Iris Energy Ltd. (NASDAQ:IREN) is a next-generation digital infrastructure company founded in Sydney, Australia, in 2018 by brothers Daniel and Will Roberts. With professional roots in infrastructure finance and investment, the Roberts brothers saw early on that Bitcoin and high-performance computing would require not just raw processing power, but efficient, sustainable energy solutions. That insight led to the creation of Iris Energy—a company purpose-built to bridge the worlds of renewable energy and emerging digital technologies through highly scalable, vertically integrated operations.
From the beginning, Iris Energy set itself apart by committing to 100% renewable electricity to power its data center campuses. By co-locating its facilities in regions with abundant, underutilized hydro, wind, or solar energy, such as British Columbia and West Texas, the company created a model that is both environmentally responsible and economically efficient. This clean power strategy enables Iris to maintain low electricity costs, reduce carbon impact, and provide grid-stabilizing load to energy markets that would otherwise waste excess generation.
Since launching its operations, Iris Energy has grown at a remarkable pace. What began as a single Canadian site has evolved into a sprawling North American network of high-performance infrastructure. By mid-2025, the company achieved a total operating hash rate of 50 exahashes per second (EH/s), placing it among the largest and most efficient sustainable Bitcoin miners in the world. This operational scale gives the company the capacity to generate nearly $1 billion in annualized mining revenue under favorable economic conditions—solidifying its role as a core player in the global digital asset ecosystem.
But Iris Energy’s ambition extends far beyond Bitcoin. Leveraging its modular infrastructure and advanced cooling systems, the company is aggressively expanding into AI cloud services. Its GPU-powered compute offering is already supporting inference and training workloads for U.S.-based AI cloud providers. With its Horizon 1 liquid-cooled AI data center in Childress, Texas, scheduled for delivery in Q4 2025, Iris is positioning itself to become a major infrastructure partner in the artificial intelligence revolution. The company’s AI fleet is now operating near full utilization and generating an annualized run-rate revenue of $28 million, reflecting both growing demand and Iris’s ability to deliver mission-critical compute capacity at scale.
The company’s financial performance in recent months has confirmed the success of its multi-pronged strategy. In May 2025, Iris Energy reported record revenue of $64.7 million and hardware profits of $47.8 million from its Bitcoin mining operations alone, with hardware profit margins exceeding 70%. Its AI cloud services continued to scale rapidly, posting hardware margins of 98%, a figure that underscores the capital efficiency of its compute model. The company is also moving to transition into U.S. domestic issuer status starting July 2025, a step that reflects its maturity and readiness to engage with a broader pool of institutional investors.
With its unique blend of renewable energy integration, cutting-edge data center engineering, and dual exposure to both blockchain and artificial intelligence, Iris Energy is building the backbone of tomorrow’s decentralized and intelligent economy. It stands at the intersection of several powerful trends—sustainable infrastructure, digital currency, and AI—and continues to expand with precision, speed, and a long-term vision for global impact.
Record-Setting Momentum: May 2025 Performance Underscores Operational Strength
The company’s May 2025 operational update revealed a torrent of positive developments, showcasing Iris Energy’s operational efficiency, financial health, and technological momentum. In May alone, the company recorded its highest-ever monthly revenue and hardware profit, achieving $64.7 million in Bitcoin mining revenue and an impressive $47.8 million in hardware profit, resulting in a hardware margin of 74%. The surge was fueled by favorable Bitcoin prices and a dramatic increase in the company’s average operating hash rate, which reached 38.4 EH/s, up from 30.3 EH/s in March.
Even more impressive was the number of Bitcoins mined, hitting 627 BTC for the month, up significantly from previous months. Revenue per Bitcoin also increased sharply to $103,345, compared to $86,522 in April, which more than offset the slightly elevated electricity costs of $27,033 per Bitcoin. This further cements Iris Energy’s ability to maintain resilient and industry-leading margins in a volatile crypto environment. On an annualized basis, once the company hits its 50 EH/s target by the end of June, its mining capacity could generate nearly $1 billion in revenue, demonstrating the sheer scale and economic potential of its infrastructure.
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AI Cloud Services: Iris Energy’s Second Growth Engine is Scaling Rapidly
While its Bitcoin mining operations continue to deliver strong results, Iris Energy is also rapidly scaling its AI Cloud Services division, which contributed $2.2 million in revenue in May alone. This vertical has shown consistent month-over-month growth, with hardware profit margins approaching a staggering 98%. These margins underscore the efficiency of Iris’s GPU infrastructure, which is now operating near full utilization.
