IREN Bitcoin Miner Poised for 80% Upside Thanks to AI Cloud Expansion, According to Bernstein

IREN (IREN), one of the largest self-operated Bitcoin miners in the U.S., is gaining attention from Wall Street as it pivots into AI cloud infrastructure.

Bernstein analysts raised their price target on IREN to $75 from $20, suggesting approximately 80% upside, while reiterating an outperform rating. The brokerage highlighted IREN’s strategy of building its own AI cloud business, instead of relying solely on co-location deals with partners such as CoreWeave (CRWV).

The shares have already surged dramatically, up more than eight-fold from the 52-week low of $5.13 in April and 365% year-over-year.

Despite initial skepticism about executing a capital-intensive data center build-out and competing with AI cloud providers tied to hyperscalers and Nvidia (NVDA), Bernstein considers IREN’s AI pivot credible.

IREN is guiding for rapid growth, expecting $500 million in annual recurring revenue by Q1 2026 supported by 23,300 GPUs, up from roughly $14 million in Q1 2025.

The company retains flexibility through its 3-gigawatt power portfolio, balancing Bitcoin mining and AI workloads to optimize revenue per megawatt, according to Bernstein analysts led by Gautam Chhugani.

Its 50 EH/s mining operation is projected to generate $600 million in annualized EBITDA at current Bitcoin prices, funding its AI expansion.

Bernstein has moved to a sum-of-parts valuation, assigning 87% of enterprise value to AI cloud and co-location potential at IREN’s 2GW West Texas site, with the remaining 13% attributed to Bitcoin mining.

At the revised target, IREN would trade at $7.5 million per megawatt (MW), above other AI-focused miners but still below established data center peers like CoreWeave, indicating potential for further multiple expansion.