MW longer term.
IREN’s data center sites, optimized for energy efficiency and quick deployment, may give it a structural advantage as demand for AI inferencing and training compute skyrockets. This move aligns it with a broader theme playing out across the likes of CoreWeave, Crusoe Energy, and Applied Digital—repurposing crypto infrastructure for AI growth.
What institutional sentiment reveals about IREN’s post-earnings rally
Wednesday’s 15% spike in share price came with elevated trading volumes and renewed attention from retail forums and institutional trackers. The after-hours move to $27.00 suggests momentum is not purely retail-driven.
Several fund managers tracking Bitcoin exposure and AI adjacency have increased their allocations to digital infrastructure firms with power availability and existing buildouts. In IREN’s case, the combination of 500 MW runway, cash reserves, and next-gen equipment orders seems to have tipped sentiment more bullish after several quarters of caution.
The company also clarified that its liquidity position has strengthened, with $75 million in cash and no corporate debt, giving it room to scale without diluting shareholder equity.
How IREN’s site-level expansion could power long-term growth—and why 1 GW is on the horizon
IREN’s modular, containerized infrastructure enables it to expand faster than traditional data center players, particularly in power-rich rural locations. According to the FY25 release, the firm is now targeting 1 gigawatt of data center capacity by 2028, with up to 200 megawatts specifically allocated for AI and high-performance computing (HPC) workloads. The remaining 800 megawatts are expected to support Bitcoin mining operations or be utilized in a hybrid compute model, depending on demand and market conditions.
Key sites include Childress (TX), Helena (MT), Prince George (Canada), and Canal Flats (Canada). The company’s site ownership structure and long-term energy contracts provide insulation from power price volatility—a growing concern for hyperscalers and miners alike.
This forward visibility on infrastructure, combined with a clear bifurcation strategy (mining + AI), is likely playing into its current market re-rating.
What IREN’s stock chart and technical signals suggest for short-term traders
The sharp upward move on August 29, captured in the intraday chart, showed consistent accumulation throughout the day with very little selloff post-earnings. The stock surged from $23.04 to a close of $26.48, near the day’s high, indicating strong conviction buying.
After-hours trading pushed it to $27.00, suggesting momentum continuation. If the stock breaks the psychological $30 resistance in the coming sessions, it could trigger a wave of algorithmic and swing-trader interest.
Volume analysis also indicates that the move wasn’t thinly traded—adding weight to the sustainability of the rally.
How does IREN compare to U.S. rivals like Core Scientific and Riot Platforms?
Among listed Bitcoin miners pivoting to AI infrastructure, IREN stands out for its balance sheet discipline, self-mining capacity, and modular expansion strategy.
Compared to Core Scientific, which recently emerged from bankruptcy and is heavily diluted, and Riot Platforms, which is focused primarily on scale over diversification, IREN is increasingly positioned as a capital-efficient hybrid play.
IREN’s low corporate debt, existing power agreements, and AI-ready sites give it leverage without overextension—traits that many funds are now prioritizing in the post-2022 crypto winter recovery.
Could IREN become a takeout target or partner for AI cloud providers?
As the demand for sovereign AI compute and decentralized hosting models grows, IREN’s footprint could attract acquisition or partnership interest from larger players lacking physical infrastructure.
In its call, management highlighted early-stage discussions with AI clients and strategic interest in leasing out GPU capacity in a hybrid model—keeping mining as a core business while monetizing idle capacity or spare power contracts.
This model mirrors what CoreWeave is doing—leasing AI compute while still owning the GPUs or infrastructure. With H100s already secured, IREN is among the few mining-native firms ready to monetize compute rather than just tokens.
IREN’s dual-path strategy may now be priced at a discount to its potential
Industry analysts note that IREN’s market cap still lags behind its buildout capacity and AI exposure, suggesting further upside if it executes well.
While there’s risk from Bitcoin price volatility and GPU supply constraints, the firm’s focus on capital discipline, site readiness, and infrastructure flexibility has turned it into a value pick within the AI infrastructure basket.
The move from a pure-play miner to a compute infrastructure firm with AI GPU monetization upside may rerate the stock’s valuation multiples in the coming quarters—especially as Wall Street increasingly looks beyond pure SaaS and cloud providers to the underlying compute stack.
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