Bitcoin News Today: IREN's Renewable Edge: Fueling AI as Bitcoin Era Wanes

IREN Limited (NASDAQ: IREN) has announced a strategic pivot from Bitcoin mining to AI cloud services, securing multi-year contracts for NVIDIA Blackwell GPU deployments that could generate over $500 million in annualized run-rate revenue (ARR) by early 2026. The company has expanded its GPU fleet to 23,000 units, with 11,000 already contracted to deliver $225 million in ARR by the end of 2025. These contracts, averaging two-year terms, align with IREN's shift to leverage its renewable-powered data centers in British Columbia and Texas for AI workloads Bitcoin Miner IREN Jumps 9% After Securing New Multi …^[1].

IREN's transition reflects broader industry trends, as firms repurpose energy-intensive infrastructure from digital asset mining to support AI compute demand. The company's vertically integrated model-owning power contracts, land, and facilities-enables it to operate at scale. Its British Columbia campuses and Horizon 1 & 2 data centers in Texas can host over 100,000 GPUs, supported by 2,910 MW of secured power capacity. Co-Founder Daniel Roberts emphasized that the rapid transition from ASICs to GPUs and the speed of Horizon 1 & 2 construction position IREN to meet surging AI demand Bitcoin Miner IREN Secures Multi-Year AI Cloud …^[2].

Financial performance underscores the pivot's momentum. FY2025 revenue reached $501 million, up 168% year-over-year, driven by $485 million in Bitcoin mining revenue. However, AI cloud services, which contributed $16 million in FY2025, are projected to surpass mining in revenue by 2026. The company's gross margins remain robust at over 70%, bolstered by low renewable energy costs ($0.03–$0.038 per kWh) IREN Stock Skyrockets 500% as Bitcoin Miner Reinvents Itself as …^[3].

Analyst sentiment is divided but largely bullish. Bernstein upgraded IREN's price target to $75, citing credible AI infrastructure progress, while Roth Capital raised its target to $82. JPMorgan, however, downgraded to "Underweight" with a $24 fair value, warning that the stock may already reflect a $10 billion capital outlay for AI expansion. IREN's market cap now stands at $16.3 billion, with a beta of 4.2, reflecting high volatility tied to execution risks and AI market dynamics Bernstein Triples IREN Price Target to $75 Amid AI Pivot^[4].

IREN's recent $875 million 0% convertible note offering underscores its funding strategy, providing capital for GPU procurement and data center development. The notes, priced at a 42.5% conversion premium, are set to mature in 2031 and offer flexibility to scale without immediate dilution. Management aims to achieve $1.25 billion in annualized revenue by 2026, with $1 billion from Bitcoin mining and $250 million from AI cloud services IREN Expands AI Cloud Capacity: Is the Growth Thesis ... - Nasdaq^[5].

The stock has surged over 500% in 2025, outperforming peers like Bitfarms (BITF) and Hive Digital (HIVE), which gained 200% year-to-date. Short interest remains elevated at 11–13% of float, amplifying price swings. Analysts highlight IREN's dual-growth engine model-combining low-cost Bitcoin mining with AI cloud services-as a unique value proposition in a market where AI infrastructure valuations often exceed $30 million per megawatt Why IREN is Shifting Away from Bitcoin Mining to Data …^[6].

IREN's pivot aligns with global AI demand, which is expected to require 1,000 gigawatts of new data center capacity by 2030. Its renewable energy focus also appeals to ESG-conscious clients, particularly in Europe, where regulatory frameworks like the Corporate Sustainability Reporting Directive (CSRD) prioritize green infrastructure. The company's liquid-cooled data centers, including the 75MW Sweetwater facility in Texas, are designed to meet hyperscale AI workloads with energy efficiency How IREN is Building an AI Powerhouse on a Bitcoin Foundation^[7].