Bitcoin price today: surges to $122k, near record high on US regulatory cheer
On Thursday, H.C. Wainwright analyst Mike Colonnese maintained a Buy rating on IREN Ltd. (NASDAQ: IREN) with a price target of $21.00. Following the release of IREN’s record quarterly revenue and adjusted EBITDA for the third fiscal quarter of 2025, the firm expressed a positive outlook on the company’s future. InvestingPro data reveals impressive revenue growth of 127% over the last twelve months, with the company maintaining strong gross profit margins of nearly 87%. With a market capitalization of $1.79 billion, IREN currently trades at $7.97, suggesting potential upside according to InvestingPro’s Fair Value analysis.
IREN announced its progress in BTC mining, stating it is on track to reach its mid-year hash rate goal of 50 EH/s by the end of June 2025, up from 40 EH/s as of April 16. The company plans to have all remaining mining rigs shipped from Southeast Asia before the 90-day pause on reciprocal tariffs expires. However, IREN has decided to halt further expansion of its BTC mining operations beyond the 50 EH/s target to allocate capital and resources towards developing its AI data center, Horizon 1. InvestingPro analysis shows the company maintains a healthy balance sheet with more cash than debt, though investors should note rapid cash burn rates in recent quarters.
The company is currently in advanced negotiations with potential customers for the initial 50 MW capacity of its liquid-cooled HPC/AI data center at Childress, named Horizon 1. Management is confident about securing a lease before the center’s completion in the fourth quarter of 2025. The anticipated demand for data center capacity to support AI workloads is expected to lead to IREN securing its first colocation deal before the year’s end, a development not yet factored into the firm’s financial model.
IREN estimates that Horizon 1 could generate between $75 million and $100 million in average annualized revenues upon completion, with construction costs projected between $300 million to $350 million. The company is planning to secure new debt financing in the upcoming months to cover a portion of these capital expenditures.
Additionally, IREN’s Sweetwater data center hub in West Texas, with a capacity of 2 GW, is expected to have 1.4 GW energized by April 2026. This hub is also designated for HPC/AI data center development, with long lead time items already secured. Management is considering a potential pivot away from BTC mining to fully focus on HPC/AI data center development if customer demand warrants such a change.
IREN has positioned itself as one of the leading low-cost BTC producers with significant potential in the HPC/AI space. H.C. Wainwright believes that the market has yet to fully recognize these dynamics, which supports the firm’s reiterated Buy rating on IREN stock. InvestingPro reveals analyst targets ranging from $12 to $23, with a consensus recommendation leaning strongly toward Buy. The company maintains a GOOD overall financial health score of 2.57, suggesting solid fundamentals. For deeper insights into IREN’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Iris Energy Limited reported third quarter fiscal 2025 revenue of $148.1 million, which fell short of analyst expectations of $163.83 million. Despite missing revenue estimates, the company experienced a 24% increase in revenue compared to the previous quarter, driven by growth in Bitcoin mining and AI cloud services. Bitcoin mining revenue rose 24% to $141.2 million, while AI cloud services revenue increased by 33% to $3.6 million. The company mined 1,514 Bitcoin during the quarter, up from 1,347 in the previous quarter, as its average operating hashrate increased 30% to 29.4 EH/s. Iris Energy reported a record adjusted EBITDA of $83.3 million, up from $62.6 million in the second quarter. The company also reported a profit after income tax of $24.2 million, marking a 28% increase from $18.9 million in the previous quarter. Co-Founder and Co-CEO Daniel Roberts expressed satisfaction with the company’s strong EBITDA and net profit, attributing growth to large-scale data center sites. Iris Energy plans to reach 50 EH/s of Bitcoin mining capacity by June 30, 2025, but intends to pause further mining expansion to focus on scaling its AI infrastructure initiatives. The company concluded the quarter with $184.3 million in cash and cash equivalents.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.