Recently, more and more old #BTC miners are transitioning to #AI computing power, and this trend is becoming increasingly evident. I have been browsing Twitter and researching a US stock company that has transformed into #AI computing power—#IREN, which I bought a little at around 20 dollars. Let me share some of my observations and research.

IREN (formerly Iris Energy) is a textbook case of a company that has made a stunning transition from #BTC mining to the #AI computing power sector this year.

I remember a few months ago, when scanning US stocks, it was still at 6-7 dollars, and now it has skyrocketed to 26 dollars, an increase of over 300%. If you casually browse X and Reddit, you will find people calling it a potential ten-bagger. So what is the magic behind #IREN that has attracted so many professional investors?

1️⃣ What was this company originally doing?

Initially, #IREN was just a Bitcoin miner, with a very simple and crude model:

It sought the cheapest and most stable renewable energy worldwide, built large data centers there, and filled them with mining machines to mine #BTC aggressively. With low electricity prices, it had a cost advantage in the mining sector—while others were suffering losses, it was still thriving.

The problem is that the mining business is too dependent on external factors. With the price of Bitcoin fluctuating wildly, its performance also followed a roller coaster, showing strong cyclicality.

2️⃣ Planning the transition

Once the #AI large models emerged, the demand for computing power exploded. The management of #IREN quickly realized: "Wait a minute, my core assets are not just mining machines, but electricity and data centers!"

Cheap electricity and huge server rooms can be used to run high-performance GPUs and provide AI cloud computing services.

In simple terms, it used to be "mining for gold," but it was mining a highly volatile ore (#BTC); now it has discovered that using the same "mine" to extract AI computing power is more valuable and sustainable.

Thus, it continuously invested the cash flow earned from mining into GPUs and #AI cloud services, completing the transformation from "miner to AI infrastructure provider."

3️⃣ Transformation brings exponential growth in financial reports

The latest financial report for the fiscal year 2025 directly tells the market: the transformation has worked!

✅ Revenue explosion: Income reached 501 million dollars, a year-on-year increase of 168%.

✅ Turning losses into profits: Last year, it lost 28.9 million dollars, but this year it made 86.9 million dollars.

✅ AI business takeoff: Revenue from #AI cloud services skyrocketed from 3.1 million dollars to 16.4 million dollars. Although the scale is still small, the growth rate is astonishing, and the gross margin is higher.

Mining is still profitable: With electricity prices as low as 3.5 cents per kilowatt-hour, the cost to mine one #BTC is only 36,000 dollars, while the average selling price is 99,000 dollars, leaving a huge profit margin.

4️⃣ Excitement among market and institutional investors

Investors are most excited about three main points:

① Major investment in AI GPUs

The company just spent 193 million dollars to buy 4,200 Nvidia Blackwell GPUs. Do you know what this means? It either indicates that customer demand is exceeding expectations, or it is preparing for larger-scale cloud services in the future. This is a strong signal for long-term growth.

② Valuation potential

Although the stock price has surged, many analysts believe that its market value has not fully reflected the potential of the AI business. The phrase everyone loves to use is: this is an "asymmetric upside opportunity"—the downside is limited, while the upside potential is enormous.

③ Military-grade certification

Recently, it also received the Blue UAS certification from the U.S. Department of Defense. Don't underestimate this; it is not just an ordinary qualification, but a "military endorsement." Once the news broke, the stock price soared by 27% on the same day. This also explains why large institutional investors rushed in.

Personally, I feel that there are many asymmetric good opportunities in the #AI sector right now, and #IREN is a typical example. It has transformed from a "green energy miner" into a "major player in AI infrastructure," while also gaining military credibility. Core advantages: cheap electricity + large data centers + cash flow supporting the transition + collaboration with #Nvidia. Shortcomings: Bitcoin is still the main revenue source, and income volatility cannot be completely eliminated; the AI cloud business is still in its infancy and has not yet reached a level that can fully support its market value.

Therefore, I will consider #IREN as a high-elasticity, high-potential story stock:

In the short term, it relies on Bitcoin mining to support its performance, while in the long term, it depends on AI cloud services to support its valuation. If the AI business really takes off, it could completely transform from a "small-cap miner" to a "computing power giant." I will continue to buy and hold as long as it stays below 30 dollars! 🧐

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