The analysis firm Bernstein has initiated coverage on the Bitcoin miner Iren (NASDAQ: IREN), assigning it an “outperform” rating and projecting an impressive 80% potential upside for its stock price. The firm’s optimism is centered on Iren’s bold and successful expansion into artificial intelligence (AI) cloud services, a move that diversifies its revenue beyond cryptocurrency mining.
According to the report, Iren’s dual strategy is beginning to yield significant results. Analysts highlight that the AI cloud business could generate around $500 million in annual revenue by early 2026. This new business line not only offers a robust and predictable revenue stream but also positions the company in a sector with exponential growth, reducing its dependence on the inherent volatility of the Bitcoin market.
The entry of Bitcoin miner Iren into AI infrastructure comes at a crucial moment for the mining industry. Following the latest Bitcoin halving, which reduced block rewards, many companies in the sector have sought innovative ways to maintain profitability. Iren’s decision to repurpose part of its energy capacity to power AI data centers is a highly profitable solution, capitalizing on the growing demand for computing power for advanced language models and other technologies.
For investors, this diversification represents a unique value proposition. Iren’s stock not only offers exposure to Bitcoin’s bull cycle but also functions as an investment in the burgeoning artificial intelligence market. The analysis firm underscores that the market has not yet fully priced in the potential of this AI division, which justifies their optimistic price target and buy recommendation.
A Dual Strategy Towards the Future
Iren’s vision of combining digital asset mining with the provision of high-performance computing services sets it apart from its competitors. As the company continues to optimize its mining operations, the exponential growth of its AI branch will be the key catalyst to watch. The next step for the Bitcoin miner Iren will be to consolidate its installed capacity and secure long-term contracts that solidify its position as a key player in the technological infrastructure of the future.
