Bernstein sees IREN pivot to $3.7B AI cloud

Bernstein analysts say IREN is pivoting from Bitcoin mining toward AI cloud infrastructure, signalling a major shift in its long-term business model.

The firm’s AI cloud division already has around 150,000 GPUs contracted, supporting an estimated $3.7 billion annual revenue run rate once fully operational.

A key driver is a long-term agreement with Microsoft, which includes customer prepayments that help fund IREN’s multi-billion-dollar infrastructure buildout.

“IREN will eventually sunset the Bitcoin mining business as it retrofits existing sites to accelerate cloud deployment,”

Bernstein analysts said.

The company is repurposing mining sites in Texas and British Columbia by replacing ASIC rigs with GPUs, redirecting power capacity toward higher-margin AI workloads.

Bernstein has assigned IREN a $100 price target, implying nearly 100% upside from current levels below $50, while maintaining an Outperform rating despite a more conservative outlook.

The shift reflects a broader trend among miners moving into AI and high-performance computing, as firms seek more stable and profitable revenue streams beyond Bitcoin mining.

At the time of reporting, Bitcoin price was $77,411.56.