Iris Energy (IREN): The Most Underrated AI + Bitcoin Stock in 2025?

Lately I’ve been digging into some growth names that aren’t afraid to go big. One company that kept showing up in my research was Iris Energy (NASDAQ: IREN). At first glance it looks like just another Bitcoin miner—but there’s a lot more going on under the hood.

They’re in the middle of a major pivot into AI infrastructure. Between that and their low-cost, high-efficiency mining operation, I think there’s a unique story unfolding here. I just opened a position.

So, what does Iris Energy actually do?

Originally, IREN made its name as a renewable-powered Bitcoin mining company. Pretty efficient too. But more recently, they’ve started expanding into AI compute—specifically, high-performance infrastructure designed to host GPUs for AI training and inference workloads.

They’re building their own liquid-cooled data centers and stacking them with NVIDIA’s most powerful chips. So while mining is still their core revenue engine, they’re shifting toward something much bigger: powering the next generation of AI.

It’s a different model, but it actually reminds me of what I wrote in this deep dive on NVIDIA’s valuation... hardware and compute scarcity is becoming a major moat.

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How fast is IREN growing?

The growth is hard to ignore. Back in FY2021, they made just under $8 million in revenue. By FY2024, that number had ballooned to nearly $189 million. That’s a 3-year CAGR of about 188%.

They’ve also recently started turning a profit. In Q3 FY25, they pulled in $148 million in revenue and posted $0.11 EPS. That came with $83.3M in adjusted EBITDA and $24.2M in profit after tax, which was up 28% from the previous quarter. Not bad for a company that’s been investing like crazy.

Are they actually profitable now?

Not consistently, but they’re getting close. On an annual basis, they’re still in the red—FY2024 ended with -$0.29 EPS. But quarterly numbers are turning green, and forward projections look solid. Analysts expect $0.13 EPS for this fiscal year and over $1.00 for FY2026. That’s a serious ramp.

This is the kind of trajectory I like to see in early-stage growth names. They’ve gone through the heavy investment phase and are starting to see returns.

It ties closely to what I wrote about how gross margin can tell you more than net profit early on... the signs of scaling are there before the bottom line flips.

Is IREN stock undervalued in 2025?

Here’s where things get interesting. From a valuation standpoint, IREN looks pretty compelling.

• PEG ratio is 0.17
• Forward P/E is around 17
• Price-to-sales is about 1.6
• Price-to-book is roughly 2.45

For a company growing this fast and on the verge of profitability, those numbers are attractive. The PEG in particular is a standout. Anything under 1 is considered good. Under 0.5 is rare. 0.17 suggests the market hasn’t fully caught up to what’s coming.

I touched on a similar pattern in Oscar Health’s revaluation story... where revenue momentum starts to shift sentiment long before the financial media catches on.

What makes the AI pivot so compelling?

In July 2025, IREN announced it had bought 2,400 of NVIDIA’s new Blackwell B200 and B300 GPUs. These are the chips everyone’s trying to get. That takes their total GPU count to around 4,300, including some earlier-generation Hoppers.

All of that hardware is being deployed into a brand new 50MW liquid-cooled data center called Horizon 1. It’s built for 200kW racks—about 20 times denser than traditional data centers.

This setup is perfect for large language models and other heavy-duty AI workloads. And IREN isn’t starting from scratch here. Their experience in power-dense Bitcoin mining infrastructure gives them a big head start.

Is Bitcoin mining still a core part of the business?

Definitely. IREN hit 50 EH/s in self-mining capacity in June 2025, putting them near the top of the public mining leaderboard. Their all-in cash cost per Bitcoin is about $41k. Compare that to a realized revenue per coin closer to $93k... that’s solid margin.

This part of the business might not be the flashy AI side, but it generates real cash. And that cash is helping fund the expansion into AI infrastructure without relying entirely on equity dilution.

This kind of capital-light reinvestment is something I highlighted when analyzing free cash flow vs revenue tradeoffs—especially in emerging infrastructure businesses.

What are analysts saying?

Most analysts are in the "Buy" camp. MarketBeat shows an average price target of $20.30 with a high of $33 and a low of $12. The stock trades around $17.33 right now.

Macquarie raised their target to $20. Canaccord Genuity held firm at $23. B. Riley bumped theirs to $15. So sentiment is clearly shifting more bullish after recent updates.

What risks am I watching?

There are a few, and I’m realistic about them.

First, free cash flow is still negative. That’s expected for a company investing heavily in infrastructure, but it’s something I’ll be watching. I went deeper into this tension in my piece on what FCF margins really reveal.

Second, they raised $550M through convertible notes recently. Great for capital, but that could mean dilution down the line.

Third, Bitcoin is still a big part of their story. If BTC drops hard, it could squeeze margins—even for a low-cost producer like IREN.

And finally, the AI buildout needs to land. GPUs are great, but they need to secure customers and monetize them well.

These aren’t dealbreakers for me... but they’re on my radar.

Why I’m buying IREN stock now

The combination of growth, strategy, and valuation makes this one of the more interesting setups I’ve seen in a while.

They’ve got a base business that’s profitable. They’re making a serious push into a high-growth sector. They’ve got early access to in-demand hardware. And the stock is still trading at what looks like a fair (or even cheap) multiple based on projected earnings.

I’m not betting the farm, but I’ve opened a starter position. I’ll add if they keep executing.

It’s a bit like what I did when I built a position in Robinhood’s post-bounce trade... I prefer getting in when expectations are still muted and the inflection point is real but underpriced.

What I’ll be watching next

A few things I’m keeping tabs on:

• Whether Horizon 1 comes online on time and starts generating revenue
• How quickly they deploy those GPUs
• Progress toward consistent positive free cash flow
• Bitcoin price volatility and how it affects their mining cash flow

If they start showing traction in AI cloud services and get even one or two big customer wins, this could look like a very different company a year from now.

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