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SYDNEY - IREN Limited (NASDAQ: IREN), a data center company specializing in Bitcoin mining and AI services, announced today that it will pause further expansion of its Bitcoin mining operations after reaching a 52 EH/s capacity. The company is redirecting its strategy towards the growth of its AI Cloud Services and AI Data Center businesses. With an impressive revenue growth of 133% and industry-leading gross profit margins of 90%, IREN has demonstrated strong operational execution. InvestingPro analysis suggests the stock is currently trading below its Fair Value, presenting a potential opportunity for investors interested in the crypto mining and AI sectors.
The decision to halt Bitcoin mining expansion comes as IREN completes its current buildout to 52 EH/s. This move is part of a broader capital reallocation towards enhancing its AI data centers and cloud infrastructure. Despite the pause, IREN’s existing Bitcoin mining operations are expected to continue generating strong cash flows. According to InvestingPro data, while the company holds more cash than debt on its balance sheet, it’s currently experiencing rapid cash burn, making this strategic pivot particularly crucial. Analysts maintain a bullish outlook, with price targets ranging from $12 to $26.
IREN’s Bitcoin mining capacity recently increased from 31 EH/s to 35 EH/s with the energization of its Childress Phase 4 project. The company is on track to complete its expansion to 50 EH/s in the coming months, which is projected to yield $528 million in annualized illustrative net cashflow.
In the AI Cloud Services sector, IREN operates 1,896 GPUs, including the NVIDIA H100 and H200 hardware. These utilized GPUs are generating annualized run-rate revenue of $26 million as of March 31, 2025. IREN has reported increased engagement around large-scale AI cloud infrastructure opportunities following the release of its DeepSeek technology.
Regarding its AI Data Centers, IREN has started negotiations for larger volumes of capacity with multiple potential customers. The company has begun placing deposits for long-lead equipment to maintain its competitive edge in time-to-market.
The company’s capital strategy includes a mix of customer prepayments, debt financing solutions, and the use of an existing ATM facility, which has raised $111 million to date at an average share price of $11.07. IREN believes there is a strong institutional appetite for credit and infrastructure lending, supported by its real asset base and proven execution track record. With a market capitalization of $1.33 billion and a moderate debt-to-equity ratio of 0.25, InvestingPro research reveals 15+ additional key insights about IREN’s financial health and growth prospects, available in the comprehensive Pro Research Report.
IREN’s forward-looking statements highlight its commitment to its business strategy, operational and financial goals, and increased power capacity and hashrate. However, these statements are subject to various risks and uncertainties that could cause actual results to differ materially.
This strategic update is based on a press release statement from IREN Limited.
In other recent news, IREN Limited has announced a restatement of its financial statements for fiscal years 2022 through 2024, following a review by the SEC. This adjustment, which aligns with International Accounting Standards, will reclassify proceeds from Bitcoin sales from operating to investing activities. The restatement does not impact the company’s profit or loss statements or financial position. Meanwhile, IREN has secured a 600MW grid connection for its Sweetwater data center hub in Texas, bringing its total capacity to 2GW. The company is also planning to expand its Bitcoin mining capacity to 52 EH/s and its data center operations to 910MW by 2025.
JPMorgan has upgraded IREN’s stock rating from Neutral to Overweight, although it reduced the price target to $12.00, citing IREN’s efficient mining operations and promising growth prospects. Cantor Fitzgerald also adjusted its price target for IREN to $20.00, down from $23.00, while maintaining an Overweight rating. The company’s February update highlighted a robust 70% profit margin for its mining hardware and plans to increase its operating hashrate to 50 EH/s in the coming months. IREN’s AI Cloud Service is nearing full capacity, indicating strong demand for high-performance computing solutions.
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