In a recent research report, Canaccord has increased its share-price target for Iren to $15 from $12, citing the company’s ample power supplies and high-performance computing options.
Iren’s Position in the Bitcoin Mining Market
As one of the biggest publicly listed bitcoin miners, Iren is well-positioned to become a leader in the industry. With an extensive pipeline of 1 gigawatt (GW) plus development projects, the company has secured 2,160 megawatts (MW) of power capacity and is building 510 MW of data centers in 2024.
A Strong Foundation for Growth
Iren’s infrastructure is designed to support not only bitcoin mining but also cloud computing and AI colocation. The company’s management team has demonstrated a keen understanding of the market and is well-prepared to adapt to changing circumstances.
Monetization Opportunities Abound
As Canaccord noted in its report, Iren has several opportunities to monetize the infrastructure it is building. These include:
- Bitcoin Mining: A proven value proposition that helps pay for infrastructure build-outs.
- AI Cloud: The company can leverage its data centers and power capacity to offer cloud services to AI users.
- AI Colocation: Iren’s facilities can be used to host AI workloads, providing a new revenue stream.
Rerating of Mining Stocks
The recent deal between Core Scientific (CORZ) and cloud computing firm CoreWeave has led to a rerating of mining stocks. JPMorgan (JPM) notes that the market is now considering alternative and more accretive use cases for bitcoin mining sites, including AI and HPC opportunities.
Iren’s Shares Still Undervalued
Despite the increased share-price target, Iren’s shares are still trading below their pre-slump level of almost $14. Given the company’s strong foundation and growth prospects, investors may want to consider taking a closer look at Iren’s stock.
Management’s Opportunistic Approach
Canaccord believes that Iren’s management team will be opportunistic in expanding the use case for its data centers beyond bitcoin mining. The company is well-prepared from a power, cooling, and network perspective to adapt to changing market conditions.
Conclusion
In conclusion, Canaccord’s increased share-price target for Iren reflects the company’s strong position in the bitcoin mining market and its growing opportunities in AI cloud and colocation. With a solid foundation and management team in place, investors may want to consider taking a closer look at Iren’s stock.
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