IREN Leaps Forward on AI Data Center Deals Worth Billions

Iris Energy, an Australian Bitcoin miner, rebranded as IREN in late 2024 and shifted its focus to AI infrastructure. The company's stock has since surged more than 270%. IREN used its resources to expand data centers for high-performance computing and AI, rather than Bitcoin mining.

The company now provides over 800 MW of capacity through four data center campuses in North America. In November, it signed a $9.7 billion AI cloud services contract with Microsoft. This May, it inked a $3.4 billion deal with Nvidia, and in July secured a wave of multi-customer AI cloud contracts worth $2.8 billion.

IREN expects its annualized revenue run rate to exceed $4 billion by 2026. Analysts forecast the company's revenue will jump from $510 million in 2025 to $6.20 billion by 2028, with adjusted EBITDA rising from $270 million to $4.95 billion.

The company's enterprise value stands at $17.59 billion, which some consider reasonably valued at five times its estimated adjusted EBITDA for 2028. However, The Motley Fool Stock Advisor analyst team did not recommend IREN as one of the top stocks for investors to buy now.