Iren Limited has experienced an extraordinary year, with its stock quadrupling despite a turbulent December, where shares dropped by 21%. The company’s transition from cryptocurrency to high-performance AI computing has positioned it as a significant player in the rapidly expanding AI infrastructure sector.
Originally a Bitcoin mining firm, Iren leveraged its existing data center capabilities to adapt to the increasing demand for computational power required for AI. The revenue generated from its crypto operations has facilitated a smoother transition towards building expansive data centers targeted at AI applications. Recently, Iren reported revenues of $240 million for the first quarter of fiscal 2026, marking an astounding 355% increase compared to the same period last year. The company aims to achieve a $3.4 billion annual revenue run rate from its AI cloud services by the end of 2026, bolstered by notable contracts like the $9.7 billion multi-year engagement with Microsoft.
Despite its impressive growth, Iren’s stock fluctuated significantly in December, likely due to investors capitalizing on profits after the sharp rise in shares throughout 2025. Although the company continues to invest heavily in infrastructure projects, raising concerns over debt levels, it recently secured $2.3 billion through a convertible notes offering. This funding is strategically being used to manage its capital structure while covering immediate expenditures.
With a robust cash reserve of $1.8 billion and ongoing revenue from its AI and crypto segments, Iren appears well-positioned for future growth. The share price has rallied nearly 30% at the start of 2026, indicating renewed investor confidence. As Iren navigates its ambitious growth strategy, opportunistic investors may find value during potential market corrections, as its commitment to AI infrastructure continues to unfold.