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IREN Limited Jumps 6% in a Month: Buy, Sell or Hold the Stock?

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Key Takeaways

  • IREN's bitcoin mining revenue jumped 24% in Q3 fiscal 2025, driving strong stock performance.
  • AI Cloud services rose 33% year over year, supported by GPU expansion and new data centers.
  • A 600MW Sweetwater 2 grid deal lifts IRENs secured power to 2.75GW, boosting infrastructure scale.

IREN Limited (IREN - Free Report) shares have jumped 5.8% in the past month, outperforming the Zacks Finance sector’s return of 0.6% and the Zacks Financial Miscellaneous Services industry’s decline of 4.4%.

IREN has been benefiting from growing bitcoin mining revenues, which jumped 24% year over year to $141.2 million in the third quarter of fiscal 2025. The company mined 1,514 bitcoins in third-quarter fiscal 2025 compared with 1,347 in the previous quarter. IREN mined 728 bitcoins in July compared with 620 bitcoins in June 2025. July revenues surged 27.6% month over month to $83.6 million.

AI Cloud revenues are accelerating, which bodes well for IREN Limited. In third-quarter fiscal 2025, AI Cloud services revenues jumped 33% year over year to $3.6 million. The company is supplying white labelled compute to leading US AI cloud providers. July revenues were $2.3 million compared with June’s reported revenues of $2.2 million.

Year to date, IREN shares have jumped 100.4%, outperforming the broader sector and industry’s appreciation of 10.6% and 1.8%, respectively. IREN Limited has outperformed peers, including Riot Platforms (RIOT - Free Report) and CleanSpark (CLSK - Free Report) . Shares of Riot Platforms and CleanSpark have returned 22.7% and 3.1%, respectively.

IREN Stock’s YTD Performance

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Technically, IREN is trading above the 50-day and 200-day SMAs, suggesting a bullish trend.

IREN Trades Above 50-Day and 200-Day SMAs

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

So, what should investors do with IREN stock? Let’s dig deep into its fundamentals to gain some insight.

Growing Power Infrastructure Bodes Well for IREN’s Prospects

IREN Limited is one of the world’s largest and lowest-cost Bitcoin miners, achieving 326% year-over-year hashrate growth in the third quarter of fiscal 2025. IREN Limited achieved its 50 EH/s installed hashrate target in June. 50 EH/s generates roughly $830 million annualized hardware profit. In July, hardware profit jumped 28.7% month over month to $63.3 million. Hardware margin increased 100 basis points in July compared with June.

IREN has solidified its position as an infrastructure powerhouse with a binding 600MW grid connection agreement for its Sweetwater 2 project. This development brings the company's total secured power in West Texas to an impressive 2.75 gigawatts. The strategic selection of West Texas leverages one of the world's largest renewable energy markets, offering scalable, low-cost electricity with multiple high-bandwidth fiber connections and low latency (~6ms to Dallas) – critical factors for AI and cloud workloads.

Securing this additional 600MW further solidifies IREN Limited’s competitive position as a leader in scalable data center infrastructure. The company’s upcoming milestones include Sweetwater 1’s energization in April 2026 and Sweetwater 2 in late 2027, representing significant catalysts for future growth.

Expanding AI Cloud Bodes Well for IREN’s Prospects

IREN operates 660MW of data centers and is expected to expand up to 910 MW in 2025. 

The announcement of Horizon 1, a 50MW liquid-cooled data center specifically designed for AI and high-performance computing workloads, represents IREN’s strategic pivot toward higher-value services. This facility will support direct-to-chip liquid cooling and power redundancy with 200kW rack density capabilities, specifically designed to support next-generation NVIDIA (NVDA - Free Report) Blackwell GPUs. Horizon 1 remains on track for fourth-quarter 2025 delivery.

The company bought 2.4k next-generation NVIDIA Blackwell B200 and B300 GPUs that will be installed over the coming months at IREN’s Prince George, BC campus. Combined with the existing 1.9k Hopper GPUs, this expansion increases IREN’s fleet to approximately 4.3k NVIDIA GPUs. Supported by 50MW of dedicated power, Prince George can host more than 20,000 Blackwell GPUs.

IREN Limited has completed the Mackenzie fiber upgrade that enhances the company’s ability to support the continued growth of AI Cloud beyond Prince George.

IREN’s Earnings Estimate Revision Shows Steady Trend

The Zacks Consensus Estimate for fourth-quarter fiscal 2025 earnings is currently pegged at 17 cents, unchanged over the past 30 days. The consensus mark for revenues is pegged at $193.8 million.
 

 

The Zacks Consensus Estimate for fiscal 2025 earnings is currently pegged at 14 cents per share, unchanged over the past 30 days. The consensus mark for revenues is pegged at $515.8 million, suggesting a jump of 173.3% from fiscal 2024’s reported figure.

Here is Why IREN Stock is a Hold

IREN shares are overvalued, as suggested by the Value Score of D.

In terms of forward Price/Cash Flow, IREN Limited is trading at 70.42X compared with the industry’s 21.64X, suggesting a premium valuation.

IREN Valuation

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Despite strong prospects from low-cost bitcoin mining and expanding AI Cloud footprint, modest earnings growth and stretched valuation are risky for investors.

IREN Limited currently has a Zacks Rank #3 (Hold), which implies investors should wait for a favorable point to accumulate the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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