Mining Company IREN Targets $37 Billion Valuation... "AI over Bitcoin"

▲ Bitcoin (BTC) Mining

Bernstein projected that IREN, a Bitcoin (BTC) mining company, would reach a corporate valuation of $37 billion as it transitions to an AI cloud business.

According to a report by virtual asset media Cointelegraph on April 27 (local time), Bernstein analysts Gautam Chhugani and Mahika Sapra positively evaluated IREN's business model change. Chhugani analyzed that IREN's large-scale power infrastructure is optimized for AI data center operations. The company currently has 1.4 GW of power capacity secured in areas such as Texas.

IREN is focusing on converting its data centers, originally built for Bitcoin mining, for AI cloud services. Recently, many tech companies have been struggling with data center expansion due to power shortages. IREN can provide AI services faster than competitors through its already secured power grid. The higher margin of AI computing services compared to Bitcoin mining profits is also a major reason for the business transition.

The company has acquired a large quantity of NVIDIA's latest graphics processing units, enhancing its hardware competitiveness. Sapra emphasized that IREN should be re-evaluated as an AI infrastructure company, beyond just a mining company. IREN has already started providing AI cloud services to some customers, generating substantial revenue. The market views IREN's actions as a new survival strategy for the mining industry.

As mining profitability decreases after the Bitcoin halving, the value of utilizing power infrastructure is growing even more. IREN is expanding its territory into the high-value AI sector based on its power assets. The estimated value of $37 billion reflects IREN's infrastructure potential and the explosive growth of the AI market. IREN is improving its corporate structure around the two pillars of virtual asset mining and AI cloud.

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