Bitcoin mining meltdown? Why IREN’s real future is in AI, according to Bernstein

Artificial intelligence is the real opportunity for Bitcoin miners, analysts say.

IREN’s future now rests on transforming into a hyperscale AI cloud operator, rather than mining Bitcoin as it had done in the past, according to wealth management firm Bernstein.

Bernstein slashed its price target on IREN to $100 from $125 per share but maintained its “outperform” rating, citing the successful pivot to building its AI cloud business.

“IREN remains our top pick among AI focused Bitcoin miners,” analyst Gautam Chhugani and his three colleagues said in a note shared with DL News.

Bernstein’s positive rating lands as the cryptocurrency industry is still reeling from a $1.5 trillion drawdown since October despite stocks and other assets soaring to historic highs. The S&P 500 printed a new record in April, while gold and commodities also post strong performance.

Bitcoin is trading 40% below its October high of $126,000, meaning that miners’ business model is less lucrative.

AI bonanza

IREN’s repositioning comes as equity investors rotate aggressively into AI plays, despite widespread chatter of a bubble.

Technology companies have driven much of the S&P 500’s gains in recent years. In contrast, crypto-linked equities like Strategy and Bitmine have struggled as digital asset prices retraced from their highs in late 2025.

The Bernstein report says IREN has contracted 150,000 graphic processing units supporting annualised revenue of $3.7 billion once fully deployed, with roughly half already locked into a five-year Microsoft deal.

By 2027, Bernstein expects the AI cloud segment alone to generate $2.1 billion in adjusted EBITDA — a key metric for Wall street — as the company sunsets its Bitcoin mining operations.

Revenue projections illustrate the shift.

Bernstein models IREN’s AI cloud revenue surging from just $16 million in 2025 to $1.4 billion in 2027, overtaking Bitcoin mining as the company’s primary engine of growth.

By 2030, analysts project $6 billion in cloud revenue and nearly $5 billion in adjusted EBITDA, with margins exceeding 80%

The physical backbone of that strategy is IREN’s 4.5 gigawatt power portfolio.

Sites in British Columbia and Texas are being retrofitted for GPU racks, while additional capacity at Sweetwater and Oklahoma provides expansion optionality.

Lance Datskoluo is DL News’ Europe-based markets correspondent. Got a tip? Email him at lance@dlnews.com