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- Iris Energy is set to emerge as one of the largest publicly traded bitcoin miners with high-performance computing (HPC) options, according to broker Canaccord.
- Canaccord has increased its price target for Iris Energy shares from $12 to $15.
- The report indicated that the bitcoin miner possesses significant power resources and high-performance computing capabilities.
- Iris is able to capitalize on the infrastructure it is developing for bitcoin mining, cloud computing, and AI colocation, the broker noted.
Iris Energy (IREN) is on track to become one of the most efficient and largest publicly listed bitcoin {{BTC}} miners, with high-performance computing (HPC) options as it initiates its pilot project in Childress, Texas in the latter half of the year, according to a research report from broker Canaccord released on Tuesday.
As the Sydney-based firm expands its operations, there are very few bitcoin miners that have access to the same level of power, the report stated.
“The company is constructing 510 megawatts (MW) of data centers in 2024, has secured 2,160 MW of power capacity, and possesses a development pipeline exceeding 1 gigawatt (GW),” analysts led by Joseph Vafi wrote.
The broker has raised its share-price target for the company to $15 from $12 while keeping its buy rating intact. Iris Energy was trading 1.6% higher at $11.06 in early Wednesday trading on Nasdaq.
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Mining stocks have been reassessed in recent months following Core Scientific’s (CORZ) artificial intelligence (AI) agreement with cloud computing company CoreWeave.
This indicates that the market perceives AI and HPC opportunities as potential alternative and more beneficial applications for bitcoin mining locations, according to a report from Wall Street giant JPMorgan (JPM) last week.
Earlier this month, Iris Energy shares fell by 14% after a short seller claimed that the Childress site was unsuitable for hosting artificial intelligence or high-performance computing. The shares remain significantly below the pre-decline level of nearly $14.
Considering that Iris Energy primarily operates as an infrastructure company, “we believe management will be strategic in broadening the use case for its data centers beyond bitcoin mining and is well-equipped from a power, cooling, and network standpoint,” Canaccord stated.
Bitcoin mining serves as a validated value proposition for Iris Energy and also contributes to funding infrastructure developments, the note mentioned.
There are multiple avenues through which the company can monetize the infrastructure it is establishing, “including bitcoin mining, AI cloud, and AI colocation,” the report concluded.
