The Unexpected Rival Threatening to Shake Up CoreWeave's Market
Key Points
Iren is taking a thoughtful and gradual approach to grow AI infrastructure.
It uses Bitcoin mining revenue to invest in AI cloud expansion.
Iren's business is at an inflection point.
- 10 stocks we like better than Iren ›
CoreWeave (NASDAQ: CRWV) generated incredible excitement when it went public in March 2025. Shares soared from their initial public offering (IPO) price of $40 to over $180 per share within just a few months.
That was because the company had been building out compute capacity to support cloud services requiring significant processing power for several years. That's exactly what artificial intelligence (AI) labs need, and CoreWeave continues to expand its AI infrastructure.
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But investors are noticing a competitor with a different approach that gives it an advantage on the path to profitability. That company is Iren (NASDAQ: IREN), and it is one investors should dig into.
Image source: The Motley Fool.
AI cloud demand
Iren was running a profitable business when management made a pivotal decision. The Bitcoin miner had a record fiscal 2025, reporting almost $87 million in net income for the period, which ended June 30, 2025. But the company realized its assets could be more valuable when offered for high-performance compute needed by AI developers.
Iren gradually began funneling its Bitcoin mining revenue into growing infrastructure for those AI cloud services. It still generated nearly half of its revenue from Bitcoin mining in the latest quarter, but that puts the business at an inflection point. In the prior quarter, more than 75% of revenue came from Bitcoin operations.
Now, its investments into AI infrastructure are beginning to drive the business forward. For the full fiscal year, AI cloud service revenue rocketed nearly eight times higher than in fiscal 2025.
That makes it a good time for investors to get on board.
Iren's inflection point
Iren is again reporting net losses due to its business strategy. Platform investments and cash impairments for decommissioning Bitcoin hardware and expanding cloud services are needed to support growth and the AI cloud transition.
Wall Street analysts are beginning to voice support for Iren's plan. JPMorgan Chase analyst Richard Choe has upgraded his firm's rating from a sell equivalent to a buy, skipping the "hold" level entirely. He increased the price target from $46 to $65 per share, reports Barron's. That represents roughly 50% upside from the levels of Sept. 18.
The firm sees Iren gaining traction in acquiring new customers and believes its strategic alliance with AI leader Nvidia has enhanced its credibility. The results are apparent, with AI cloud revenue more than doubling over the last two quarters.
Some analysts speculate that Iren's full transition away from Bitcoin mining will continue until the end of the decade. The stock will react as it makes progress toward that end, however. Now is the time for investors to take action as Iren shakes up the neocloud market.
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JPMorgan Chase is an advertising partner of Motley Fool Money. Howard Smith has positions in Iren and Nvidia. The Motley Fool has positions in and recommends Bitcoin, JPMorgan Chase, and Nvidia. The Motley Fool has a disclosure policy.
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