IREN Limited (IREN): A Bull Case Theory 

We came across a bullish thesis on IREN Limited on X.com by Umbasim. In this article, we will summarize the bulls’ thesis on IREN. IREN Limited’s share was trading at $30.19 as of September 9th. IREN’s trailing and forward P/E were 77.41 and 32.05 respectively according to Yahoo Finance.

Iris Energy (NASDAQ: IREN) is emerging as a differentiated infrastructure company at the intersection of Bitcoin mining and AI compute, built on renewable energy access. Founded in 2019 by Daniel and William Roberts, IREN began as a hydro-powered Bitcoin miner in British Columbia and has scaled into a datacenter platform with over 500 MW of operating capacity across Canada and Texas. The company’s competitive edge lies in securing some of the lowest-cost renewable power globally, with rates near $0.033/kWh, supporting mining margins north of 70% and providing a clean compute profile increasingly attractive to AI clients. Its operations span multiple Canadian hydro-backed sites and major Texas developments, including the Childress site, already hosting GPUs, and Sweetwater, a multi-phase buildout expected to reach 2 GW by 2027, underpinning long-term AI cloud expansion.

Mining remains the current financial engine, with FY25 revenue of $501 million and net income of $87 million, supported by bottom-quartile costs. Yet the strategic pivot is underway through IRENcloud, the AI infrastructure arm. With under 2,000 GPUs deployed today, the company has secured supply to scale to ~11,000 GPUs by year-end 2025, targeting $200–$250 million of AI revenue at gross margins exceeding 95%. Longer term, IREN’s 2.9 GW power rights enable fleet growth toward ~100,000 GPUs by 2030, potentially making AI revenues dominant by 2027–2028.

Valuation scenarios highlight asymmetric upside: even under conservative Bitcoin price assumptions, IREN remains profitable, while base and bull cases see $4–7 billion in revenue by 2030 with share prices potentially exceeding $200. Risks include execution in scaling GPUs, capital intensity, and competitive pressure from hyperscalers, but IREN’s combination of cheap renewable power, modular infrastructure, and dual exposure to Bitcoin and AI positions it as a unique hybrid play with significant optionality for investors.

Previously we covered a bullish thesis on IREN Limited (IREN) by Anxious-Criticism652 in May 2025, which highlighted its hybrid AI/crypto model, scalable Sweetwater site, and debt-free balance sheet. The stock has appreciated about 231% since, as rapid GPU expansion and profitability played out. The thesis still stands on renewable-powered flexibility. Umbasim shares a similar view but emphasizes IRENcloud’s GPU scaling and valuation.

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Disclosure: None.