Shares of IREN, a Bitcoin mining company in Australia, surged nearly 30% after the quarterly earnings announcement. The company received significant interest from AI businesses and revealed the potential for dividend payouts by #bitcoin☀️ in 2025.
Key highlights
• Collaboration with AI companies: IREN is negotiating with major partners in the AI industry to provide infrastructure at the Sweetwater mining site in Texas, USA.
• Bitcoin dividend plan: CFO Belinda Nucifora stated that positive cash flow could support dividend payments in 2025, providing an attractive opportunity for investors as $BTC is approaching record highs.
• Low mining costs: With mining costs of approximately $29,000/Bitcoin, IREN has a significant advantage as the current market price is around $96,000.
Shifting towards the AI market
IREN, formerly Iris Energy, is expanding its operations by providing data center hosting services for AI businesses, capitalizing on the increasing demand for high-performance computing (HPC). This trend has been driven by the recent Bitcoin halving event, which has reduced miners' profits.
Competitor Core Scientific (CORZ) has been at the forefront of the AI collaboration wave, signing billion-dollar contracts and encouraging other mining companies, including IREN, to follow suit.
Long-term vision
IREN appointed Morgan Stanley in July to explore opportunities for commercializing mining facilities for the AI market. Co-CEO Daniel Roberts stated that the company is negotiating with several major partners and sees strong profit potential from low Bitcoin prices.
IREN not only leverages the advantage of low mining costs but is also expanding into the high-tech sector, creating significant growth opportunities as AI and Bitcoin become global trends.