IREN Stock Soars 370% in 2025, Market Cap Reaches $12.8 Billion.

IREN Limited's stock has surged by over 370% since the beginning of 2025, increasing its market capitalization from $2.2 billion to $12.8 billion. The investment rating for IREN is "Buy" with a market capitalization of about $12.8 billion. The stock rally is expected to continue with a strong performance in the market.

Iris Energy Limited (NASDAQ: IREN) has seen its stock price surge by over 370% since the beginning of 2025, increasing its market capitalization from $2.2 billion to $12.8 billion. This remarkable performance has led analysts to rate the stock as "Buy" Bitcoin Miner Turned AI Powerhouse: Iris Energy Stock Rockets to Record Highs^[1]. The investment rating reflects the company's strong financial results and strategic pivot into the AI cloud computing sector.

Iris Energy's stock rally is primarily driven by its robust financial performance and strategic expansion. The company reported record earnings for FY2025, with revenue soaring to $501.0 million, a 168% year-over-year increase, and net income of $86.9 million . This turnaround from a net loss in FY2024 was driven by both Bitcoin mining and the early contributions of the AI cloud computing services segment.

In addition to its financial success, Iris Energy has been aggressively expanding its operations. In September, the company announced a massive purchase of 12,400 Nvidia and AMD accelerators, doubling its AI cloud fleet to ~23,000 GPUs . This $674 million investment aims to generate over $500 million in annualized AI-cloud revenue by early 2026 . The company's strategic pivot into AI data centers and cloud services has been a key catalyst for its stock's rally.

The crypto market has also played a significant role in Iris Energy's success. Bitcoin's price has exploded above $120K in 2025, providing huge revenue boosts for miners . Iris Energy's average power cost is only ~$0.038/kWh (100% renewable), translating to a breakeven around $34–36K per BTC . With Bitcoin at ~$120K+, Iris enjoys ~70–75% gross margins on mined coins , a highly profitable spread that most competitors cannot match.

Despite the strong performance, the stock has seen heavy trading volumes and technical indicators reflecting an "overbought" condition . Analysts have hiked their target prices, with Compass Point upping its target to $50, Bernstein (SocGen) to $75, and Roth/MKM to $82 . However, JPMorgan downgraded IREN to Underweight with a $24 target, warning the stock might already account for future expectations that require significant capital expenditure .

Investor sentiment is mixed, with some applauding the 228% YoY revenue surge and Nvidia partnership, while others voice concerns about the sustainability of the rapid growth and potential delays in deploying new GPUs . Institutional investors have also shown interest, with Fidelity's FMR Co. building a ~8.65 million share stake in Q2 2025 .

In summary, Iris Energy's stock has surged on the back of strong financial performance, strategic expansion into AI cloud computing, and favorable crypto market conditions. The company's dual strategy of scaling Bitcoin mining operations and launching an AI cloud service has been well-received by investors. However, the stock's high valuation and heavy trading volumes suggest a potential for a near-term cooling off after such a vertical ascent.