The cryptocurrency market has entered uncharted territory following Donald Trump’s election victory, with Bitcoin (BTC) surpassing $90,000 for the first time. This bullish sentiment has fueled optimism for crypto-related stocks, particularly Iris Energy (NASDAQ: IREN), a sustainable Bitcoin mining company.
Leveraging 100% renewable energy, Iris Energy has seen its stock rise by over 49% in the past month, reflecting growing investor confidence in its dual-focus strategy of Bitcoin mining and AI cloud services.
In the latest trading session, IREN closed at $13.51, marking a one-day gain of 7% and an impressive year-to-date increase of 98%.
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Expanding horizons: Bitcoin mining and AI services
Iris Energy’s dual focus on Bitcoin mining and AI cloud services has propelled the company to new heights.
On the mining side, the company achieved significant milestones in October, mining 439 Bitcoin and boosting monthly revenue by 32% to $28.2 million.
Operating costs also saw a marked improvement, with electricity costs per Bitcoin mined decreasing by 12%, largely due to efficiencies at its Childress operation center.
The firm’s mining capacity is set for exponential growth, with plans to increase its operating hash rate from the current 21 EH/s to 31 EH/s by year-end and an ambitious 50 EH/s by mid-2025.
On the AI front, Iris Energy is tapping into its data center infrastructure to drive new revenue streams. The company is on track to generate $32 million annually in AI hardware profits by 2024.
With the imminent deployment of 1,080 NVIDIA H200 GPUs and potential upgrades to next-generation Nvidia (NASDAQ: NVDA) Blackwell GPUs, Iris is primed to scale its AI cloud services, which currently utilize less than 0.5% of its data center capacity.
Analysts upgrade price targets amid Bitcoin rally
Riding on Bitcoin’s surge and Iris Energy’s operational advancements, analysts have revised their price targets for Iris Energy.
Cantor Fitzgerald raised Iris Energy’s price target to $23 from $20, maintaining an Overweight rating. The firm highlighted Iris Energy’s lower enterprise-value-to-hash-rate multiple compared to other Bitcoin miners, despite its strong AI and HPC potential, and expects the company to become the lowest-cost miner in its coverage by year-end.
Canaccord Genuity analyst Joseph Vafi lifted his price target to $17 from $15, keeping a Buy rating. The firm emphasized Iris Energy’s competitive power costs and its favorable hash rate ramp during Bitcoin’s rally to $90,000, marking a significant shift in its growth outlook.
HC Wainwright & Co. analyst Mike Colonnese also maintained a Strong Buy rating while raising the price target from $13 to $16, indicating an 18.43% upside. Meanwhile, Needham analyst John Todaro maintained a Hold rating on IREN.
These upgrades highlight increasing confidence in Iris Energy’s dual focus on sustainable Bitcoin mining and high-performance AI cloud services. This approach positions the company as a strong contender for long-term growth, driven by operational momentum, the ongoing Bitcoin rally, and scalable AI capabilities.
Additionally, Iris Energy has indicated potential shareholder distributions by 2025, including the possibility of a Bitcoin dividend, which further enhances investor interest.
Featured image via Shutterstock
