Why Bernstein Just Boosted Its Price Target for Bitcoin Miner IREN

Global investment firm Bernstein has upgraded AI computing company IREN, raising its price target from $75 to $125 following IREN's announcement of a substantial $9.7 billion cloud services agreement with Microsoft. This deal highlights how Bitcoin miners can leverage their energy capabilities to meet the increasing demand for AI services. IREN shares saw a boost of about 2% following the announcement, reflecting market optimism. IREN will provide Microsoft access to advanced NVIDIA GPUs under the five-year agreement. Analysts noted the advantage of IREN’s power accessibility in a power-constrained market, which positions it favorably to maximize profits. This collaboration exemplifies a trend where Bitcoin miners are transitioning to cater to the needs of the AI industry. The IREN-Microsoft deal is part of a larger pattern as major tech companies seek partnerships with cryptocurrency miners for their data center needs amidst the growing emphasis on AI capabilities. Other miners like Cipher Mining are also securing significant agreements with tech giants to fulfill similar requirements.

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