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After the company's late Tuesday earnings release, Iren, a Bitcoin miner, observed a sharp rise in price on Wednesday. In the meantime, after Tuesday's loss, the price of bitcoin had a strong recovery.
Iren (IREN), formerly referred to as Iris Energy recorded a $51.7 million reduction in the first quarter of 2025, which was greater than the $27.1 million loss and below the $14.5 million loss FactSet estimated.
Bitcoin Falls, AI Revenue Rises
Due to decreasing bitcoin prices and increased mining difficulty, bitcoin mining profit fell more than 8% to $49.6 million. Because of the rise in network difficulty and the decreased supply event earlier in the year, the business stated that 813 Bitcoins were reduced during the quarter, compared to 821 Bitcoins in Q4. FactSet analysts estimated $55.3 million in income from Bitcoin mining.
Iren explained the 28% increase in AI cloud services income to the higher GPUs placed into operation in April, totalling $3.2 million.
Iren Plans Growth in Loss
Iren believes that its Bitcoin mining ability will rise from about 31 exahash per second (EH/s) in 2024 to 50 EH/s in the first half of 2025. In the second half of the year, the business estimated that its hash value would reach 50 EH/s.
According to Iren, 1,896 Nvidia (NVDA) H100 and H200 GPUs have been added to its AI cloud service, and contracts for its current potential are still being signed. The miner says it's "organized on measured growth, only in response to customer needs.”
Analysts Increase Price Targets for IREN
According to The Fly, Canaccord and H.C. Wainwright both increase their price targets for IREN stock after missing net income projections. In a research note, H.C. Wainwright claimed that Iren's timetable is quickening and that it is on track to become one of the first public Bitcoin miners to reach 50 EH/s.
Additionally, the company estimates that shares will "surge higher on a more bullish outlook for 2025." H.C. Wainright managed to buy suggestions on Iren's shares and increased its price target from 13 to 16.
According to Canaccord, Iren's strategy has changed significantly because it has one of the best at-scale power costs compared to its rivals. Along with a ramp-up in hash value and bitcoin's price beyond $90,000, the company took its buy recommendation on IREN stock and raised its price target by 2 to 17.
Iren Stock and Bitcoin Price Action
On Wednesday, bitcoin miners noticed a spike as IREN's shares increased by about 30%. Hive Digital (HIVE), Mara Holdings (MARA), CleanSpark (CLSK), and Bit Digital (BTBT) all reported daily rises ranging from 6.4% to 18.5%. Two crucial IBD indicators of growth-stock quality, EPS Ratings and Composite Ratings, are usually low for bitcoin miners.
Meanwhile, on Wednesday afternoon, Bitcoin was close to $96,700. On Tuesday, the cryptocurrency's price decreased to $90,784. Bitcoin jumped to a record high of $99,768 following the US elections. At $100,000, though, the cryptocurrency has faced strong opposition.
So far this year, Bitcoin has increased by 130%. Coinbase (COIN) jumped 6% higher, among other cryptocurrency stocks. On Wednesday, MicroStrategy (MSTR) raised by about 10%.
