Bitcoin Miner IREN Has 80% Potential Upside Thanks to Big Bet on AI Cloud: Bernstein

IREN (IREN), 1 of the largest self-operated bitcoin (BTC) miners successful the U.S., is breaking distant from the pack, and Wall Street is taking notice.

Bernstein analysts raised their terms people connected IREN to $75 from $20, implying astir 80% upside, arsenic the miner doubles down connected gathering its ain AI unreality concern alternatively than relying connected co-location deals with partners similar CoreWeave (CRWV).

IREN has already had a large move, up much than eight-fold from its 52-week debased of $5.13 deed successful April. The shares are higher by 365% year-over-year.

The broker present sees IREN’s AI pivot arsenic credible, contempt aboriginal skepticism astir the miner’s quality to execute connected a capital-intensive information halfway build-out and vie with AI unreality players tied to hyperscalers and Nvidia (NVDA).

IREN is guiding for accelerated growth, the study noted, with $500 cardinal successful yearly recurring gross by Q1 2026 connected 23,300 GPUs, up from astir $14 cardinal successful Q1 2025.

Beyond AI, IREN retains flexibility with its 3 gigawatt (GW) powerfulness portfolio, balancing bitcoin mining and AI workloads to maximize gross per megawatt, Bernstein analysts led by Gautam Chhugani wrote.

Its 50 EH/s mining cognition generates an estimated $600 cardinal successful annualized EBITDA astatine existent bitcoin prices, backing its AI expansion, according to the analysts.

Bernstein has shifted its valuation attack to a sum-of-parts model, assigning 87% of endeavor worth to AI unreality and co-location imaginable astatine IREN’s 2GW West Texas site, with the remaining 13% coming from bitcoin mining.

At the revised target, IREN would commercialized astatine $7.5 cardinal per megawatt (MW), supra different AI-focused miners but inactive acold beneath established information halfway peers similar CoreWeave, suggesting further country for aggregate expansion, the study added.

Read more: IREN Shares Jump 11% successful Pre-Market Trading arsenic Bitcoin Miner Doubles AI Cloud Fleet