Jefferies initiated coverage of bitcoin miner-turned-AI infrastructure provider IREN with a $79 price target, projecting the company's GPU cloud strategy will generate higher returns than data center leasing over 10 to 20 years. The investment bank estimates IREN's approach could deliver roughly 21% returns on its Microsoft-backed AI cloud buildout versus 13% under a colocation model. Jefferies highlighted IREN's differentiation among publicly traded AI infrastructure peers stems from its 6 gigawatts of secured power globally—only around 10% currently utilized—along with owned data center assets and growing GPU cloud business.
Jefferies Projects 21% Returns on IREN GPU Cloud Strategy
Jefferies estimates IREN has access to roughly 6 gigawatts of secured power globally, with only around 10% currently utilized. The firm's analysis projects IREN's GPU cloud strategy could generate higher total cash flows than reverting facilities to a colocation model when examining a 10 to 20 year timeline. At that point, the gap widens, with Jefferies estimating returns of roughly 21% on IREN's Microsoft-backed AI cloud buildout versus 13% under a colocation model, according to notes shared by VanEck's Head of Digital Asset Research Matthew Sigel.
![IREN AI cloud vs colocation model projections]()
IREN AI cloud vs colocation model projections. Source: Jefferies
"Anchored by investment-grade tenant credit, the Microsoft and Nvidia contracts position IREN to deliver $3.1 billion of annual recurring revenue," Jefferies wrote, according to the summary shared by Sigel.
IREN Holds $250 Million to $900 Million for Future Projects
Jefferies highlighted IREN's balance sheet strength. After accounting for GPU and data center spending, the firm estimates IREN has roughly $250 million for future projects, though Sigel argues that number is conservative and could be closer to $900 million when taking recent capital raises into account.
IREN Acquires 490MW Spanish Developer and Announces 800MW Australia Campus
The Jefferies coverage initiation comes amid major expansion of IREN's global AI footprint. Earlier this week, the company announced the acquisition of Spanish AI data center developer Nostrum, adding around 490 megawatts of grid power in Europe. Weeks earlier, IREN unveiled plans for an 800-megawatt data center campus in South Australia to serve AI demand across the Asia-Pacific region.
IREN shares were up 4% on Wednesday afternoon, trading at about $60.50 according to The Block's equities price page, implying roughly 30% upside to Jefferies' $79 price target.
FAQ
What price target did Jefferies set for IREN stock?
Jefferies initiated coverage of IREN with a $79 price target, representing roughly 30% upside from the Wednesday afternoon trading price of about $60.50.
How much secured power does IREN have access to globally?
Jefferies estimates IREN has access to roughly 6 gigawatts of secured power globally, with only around 10% of that capacity currently being utilized.
What return projections did Jefferies make for IREN's GPU cloud strategy?
Jefferies projects IREN's GPU cloud strategy could deliver roughly 21% returns on its Microsoft-backed AI cloud buildout versus 13% under a colocation model over a 10 to 20 year timeline.
