Global investment firm Bernstein has significantly increased its price target for Bitcoin mining company Iris Energy (IREN), citing the recent landmark $9.7 billion cloud services agreement with technology giant Microsoft. This strategic partnership represents one of the largest corporate commitments to blockchain infrastructure development and positions IREN for substantial revenue growth beyond traditional cryptocurrency mining operations.
The decade-long agreement will see IREN provide cloud computing services to Microsoft, diversifying the miner’s revenue streams while leveraging its existing data center infrastructure. This move demonstrates how Bitcoin mining companies are evolving beyond pure-play digital asset production to become comprehensive infrastructure providers in the technology sector.
Analysts at Bernstein highlighted that this partnership substantially de-risks IREN’s business model while providing predictable long-term cash flows. The firm noted that the Microsoft agreement validates IREN’s operational capabilities and technical infrastructure, potentially opening doors to similar enterprise partnerships. This development comes as Bitcoin miners increasingly seek to monetize their substantial computing power and data center investments through alternative revenue channels.
The upgraded price target reflects Bernstein’s confidence in IREN’s ability to execute this partnership while maintaining its Bitcoin mining operations. The investment firm believes this strategic shift could establish a new benchmark for how mining companies leverage their infrastructure assets to create sustainable business models in the evolving digital economy.
