IREN Expands AI Cloud Capacity: Is the Growth Thesis Strengthening?

IREN Limited IREN has doubled its AI cloud capacity to 23k GPUs through the purchase of an additional 12.4k GPUs for roughly $674 million. This comprises 1.9k NVIDIA H100s and H200s, 19.1k NVIDIA B200s and B300s, 1.2k NVIDIA GB300s and 1.1k AMD MI350Xs. IREN now expects to achieve $500 million in AI Cloud annualized run-rate revenue (ARR) by the first quarter of fiscal 2026.

In late August, IREN announced that it is purchasing an additional 4.2k Blackwell B200 GPUs from NVIDIA to be installed at IREN’s Prince George campus. The Blackwell architecture offers notable improvements in AI compute performance and energy efficiency compared to Hopper. Blackwell enables lower cost and energy usage, which enables IREN to offer next-generation compute in a supply-constrained market. 

IREN’s AI cloud business is expanding rapidly, with more than 10,000 GPUs online or set to be commissioned in the coming months. The upcoming GPUs include next-generation liquid-cooled GB300 NVL72 systems from NVIDIA at the Prince George campus.

IREN is on track to achieve $1.25 billion in annualized revenues, with roughly $1 billion coming from bitcoin mining, and $200-$250 million from AI Cloud (by Dec. 2025). IREN expects to scale from 1.9k to 10.9k GPUs in the coming months. IREN has been on track to install more than 60k NVIDIA Blackwell GPUs at British Columbia sites and recognizes the potential of 19k GB300s at Horizon 1. IREN continues its transition in British Columbia (160 MW) from bitcoin mining to AI, including a new liquid-cooled data center for GB300 NVL72 installations at Prince George.

IREN Faces Tough Competition

IREN Limited faces stiff competition from the likes of Strategy MSTR and CleanSpark CLSK in the bitcoin mining market.

Strategy benefits from increasing bitcoin yield, which hit 19.7% at the end of the second quarter of 2025 and 25% year to date. In dollar terms, bitcoin gain was $9.5 billion at the end of the second quarter and $13.2 billion year to date. Strategy now expects to achieve a bitcoin yield of 30% and $20 billion in gains, assuming the bitcoin price hits $150,000 at the end of the year.

CleanSpark produced 2,012 bitcoins, a 28% increase year over year in the third quarter of fiscal 2025. Average Revenue Per Bitcoin was $99,000, which increased 50% year over year. Cost per Bitcoin in the third quarter of fiscal 2025 was $44,806, which was far below the average spot price of approximately $98,500 during the same period.

IREN’s Share Price Performance, Valuation & Estimates

IREN shares have appreciated 314.5% year to date, outperforming the broader Zacks Finance sector’s return of 14.9% and the Zacks Financial Miscellaneous Services industry’s 9.7%.

IREN Stock’s Performance

The IREN stock is trading at a premium, with a price/cash flow of 4.82X compared with the industry’s 3.81X. IREN Limited has a Value Score of F.

IREN Valuation

The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $1.08 per share, unchanged over the past seven days. The company reported earnings of 4 cents per share in fiscal 2025.
 

IREN Limited Price and Consensus

IREN Limited price-consensus-chart | IREN Limited Quote

IREN Limited currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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