The AI workloads supported by Iris’s GPU fleet include both training and inference applications, with several white-labeled partnerships in place with leading U.S.-based AI cloud providers. As of May 2025, the company’s AI compute operations are generating an annualized run-rate revenue of $28 million. This provides a clear path to meaningful diversification away from pure-play crypto mining and into the rapidly expanding world of AI infrastructure—a sector expected to grow exponentially over the coming decade.
Strategic Expansion of Data Center Infrastructure
Iris Energy is aggressively building out its data center footprint, with major projects underway that reflect a long-term vision for dominance in the high-performance computing space. At the heart of this expansion is the Childress site in Texas, which is on track for 750MW capacity and includes the company’s next major AI facility—Horizon 1, a liquid-cooled data center deployment set to go live in Q4 2025. Long-lead equipment for Horizon 1 continues to arrive on schedule, and key construction milestones such as transformer installations and subcontractor mobilization have been achieved, reinforcing management’s confidence in delivering on time and on budget.
In parallel, Iris is progressing on its Sweetwater 1 and Sweetwater 2 sites, which together will form a 2GW data center hub upon completion. These projects are designed to future-proof the company’s operations, offering immense scalability and positioning it as a vital infrastructure provider to both AI developers and blockchain applications. The build-out of these sites, along with redundant power capabilities and direct fiber connectivity, reflects best-in-class planning and a strategic blueprint that aligns perfectly with the evolving needs of global compute demand.
Transition to U.S. Domestic Issuer Status and Market Signal
Another important development is Iris Energy’s planned transition to U.S. domestic issuer status beginning July 1, 2025. This move is a strong signal of the company’s commitment to increased transparency, corporate governance, and institutional investor engagement. By aligning more closely with U.S. regulatory standards, Iris Energy enhances its appeal to a broader pool of investors, including funds that require such status for equity ownership.
This milestone also reflects Iris’s maturation as a company. From its beginnings as a renewable Bitcoin miner, it is now evolving into a fully diversified digital infrastructure operator. This pivot increases confidence in its long-term scalability and institutional viability, particularly as AI, decentralized finance, and Web3 computing take center stage in global technology conversations.
Favorable Financial Metrics Reinforce Investment Case
From a financial standpoint, Iris Energy’s performance metrics continue to impress. The company maintains strong liquidity and is funding its expansion without excessive dilution or unsustainable debt loads. The company’s hardware profit margin in both its Bitcoin mining and AI operations is a testament to its exceptional operational leverage. Management’s commentary reinforces this, with Co-Founder and Co-CEO Daniel Roberts stating that the platform’s strength is visible not only in record earnings but also in the pace of AI execution and the company’s continued ability to secure and deploy key infrastructure ahead of schedule.
Additionally, the company recently disclosed illustrative adjusted EBITDA sensitivities at 50 EH/s hash rate, assuming $105,000 Bitcoin prices, 100% uptime, and various other assumptions. These projections highlight the company’s capacity to generate substantial profits under even moderately bullish crypto conditions. While management has appropriately labeled these figures as illustrative, they nevertheless provide investors with an exciting glimpse into the possible upside as hash rate and AI demand increase in tandem.
Market Sentiment and Valuation Signals Bullish Potential
Market sentiment around Iris Energy is currently robust, with the stock recently trading around $16.94 following an 8% daily increase. Analysts have pegged 12-month price targets between $20 and $26, suggesting significant upside from current levels. Technical indicators also reflect bullish trends, with increased options call activity and momentum-based buying aligning with fundamental developments. Moreover, valuation models like those on AlphaSpread estimate the company’s intrinsic value at approximately $15.68, supporting the view that the stock is fairly valued to slightly undervalued at today’s price—even before accounting for potential AI monetization.
The broader backdrop of rising institutional interest in Bitcoin ETFs, increased adoption of AI cloud computing, and global demand for sustainable infrastructure makes Iris Energy a standout opportunity. The convergence of macro tailwinds and company-specific execution continues to drive optimism among both retail and institutional investors.
Conclusion: Iris Energy is Building the Digital Infrastructure of the Future
With its unwavering commitment to sustainability, rapid scaling in Bitcoin mining, and a bold foray into AI compute infrastructure, Iris Energy is fast becoming one of the most exciting players in the digital infrastructure sector. Its record-breaking revenue and hardware profit for May 2025, rapid progress on high-impact data center projects like Horizon 1, and strong traction in AI cloud services all support the thesis that Iris is not just riding the wave of crypto and AI growth—but helping to shape it.
Investors looking for exposure to the powerful themes of decentralized finance, clean energy, and artificial intelligence would be hard-pressed to find a more promising candidate than Iris Energy Ltd. With multiple catalysts on the horizon and a management team executing with precision, the bullish case for IREN continues to strengthen by the day.
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