IREN Surges 10.57% on Record Bitcoin Mining and AI Cloud Growth—What’s Fueling This Volatile Rally?

Summary
• IREN’s stock soars 10.57% to $18.19, hitting an intraday high of $18.25 after reporting $86M in July revenue.
• Bitcoin mining output jumps 17% to 728 BTC mined, while AI Cloud Services expand with 2,400 NVIDIA GPUs.
• Options volatility spikes, with 20 contracts trading above 90% implied volatility as short-term call options dominate.

IREN’s explosive 10.57% rally on August 6, 2025, has ignited market speculation about its dual-engine strategy of Bitcoin mining and AI Cloud Services. With the stock surging from $16.45 to $18.19, the move follows a record $86M revenue report and a 17% increase in Bitcoin production. The stock’s sharp ascent, coupled with a 9.5% turnover rate, signals a mix of institutional and retail momentum. Traders are now dissecting whether this surge is a sustainable breakout or a short-term spike driven by speculative options activity.

Bitcoin Mining and AI Cloud Synergy Ignites Earnings Surge
IREN’s 10.57% price jump is directly tied to its July 2025 monthly update, which revealed a 17% increase in Bitcoin mined (728 BTC) and a 76% hardware profit margin in its mining segment. The AI Cloud Services division also reported $2.3M in revenue with a 98% profit margin, driven by 2,400 NVIDIA B200/B300 GPUs deployed. The company’s ability to scale both operations on shared infrastructure—mining 728 BTC at $114,891 per coin while expanding AI Cloud capacity—has positioned it as a hybrid play in the crypto and AI sectors. Additionally, the completion of the Mackenzie dual-fiber upgrade and progress on the 50MW Horizon 1 data center in Texas have reinforced investor confidence in its long-term scalability.

Blockchain Sector Volatility Intensifies as MARA Trails IREN’s Gains
IREN’s 10.57% surge outpaces its blockchain peers, including MARA Holdings (MARA), which rose 2.72% on the same day. While pure-play miners like MARA and CLSK saw slight declines in Bitcoin production, IREN’s hybrid model—combining mining with AI Cloud—has proven more resilient. The sector’s elevated volatility is evident in IREN’s options chain, where 20 contracts trade with implied volatilities above 90%, compared to the S&P 500’s average of 25%. This divergence highlights IREN’s unique positioning as a growth stock in a sector still grappling with regulatory and macroeconomic headwinds.

Options and ETF Strategy: Capitalizing on IREN’s Volatility and Breakout Potential
• MACD: 0.635 (bullish divergence from signal line 1.084)
• RSI: 44.11 (oversold territory, suggesting potential rebound)
• Bollinger Bands: Price at $18.19 (above middle band $17.11, near upper band $19.08)
• 200-day MA: $10.53 (far below current price, indicating strong momentum)

IREN’s technicals suggest a short-term breakout scenario. The stock has pierced the upper Bollinger Band and is trading above its 200-day MA by 72%, signaling strong bullish momentum. The RSI at 44.11 suggests oversold conditions, which could trigger a rebound. For options traders, the IREN20250815C18 and IREN20250815P18.5 contracts stand out:

• IREN20250815C18:
- Strike: $18, Expiry: 2025-08-15
- IV: 95.82% (high volatility)
- Delta: 0.5628 (moderate sensitivity to price)
- Theta: -0.0948 (rapid time decay)
- Gamma: 0.1365 (high sensitivity to price swings)
- Turnover: $149,290
- Leverage Ratio: 14.45%
- Payoff (5% upside): $0.90 per share (max(0, 19.0986 - 18))
- Why: High gamma and moderate delta make this call ideal for a short-term rally. The 95.82% IV ensures premium inflation, while the 14.45% leverage amplifies gains if the stock breaks above $18.50.

• IREN20250815P18.5:
- Strike: $18.50, Expiry: 2025-08-15
- IV: 116.51% (extreme volatility)
- Delta: -0.4924 (moderate bearish exposure)
- Theta: -0.0257 (slow time decay)
- Gamma: 0.1136 (moderate sensitivity)
- Turnover: $4,311
Leverage Ratio: 11.75%
- Payoff (5% upside): $0.5986 (max(0, 18.50 - 19.0986))
- Why: Despite the bearish delta, the 116.51% IV and high gamma make this put a speculative play for volatility. If IREN consolidates near $18.50, the put could profit from a pullback. However, liquidity is thin (turnover $4,311), so entry/exit risks are elevated.

Action: Aggressive bulls should target IREN20250815C18 for a breakout above $18.50. Conservative traders may hedge with IREN20250815P18.5 if the stock tests $18.50. Watch for a breakdown below $17.50 to trigger a shift in strategy.

Backtest IREN Stock Performance
The 11% intraday surge in IREN has historically led to positive short-to-medium-term gains. The backtest data shows that following such a surge:1. Short-Term Gains: The 3-day win rate is 50.12%, indicating that half of the time, the stock continues to rise in the three days following the surge.2. Medium-Term Gains: The 10-day win rate is 52.24%, suggesting a slightly higher probability of continued growth in the ten days after the surge.3. Long-Term Gains: The 30-day win rate is 57.18%, with the highest maximum return of 17.37% observed on day 59 after the surge, indicating that the stock tends to maintain its momentum over longer periods.In conclusion, an 11% intraday surge in IREN has been a reliable signal for further gains in the stock, with the probability of positive returns increasing with the duration of the observation period.

IREN’s Breakout: A High-Volatility Play with Clear Entry/Exit Signals
IREN’s 10.57% surge is a testament to its hybrid Bitcoin-AI Cloud model, but the stock’s 9.5% turnover rate and 95%+ IV options suggest a volatile near-term outlook. The key levels to watch are $18.50 (resistance) and $17.50 (support). A close above $18.50 would validate the breakout, while a drop below $17.50 could trigger a retest of the 52-week low. Sector leader MARA’s 2.72% gain underscores the sector’s mixed momentum, but IREN’s unique infrastructure scalability gives it an edge. Act now: Buy IREN20250815C18 for a short-term rally, but set a tight stop below $17.50 to mitigate risk.