Bitcoin News Today: From Bitcoin Mines to AI Clouds: IREN's Strategic Shift Powers 400% Stock Rally

IREN Limited (IREN), a former Bitcoin miner transitioning to AI cloud infrastructure, has surged over 400% year-to-date, capturing investor attention as a potential high-growth play in the AI computing boom. The stock's rally, driven by strategic pivots and infrastructure expansion, has drawn comparisons to speculative crypto investments, with some analysts suggesting a $3,000 investment could grow to $120,000 under favorable conditions.

IREN's pivot from Bitcoin mining to AI cloud services has positioned it at the intersection of two high-demand sectors. The company recently secured multi-year contracts for NVIDIA Blackwell GPU deployments, with 11,000 GPUs already contracted to generate $225 million in annualized AI cloud revenue by year-end. These contracts, part of a broader $674 million GPU procurement plan, include both NVIDIA and AMD hardware, doubling IREN's GPU capacity and aligning with surging demand for AI compute resources.

The company's infrastructure expansion underscores its competitive edge. IREN operates 810 MW of data center capacity across North America, with plans to add 75 MW of liquid-cooled AI facilities in Texas by late 2025. Its 2,910 MW of secured power-largely renewable-provides scalability and cost advantages, critical in an industry where energy expenses dominate. Recent projects, such as the Horizon 1 data center in Texas and the Sweetwater 2 site, aim to support 200 kW per rack, catering to high-performance AI workloads.

Financial performance reflects the shift's success. Q2 2025 results showed $2.7 million in AI cloud revenue, though Bitcoin mining remains a core contributor, generating $113.5 million in the same period. Adjusted EBITDA rose to $62.6 million, up from $2.6 million in Q1, driven by Bitcoin mining profitability and lower electricity costs. Despite Bitcoin's volatility, IREN's dual business model balances stable cash flows with AI's growth potential.

Market optimism is fueled by macro trends. OpenAI's $6 gigawatt deal with AMD-though not directly involving IREN-signals insatiable AI demand, potentially boosting IREN's GPU utilization. The company's access to scarce GPU supply and low-cost power positions it to capitalize on cloud partners seeking to scale. Analysts note IREN's forward P/E of 65.36 and lofty valuation metrics (43x forward sales) reflect premium pricing for growth, though execution risks and sector volatility remain concerns.

IREN's strategic vision extends beyond 2025. With over 100,000 GPUs in development capacity and plans for a standardized reporting framework, the company aims to meet accelerating demand while maintaining operational flexibility. However, its aggressive expansion and reliance on AI's sustained growth trajectory highlight the need for cautious optimism.

[1] IREN Secures New Multi-Year AI Cloud Contracts (https://markets.businessinsider.com/news/stocks/iren-secures-new-multi-year-ai-cloud-contracts-1035270982)

[2] Why Iren Limited Is Rallying Today (https://www.fool.com/investing/2025/10/06/why-iren-is-rallying-today/?msockid=25541c8af49f6e2531580af4f5e56f50)

[3] IREN Stock Hits A New All-Time High: What's Going On? (https://www.benzinga.com/trading-ideas/movers/25/10/48048644/iren-stock-hits-a-new-all-time-high-whats-going-on)

[4] BTC To AI: IREN Stock Compelling After Sell Off? (https://www.forbes.com/sites/greatspeculations/2025/09/30/btc-to-ai-iren-stock-compelling-after-sell-off/)

[5] IREN Limited (IREN) Stock Price, News, Quote & History - Yahoo Finance (https://finance.yahoo.com/quote/IREN/)