Bitcoin Miners Rally Amid AI Expansion News and Strong Earnings

Bitcoin miners Iren and Iris Energy have seen significant gains over the past week as cryptocurrency prices rebound. Iren, previously called Iris Energy, reported Q4 2025 earnings of 65 cents per share, up from a 24-cent loss a year ago, on 228% revenue growth to $187.3 million. Iren has also been named a "Nvidia preferred partner," fueling its rally.

IREN Ltd (NASDAQ: IREN), previously known as Iris Energy, has seen significant gains over the past week as cryptocurrency prices rebound. The company reported Q4 2025 earnings of 65 cents per share, up from a 24-cent loss a year ago, on 228% revenue growth to $187.3 million [2]. Additionally, IREN has been named a "NVIDIA preferred partner," further fueling its rally [3].

IREN's Q4 2025 earnings report marked a substantial turnaround. The company reported $178.94 million in revenue, exceeding the $186.21 million consensus estimate by 3.9%. Earnings per share (EPS) came in at $0.3702, surpassing the $0.17 analyst target by 118% [1]. This performance was driven by a combination of Bitcoin mining profitability and rapid AI cloud scaling.

IREN's Bitcoin mining operations, which still account for 97% of its revenue, saw a 400% expansion in hash rate to 50 exahash, making it one of the most efficient and profitable miners globally. Meanwhile, its AI cloud segment, though smaller, is scaling at an exponential rate. The company now operates over 10,900 NVIDIA GB300 GPUs, with plans to deploy 60,000 by year-end [1].

IREN's strategic pivot from a pure-play Bitcoin miner to a vertically integrated AI cloud provider is underpinned by three key initiatives: NVIDIA partnership and GPU scaling, low-cost power and vertical integration, and data center expansion [1]. These moves have positioned IREN as a key U.S. AI infrastructure player.

Financials That Justify the Hype
IREN's Q4 results were not just about revenue but also about profitability. The company reported $95.546 million in net income and $93.92 million in operating income, with a gross profit margin of 91.66%. Cash reserves now stand at $565 million, providing a buffer against Bitcoin's volatility and funding further AI expansion [1].

However, risks remain. IREN's Bitcoin mining segment still carries a pretax profit margin of -567.3%, a relic of its earlier focus on crypto. While AI cloud services are growing rapidly, they currently contribute only $7 million in revenue [1].

Market Reaction and Investor Sentiment
IREN's stock surged 3% in after-hours trading following the Q4 earnings report, with the price reaching $22.81. This follows a 19.79% pre-market jump on September 1, 2025, after the company announced its AI expansion [1]. Analysts have raised price targets to $37, citing strong cash reserves and AI growth potential. However, the stock's beta of 3.99 underscores its volatility, and a 70.34% drop in the 30 days post-earnings highlights the challenges of sustaining momentum [1].

Long-Term Growth: A Calculated Bet
IREN's 20-spot leap in stock rankings is a testament to its ability to execute on high-conviction strategies. For long-term investors, the company's dual focus on Bitcoin and AI offers a compelling risk-rebalance: Bitcoin provides cyclical cash flow, while AI offers secular growth. The key question is whether IREN can maintain its AI cloud scaling pace and convert its GPU capacity into recurring revenue [1].

Investment Advice: IREN is a high-conviction, high-risk play. Investors should consider a position in the stock only if they are comfortable with Bitcoin's volatility and believe in the AI infrastructure boom. The company's strong balance sheet and strategic partnerships provide a floor, but execution risks—such as GPU supply constraints and regulatory shifts—remain. For those with a 3–5 year horizon, IREN's AI cloud ambitions could justify the current valuation, but patience and a diversified portfolio are essential [1].

In conclusion, IREN's Q4 outperformance is more than a quarterly win—it's a sign of a company pivoting to capture the future of compute. Whether it becomes a long-term winner will depend on its ability to scale AI services profitably and navigate the inherent risks of its dual business model. For now, the stock's momentum suggests that the market is betting on success.

References:
[1] https://www.ainvest.com/news/iren-surging-momentum-earnings-outperformance-q4-2025-catalyst-long-term-growth-2509/
[2] https://finance.yahoo.com/m/00537002-6c59-3319-854a-fef8b918d1fa/ai-expansions-help-fuel.html
[3] https://simplywall.st/stocks/us/software/nasdaq-iren/iren/news/why-iren-iren-is-up-152-after-nvidia-partnership-and-earning