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SYDNEY - IREN Limited (NASDAQ: IREN), a $1.76 billion market cap company specializing in Bitcoin mining and AI cloud services, has reported a resilient profit margin of 70% for its mining hardware in its February 2025 update. The company, which boasts an impressive 90.06% gross profit margin according to InvestingPro data, mined 3,459 BTC, generating $43.9 million in revenue, with electricity costs amounting to $13.0 million.
The company is on track to increase its operating hashrate to 50 EH/s over the next four months, which is expected to yield substantial annualized operating cash flows, estimated at approximately $600 million at current market conditions. With analysts setting price targets between $15 and $26, IREN’s AI Cloud Service is nearing full capacity as of the end of February, indicating strong demand, particularly for NVIDIA H100/H200s and the upcoming next-generation air-cooled Blackwells. (InvestingPro subscribers can access 12 additional key insights about IREN’s growth potential.)
In terms of infrastructure development, IREN has commenced site works at the 1.4GW Sweetwater 1 project, with energization planned for April 2026. Additionally, the company is finalizing a connection agreement for the 600MW Sweetwater 2 project, further expanding its data center capabilities.
The AI Data Center ’Horizon 1’ is currently undergoing customer diligence, with demand significantly exceeding its initial 75MW capacity. This development is part of IREN’s strategy to diversify and offer high-performance computing (HPC) solutions, including potential colocation services.
IREN’s Co-Founder and Co-CEO, Daniel Roberts, expressed confidence in the company’s core Bitcoin mining operations and its expansion into AI and HPC offerings. The company’s flexible financing and investment strategy is aimed at accretive capital deployment, with an active assessment of market conditions and exploration of alternative capital sources.
The company’s technical commentary highlighted strong margins supported by low electricity costs and efficient fleet operations. Even with a hypothetical lower Bitcoin price of $80,000, the anticipated 50 EH/s operating capacity could generate around $500 million in annualized operating cash flows.
This information is based on a press release statement from IREN Limited. With a remarkable revenue growth of 133.25% and a beta of 3.65, IREN represents a high-growth, volatile investment opportunity in the crypto mining and AI sectors. For a comprehensive analysis of IREN’s financial health and growth prospects, access the full InvestingPro Research Report, part of our coverage of over 1,400 US stocks.
In other recent news, IREN Ltd. reported its second fiscal quarter of 2025 results, showing a significant year-over-year revenue increase of 189%, driven by a substantial growth in Bitcoin mining activities. The company’s average installed hash rate saw a remarkable rise of 376%, contributing to the production of 1,347 Bitcoin, compared to 1,144 Bitcoin in the same quarter the previous year. The company also achieved improvements in fleet efficiency and restructured energy contracts, resulting in the lowest cost to mine a Bitcoin in the industry, with $53.7 million reported in operating cash flow for the quarter.
Furthermore, Cantor Fitzgerald recently adjusted its rating on IREN Ltd. from Overweight to Neutral, maintaining a $23 price target, while H.C. Wainwright increased its price target to $22, citing IREN’s strategic shift towards expanding its high-performance computing and AI business. Canaccord Genuity also raised its price target to $23, maintaining a Buy rating, and highlighted IREN’s strategic initiatives and operational progress. IREN’s decision to repurpose part of its Childress facility for a liquid-cooled AI data center is part of its broader strategy to capitalize on different markets.
The Horizon 1 project at Childress is anticipated to support NVIDIA Blackwell GPUs and is expected to be completed in the second half of 2025, with an estimated cost of $325 million. The project aims to generate over $75 million in annual revenue at full capacity. IREN is actively exploring multi-tenant AI co-location opportunities, though no agreements have been finalized yet. These developments underscore IREN’s efforts to diversify its operations and enhance its growth potential in both Bitcoin mining and AI sectors.
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