IREN is shifting its focus from Bitcoin mining to becoming a hyperscale AI cloud operator, as highlighted in a report by Bernstein, which has reduced its price target for IREN to $100 while maintaining an “outperform” rating. This change comes in response to the significant downturn in the cryptocurrency market, which has seen Bitcoin’s price fall 40% from its October high of $126,000, diminishing the profitability of mining operations. Bernstein anticipates that by 2027, IREN’s AI cloud business will generate $2.1 billion in adjusted EBITDA, surpassing its Bitcoin mining revenue, which is indicative of a broader trend where Bitcoin miners are repurposing their data centers and power resources for AI computing amid declining mining economics and increased investor interest in AI technologies.

IREN: IREN Limited is a vertically integrated provider of renewable-powered data centers offering AI cloud services, GPU clusters, and high-performance computing infrastructure for AI training and inference. Originally focused on Bitcoin mining, the company is transitioning to hyperscale AI cloud operations by retrofitting sites for GPU racks and securing major contracts including one with Microsoft. Bernstein recently named IREN its top pick among Bitcoin miners pivoting to AI infrastructure.
Bernstein: Bernstein is a global investment research firm renowned for its sell-side equity analysis in technology, digital assets, and emerging sectors. The firm issued a recent note maintaining an outperform rating on IREN while emphasizing its strategic shift from Bitcoin mining to AI cloud business as the key growth driver. Bernstein analysts view IREN’s transformation into a hyperscale AI operator as superior to traditional mining models.
Gautam Chhugani: Gautam Chhugani is a Managing Director at Bernstein leading global digital assets research, covering cryptocurrency equities and blockchain-related companies. He co-authored the recent Bernstein note positioning IREN as the top choice among AI-focused Bitcoin miners due to its successful pivot and AI cloud contracts. Chhugani specializes in analyzing trends at the intersection of crypto and technology infrastructure.

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“AI Pivot Trend”: “Bitcoin miners are leveraging their infrastructure to focus on AI cloud services as the cryptocurrency market faces volatility.”,
“Industry Shift”: “Public Bitcoin miners are diversifying into AI and high-performance computing as alternatives to traditional mining activities.”,
“Power Advantage”: “Miners’ established power infrastructure provides a strategic advantage in expanding AI data center capabilities.”
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