Bitcoin Miner IREN Could Gain 80% on Back of Strategic AI Cloud Move, Says Bernstein

IREN (IREN), one of the largest self-operated Bitcoin miners in the U.S., is drawing renewed Wall Street attention with its pivot into AI cloud infrastructure.

Bernstein analysts raised their price target on IREN to $75 from $20, signaling roughly 80% upside, while maintaining an outperform rating. The firm highlighted IREN’s strategy of developing its own AI cloud business, rather than relying solely on co-location agreements with partners like CoreWeave (CRWV).

The stock has already seen dramatic gains, trading more than eight times higher than its 52-week low of $5.13 in April and up 365% year-over-year.

Despite early skepticism about the miner’s ability to execute a capital-intensive data center build-out and compete with AI cloud providers connected to hyperscalers and Nvidia (NVDA), Bernstein views IREN’s AI pivot as credible.

IREN projects $500 million in annual recurring revenue by Q1 2026, supported by 23,300 GPUs, up from approximately $14 million in Q1 2025.

The company retains flexibility with its 3-gigawatt power portfolio, balancing Bitcoin mining and AI workloads to maximize revenue per megawatt, according to Bernstein analysts led by Gautam Chhugani.

Its 50 EH/s mining operation is estimated to generate $600 million in annualized EBITDA at current Bitcoin prices, funding its AI expansion.

Bernstein has adopted a sum-of-parts valuation, assigning 87% of enterprise value to AI cloud and co-location potential at IREN’s 2GW West Texas site, with the remaining 13% derived from Bitcoin mining.

At the revised target, IREN would trade at $7.5 million per megawatt (MW), above other AI-focused miners but still below established data center peers like CoreWeave, leaving room for further multiple expansion, Bernstein noted.

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