IREN Pivots to AI Cloud Infrastructure as Bitcoin Mining Returns Diminish

IREN is aggressively repositioning itself as a hyperscale AI cloud operator, moving away from its legacy Bitcoin mining operations to capture the surging demand for artificial intelligence infrastructure. This strategic shift is designed to insulate the company from the volatility of the digital asset market. The transition comes as the cryptocurrency sector faces significant headwinds, with Bitcoin trading 40% below its October peak of $126,000. This downturn has rendered traditional mining less lucrative, prompting a rotation of equity investors toward AI-centric plays despite concerns over a potential market bubble. According to a report from Bernstein, IREN has contracted 150,000 GPUs, which are expected to generate $3.7 billion in annualized revenue once fully deployed. A critical component of this growth is a five-year agreement with Microsoft, which has already locked in roughly half of the GPU capacity. The financial trajectory of the pivot is stark. AI cloud revenue is projected to grow from $16 million in 2025 to $1.4 billion by 2027. By 2030, Bernstein forecasts cloud revenue hitting $6 billion with adjusted EBITDA of nearly $5 billion and margins exceeding 80%. Supporting this expansion is a 4.5 gigawatt power portfolio. The company is currently retrofitting sites in Texas and British Columbia for GPU racks, while maintaining additional expansion optionality at sites in Oklahoma and Sweetwater. Despite lowering its price target from $125 to $100 per share, Bernstein maintains an "outperform" rating, naming IREN its top pick among Bitcoin miners focusing on AI infrastructure.