Iris Energy (NASDAQ: IREN) has been showcasing remarkable stock performance, with shares trading around $47 as of September 24, 2025, marking a daily increase of approximately 13%. This growth follows a significant upward trend that has seen the stock rise nearly 50% over the past week alone and an impressive 269% year-to-date. Iris Energy recently achieved a 52-week high in the mid-$40s range, a substantial contrast to its low of $5.13, resulting in a current market capitalization exceeding $10 billion.
The trading activity for IREN has surged, with daily volumes reaching near 30 million shares and options trading seeing a significant uptick. Reports indicate a bullish tilt to these trades, as call contracts considerably outpaced puts on a recent trading day. The implied volatility of the stock currently stands in the top quartile of the past year, indicating its ongoing volatility.
One of the key drivers of this stock surge is Iris Energy’s strategic expansion into AI cloud services. Recently, the company announced it has doubled its AI cloud capacity to 23,000 GPUs, aiming for over $500 million in annualized cloud revenue by the end of the first quarter of 2026. This ambitious expansion includes a $674 million investment in NVIDIA and AMD chips, embedding Iris Energy deeper into the high-performance AI data center sector while continuing its Bitcoin mining operations.
Financially, Iris Energy has reported record earnings for the fiscal year 2025, with revenues jumping to $501 million—a 168% year-over-year increase. The company revealed a net income of $86.9 million, a marked turnaround from previous losses, driven by rising Bitcoin prices and initial AI cloud contracts. It estimates potential annual Bitcoin mining revenue exceeding $1 billion under current market conditions, coupled with significant prospective revenues from its AI endeavors.
In a broader context, Bitcoin’s price has surged above $110,000, providing a hefty revenue tailwind for Iris Energy’s mining division. The company benefits considerably from low-cost renewable energy, with a breakeven mining cost of around $36,000 per Bitcoin. As such, the current price levels translate into substantial profit margins. Although broader sentiment in the crypto market appears mixed, with the Fear & Greed Index reflecting a state of “fear,” institutional adoption, including the launch of new U.S. spot Bitcoin ETFs, is growing.
The analyst community is increasingly optimistic about Iris Energy’s future. Arete Research recently initiated coverage with a Buy rating and a price target of $78, suggesting an upside potential of about 87% from current levels. Roth Capital has also revised its target dramatically from $35 to $82, emphasizing the potential for Iris to become a recognized player in both the AI cloud and Bitcoin mining sectors.
As the stock undergoes a transformative phase from being primarily recognized as a Bitcoin miner to a diversified digital infrastructure provider for both AI and crypto, the financial outlook remains positive. Analysts point to the Sweetwater project in Texas as a potential major catalyst, given its strategic positioning near significant tech projects from companies like Microsoft and OpenAI.
The company is also prioritizing the balance between its AI and Bitcoin mining operations. With plans to redistribute its mining rigs as needed, management aims to maintain its Bitcoin production levels alongside its cloud service expansion. Co-CEO Daniel Roberts noted that the doubling of its GPU fleet highlights Iris’s evolving operational capabilities and the meeting of urgent market demands.
In conclusion, Iris Energy’s recent advancements in AI cloud computing, alongside its continuously profitable Bitcoin mining operations, poise the company for substantial growth in the coming years. Both the bullish market response and the favorable regulator environment for renewable-powered crypto mining suggest a bright future as the company looks to solidify its foundation in an increasingly competitive yet lucrative sector. The forthcoming quarters will be closely monitored for Iris’s success in executing its ambitious transitions.
