Investment bank Jefferies: bullish on IREN AI cloud business, with an expected 30% upside potential

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Golden Finance reports that on June 19th, investment bank Jefferies initiated coverage of Bitcoin mining company IREN, which is transitioning into AI infrastructure, with a "Buy" rating and a target price of $79, representing approximately 30% upside potential from the current stock price of about $60.50.
Jefferies believes that IREN has a unique advantage among listed AI infrastructure peers, mainly due to its massive global power portfolio (about 6 gigawatts), proprietary data center assets, and its growing GPU cloud business. Currently, the company is only utilizing about 10% of its power resources.
Analysis indicates that IREN's strategy of independently operating AI cloud infrastructure is more valuable in the long term than simply leasing data center capacity. Over a 10 to 20-year horizon, its AI cloud construction return supported by Microsoft is approximately 21%, compared to only 13% for the colocation model. With contracts from Microsoft and Nvidia, IREN is expected to achieve about $3.1 billion in annual recurring revenue.
Recently, IREN has accelerated its global expansion, announcing the acquisition of Spanish AI data center developer Nostrum this week, adding approximately 490 megawatts of power in Europe. A few weeks ago, it also announced plans for an 800-megawatt data center park in South Australia.
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