IREN’s Strategic Pivot: Why Bernstein Sees AI Cloud as the Future Over Bitcoin Mining

Artificial intelligence is the real opportunity for Bitcoin miners, according to analysts at wealth management firm Bernstein. The firm now believes IREN’s future rests on transforming into a hyperscale AI cloud operator, rather than relying on Bitcoin mining as it has in the past.

In a recent note shared with DL News, Bernstein analysts Gautam Chhugani and his team maintained an “outperform” rating on IREN despite slashing its price target to $100 per share from $125. The analysts cited IREN’s successful pivot toward building its AI cloud business as the primary driver of this decision.

“IREN remains our top pick among AI-focused Bitcoin miners,” the analysts stated.

Market Context: Crypto’s $1.5 Trillion Drawdown

The Bernstein report comes as the cryptocurrency industry continues to recover from a $1.5 trillion drawdown since October, despite broader market gains. While the S&P 500 reached new records in April and assets like gold and commodities performed strongly, Bitcoin remains 40% below its October 2024 high of $126,000, reducing the profitability of mining operations.

The AI Boom: Investors Shift Focus to Tech

IREN’s strategic repositioning aligns with a broader market trend where equity investors are aggressively rotating into AI-driven stocks, despite concerns about a potential bubble. Technology companies have been a major driver of the S&P 500’s gains in recent years, while crypto-linked equities like Strategy and Bitmine have struggled as digital asset prices retreated from their late-2025 highs.

IREN’s AI Cloud Ambitions: Revenue and Projections

Bernstein’s report highlights IREN’s ambitious AI cloud strategy, which includes a 150,000 GPU contract supporting annualized revenue of $3.7 billion once fully deployed. Roughly half of these GPUs are already locked into a five-year deal with Microsoft.

By 2027, Bernstein expects IREN’s AI cloud segment alone to generate $2.1 billion in adjusted EBITDA, a key metric for Wall Street, as the company phases out its Bitcoin mining operations.

Revenue Growth Projections

• 2025: $16 million in AI cloud revenue
• 2027: $1.4 billion in AI cloud revenue (overtaking Bitcoin mining as the primary growth driver)
• 2030: $6 billion in AI cloud revenue and nearly $5 billion in adjusted EBITDA, with margins exceeding 80%

Power Infrastructure: The Backbone of IREN’s Strategy

IREN’s AI cloud expansion is supported by a 4.5-gigawatt power portfolio, with sites in British Columbia and Texas being retrofitted for GPU racks. Additional capacity in Sweetwater and Oklahoma provides further expansion potential.

Lance Datskoluo is DL News’ Europe-based markets correspondent. Got a tip? Email him at [email protected]