IREN Limited (IREN): A Bull Case Theory

We came across a bullish thesis on IREN Limited (IREN) on r/wallstreetbets Subreddit by Gentleman-Dreamer. In this article, we will summarize the bulls’ thesis on IREN. IREN Limited (IREN)’s share was trading at $16.82 as of 3rd July. IREN’s trailing and forward P/E were 2.15 and 24.05 respectively according to Yahoo Finance.

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A team of technicians working on a server of bitcoin mining equipment in a data center.

IREN Limited (IREN) presents a unique opportunity centered on the monetization of its energy and land assets, with time-to-power emerging as a critical advantage in the age of AI infrastructure. As hyperscalers like Oracle search for multiple 1GW+ ready sites by 2026, IREN’s secured 3GW pipeline and near-term readiness place it among the very few positioned to capitalize.

Strong data center rent growth and industry reports show power access has overtaken fiber and labor as the top site constraint, reinforcing IREN’s edge. Its Horizon 1 & 2 projects could generate $125M in EBITDA, worth $1.2B ($5.5/share) at precedent valuations.

Additionally, IREN’s 47MW of redundant, low-latency capacity in Canada could be converted into AI cloud infrastructure, potentially unlocking $1.9B ($8.5/share) in value if GPU financing is secured and utilization remains high.

Bitcoin mining remains a cash flow engine, with up to $650M in EBITDA depending on network dynamics. Low-cost power (~3.5¢/kWh) gives IREN a cost advantage, translating to $3.3M–8.5M/MW in value from energy savings alone—especially as onsite generation becomes a strategic necessity. Adjusting for $820M in convertible debt ($3.6/share) and $150M in corporate overhead ($6.5/share), IREN’s sum-of-the-parts value remains attractive.

Its existing infrastructure is worth ~$16/share, and if its energy pipeline is monetized at $6M–12M/MW, potential value rises to $98–$196/share. Horizon’s model illustrates how $350M in cost can be turned into $900M–$1.5B in value, capturing up to $20M/MW.

With risks like AI demand volatility and Bitcoin price swings acknowledged, IREN’s optionality and structural advantage in power access underpin a powerful investment case.

Previously we covered a bullish thesis on IREN Limited (IREN) by Anxious-Criticism652 in May 2025, which highlighted the company’s pivot from Bitcoin mining to becoming an AI cloud and quantum infrastructure player, backed by a debt-free balance sheet and modular, scalable compute design. The company’s stock price has appreciated by approximately 78% since our coverage. This is because the market began recognizing IREN’s infrastructure value and hybrid AI/crypto strategy. Gentleman-Dreamer shares a similar view but emphasizes the monetization potential of IREN’s vast energy and land assets, with “time-to-power” emerging as the key differentiator.

IREN isn’t on our list of the 30 Most Popular Stocks Among Hedge Funds. While we acknowledge the risk and potential of IREN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than IREN and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.