Iris Energy's Rising Potential
According to Canaccord, Iris Energy is on track to become one of the largest publicly listed Bitcoin miners. The broker has raised its share price target from $12 to $15, maintaining a buy rating on the stock.
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Key Highlights from the Report
- Power Supply and HPC Options: Iris Energy has significant power resources and is integrating high-performance computing (HPC) capabilities, which is vital as it launches its pilot in Childress, Texas.
- Building Capacity: The company is constructing 510 megawatts (MW) of data centers in 2024 and has secured a 2,160 MW power capacity with a pipeline exceeding 1 gigawatt (GW).
- Market Position: Analysts noted that few Bitcoin miners have comparable power availability, positioning Iris Energy favorably as it scales operations.
Market Trends and Challenges
Despite a recent 14% slump in share prices following skepticism about the suitability of their Childress site for AI and HPC, the stock is currently trading at $11.06, up 1.6% in early trading. The report emphasizes that Bitcoin mining remains a strong revenue driver for the company, aiding infrastructure investments.
Future Opportunities
Canaccord believes that Iris Energy will leverage its infrastructure for multiple revenue streams, including Bitcoin mining, AI cloud services, and AI colocation. As mining stocks have been revalued lately due to the rising interest in AI applications, Iris Energy is well-positioned to capitalize on these trends.
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