We came across a bullish thesis on IREN Limited (IREN) on Substack by Industrial Tech Stock Analyst and Money Machine Newsletter. In this article, we will summarize the bulls’ thesis on IREN. IREN Limited (IREN)’s share was trading at $13.01 as of Feb 14th. IREN’s trailing and forward P/E were 2.15 and 39.37 respectively according to Yahoo Finance.
An overhead view of a large-scale data center with rows of servers and blinking lights.
In overlooked locations like Canal Flats, British Columbia, Prince George, British Columbia, and Childress County, Texas, IREN (formerly Iris Energy) is quietly establishing itself as a critical player in AI’s next wave of growth. Originally a Bitcoin miner, IREN is rapidly pivoting to power AI computing, leveraging its renewable energy-powered data centers to solve one of AI’s biggest bottlenecks: infrastructure.
The explosion of AI applications requires massive computing power, yet data center construction remains constrained by long permitting and build-out timelines. AI’s energy consumption is unprecedented—ChatGPT alone uses 17,000 times the power of an average U.S. home. In response, data center construction spending in the U.S. surged 60% last year, but demand is outpacing supply. This growing infrastructure bottleneck presents a lucrative opportunity for IREN, which already operates data centers powered entirely by cheap, excess hydro and solar energy.
With $400 million in annual revenue from Bitcoin mining, zero debt, and positive cash flow, IREN has both financial stability and strategic flexibility. It has already secured partnerships with AI players like Poolside AI and WEKA, and as AI workloads continue to expand, additional customers could unlock exponential growth. MMN believes that if IREN successfully transitions more of its capacity to AI computing, its valuation could increase 10x. Meanwhile, IREN maintains a dual growth strategy, continuing to scale its Bitcoin mining operations while expanding AI-ready infrastructure, providing a diversified approach to high-performance computing.
As AI demand surges and energy constraints tighten, the companies that control the infrastructure behind AI will emerge as the true winners. IREN is positioning itself at the forefront of this transformation, making it an under-the-radar opportunity with asymmetric upside potential.
IREN Limited (IREN) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held IREN at the end of the third quarter which was 38 in the previous quarter. While we acknowledge the risk and potential of IREN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than IREN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.