As a seasoned crypto investor with a keen interest in mining stocks, I have been closely monitoring the developments at Iris Energy (IREN) with great anticipation. The recent tip from Canaccord Genuity, a reputable broker, that Iris Energy could become one of the most efficient and largest publicly listed Bitcoin miners has only fueled my excitement.
Expert’s perspective: Canaccord Genuity, a well-known brokerage firm, anticipates that Iris Energy (IREN) will emerge as one of the most effective and largest publicly traded Bitcoin miners due to its potential in high-performance computing (HPC). This optimistic view stems from Canaccord’s analyst team’s thorough investigation into Iris Energy’s upcoming pilot project in Childress, Texas, which is scheduled for launch in the second half of 2024.
Based on Canaccord’s analysis, Iris Energy stands out among its mining industry peers with an unusually large arsenal of power resources at its disposal. The research report highlights this point.
In the year 2024, the company intends to construct data centers with a total capacity of 510 megawatts (MW). They have already secured a power capacity of approximately 2,160 megawatts (MW), and they have plans under development for data centers with a capacity exceeding one gigawatt (GW).
Based on Iris’s mining capabilities, the broker has increased its predicted share price for the company from $12 to $15. However, Canaccord has kept its buy recommendation unchanged.
Additionally, Canaccord Genuity expressed their belief that Iris Energy will generate significant impact not just limited to its mining business. The analysts at Canaccord made this statement regarding Iris Energy.
Management is likely to seize chances to broaden the applications of their data centers beyond just Bitcoin mining. They are adequately prepared with an ample power supply, effective cooling systems, and robust networking infrastructure for this expansion.
Iris Energy Flourishes as Mining Stocks Boom
In the meantime, it’s important to mention that mining stocks have experienced notable increases over the past few months. This upward trend began following Core Scientific’s (CORZ) announcement of a partnership with cloud computing company CoreWeave in June.
Last week, JPMorgan, a prominent player on Wall Street, indicated that the market seems to view the recent deal as opening up potential alternatives for Bitcoin mining in the areas of artificial intelligence (AI) and high-performance computing (HPC).
Fortunately, Iris Energy hasn’t been excluded from the current market uptrend, with its stock trading 1.6% up at $11.06 per share on Nasdaq in early Wednesday deals. Although this represents a significant increase, Iris Energy’s shares still have a long way to go before recovering from their sharp decline earlier this month when they dropped by 14%. This price plunge occurred following a short seller’s criticism of the company’s Childress site as unsuitable for artificial intelligence or advanced computing on the Seeking Alpha platform. Prior to that, the shares were worth approximately $14 each.
Significantly, Iris mainly operates as an infrastructure provider. According to Canaccord’s analysis, there are several potential methods for Iris to generate revenue from the infrastructure it constructs. These options include Bitcoin mining, artificial intelligence (AI) cloud services, and AI colocation, as mentioned in the report.
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2024-07-24 18:17