IREN Limited (IREN): A Bull Case Theory

We came across a bullish thesis on IREN Limited on Investment Ideas by Antonio’s Substack by Antonio Linares. In this article, we will summarize the bulls’ thesis on IREN. IREN Limited's share was trading at $61.83 as of October 16th. IREN’s trailing and forward P/E were 120.56  and 65.36 respectively according to Yahoo Finance.

Iren has demonstrated a major operational and financial milestone as cash from operations has turned positive, signaling that management has effectively navigated the company’s complex infrastructure and financial challenges. This achievement confirms that Iren’s datacenter architecture is repeatable and capable of generating cash, reflecting the strength of its world-class leadership. Despite temporarily pausing its mining expansion, the company continues to invest heavily in CapEx, and free cash flow per share is trending upward, illustrating that growth and cash generation can coexist.

The analogy to Tesla’s factory model highlights Iren’s capacity to efficiently scale datacenters, a feat that is operationally complex and difficult to replicate. While total debt currently exceeds cash by roughly $400 million, the demonstrated ability to produce cash makes the leverage manageable, reducing risks associated with financial mismanagement. Iren’s flexible infrastructure allows for multiple monetization strategies, including colocation and cloud operations, enabling management to optimize risk-adjusted returns. The AI cloud business is expanding rapidly, with over 10,000 GPUs being deployed across next-generation liquid-cooled systems, potentially generating $200–$250 million in annualized revenue, and positioning AI operations to rival its Bitcoin mining business within a few years.

Management’s disciplined execution, ability to adapt infrastructure for client requirements, and careful capital allocation underscore the company’s strategic advantage. As AI scaling laws continue and execution remains strong, Iren’s datacenter platform could become an increasingly valuable asset, suggesting that the market may be underestimating the company’s long-term growth potential. Positive cash flow, scalable infrastructure, and strategic optionality collectively support a compelling investment case, with significant upside if AI adoption persists and operational excellence continues.

Previously we covered a bullish thesis on IREN Limited (IREN) by Industrial Tech Stock Analyst in February 2025, highlighting its renewable energy-powered data centers, zero debt, strong cash flow, and early AI partnerships. The company's stock price has appreciated approximately by 577.96% since our coverage as the thesis played out with successful AI and datacenter scaling. Antonio Linares shares a similar approach but emphasizes positive cash flow and AI cloud expansion.

IREN Limited is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held IREN at the end of the second quarter which was 28 in the previous quarter. While we acknowledge the potential of IREN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW 

Disclosure: None.