Bitcoin miner IREN (IREN) rose almost 30% on Wednesday after executives mentioned the corporate had acquired curiosity from a synthetic intelligence (AI) agency and talked about a possible dividend in BTC throughout an earnings convention name.
The Sydney-based firm has been approached by a hyperscaler agency (giant cloud service supplier) for doubtlessly internet hosting computing infrastructure at IREN’s Sweetwater mining web site in Texas, co-CEO and co-founder Daniel Roberts mentioned on the decision.
“Two hours ago, we got an email from a trillion-dollar hyperscaler that said they weren’t interested in Sweetwater, and now they are,” Roberts mentioned with out giving out too many particulars.
“We will continue not to provide guidance on specific terms or timing, given the uncertainties. Given the nature that we are dealing with counterparties, it is not all within our control. However, we continue to progress negotiations with some very large counterparties and hyperscalers,” he mentioned.
IREN is considered one of many miners making an attempt to diversify their income sources by securely internet hosting massive tech corporations’ knowledge facilities for operating machines to help surging demand for AI and high-performance computing (HPC). The shift began earlier this yr after Bitcoin’s fourth halving lower rewards by 50%, squeezing miners’ revenue margins. Rival Core Scientific (CORZ) began the development by signing AI internet hosting offers for billions of {dollars}, resulting in its inventory value surging and others to comply with swimsuit.
Learn extra: Bitcoin Miners at a Crossroads: Acquire Market Share or Go All-In on AI?
The mining firm, previously referred to as Iris Power, appointed Morgan Stanley in July to doubtlessly monetize its mining amenities for the AI knowledge heart market. Its share value, nevertheless, languished most of this yr and underperformed friends after a quick vendor mentioned considered one of its websites wasn’t appropriate for that sort of labor.
Feedback from the convention name may need modified market notion because the inventory outperformed on Wednesday.
‘Highly effective’ cashflow
Executives additionally mentioned bitcoin’s surge to near-record highs could allow the corporate to pay a dividend.
“The achievement of positive operating cash flows may support a potential for investor distribution in calendar year 2025,” CFO Belinda Nucifora mentioned.
The transfer would seemingly be seen as constructive by the market, as many buyers wish to acquire publicity to the surging bitcoin value. Except for spot shopping for, merchants are additionally seeking to purchase into the bull market via both exchange-traded funds or publicly traded corporations akin to MicroStrategy (MSTR) and MARA Holdings (MARA) which are buying bitcoin.
With IREN mining bitcoin at a considerably decrease value of about $29,000 in contrast with the market value of round $96,000, co-CEO Roberts mentioned the corporate has alternatives to build up BTC at discounted costs, versus different corporations that pay spot costs.
“When you look at the market today and you see a number of different companies accumulating bitcoin on their balance sheet, paying market price or close,” Roberts mentioned. “I think the opportunity to generate $29,000-cash-cost bitcoin for investors and effectively distribute that coin out either through the physical coin … or as cash flow is pretty powerful,” he added.
Learn extra: Iren Is Positioned to Change into One of many Greatest Listed Bitcoin Miners: Canaccord
