IREN Limited (IREN) shares have surged 5.8% in the past month, outperforming the Finance sector and Financial Miscellaneous Services industry. The company’s bitcoin mining revenues grew by 24% year over year in Q3 of fiscal 2025, mining 1,514 bitcoins. AI Cloud revenues also saw a 33% increase, propelling IREN’s stock up by 100.4% year to date.

Technically, IREN is trading above the 50-day and 200-day SMAs, indicating a bullish trend. With a strong focus on growing power infrastructure, IREN has become one of the world’s largest Bitcoin miners, achieving significant hashrate growth. The company has secured a 600MW grid connection agreement for its Sweetwater 2 project, solidifying its competitive position.

IREN is poised for expansion with plans to increase data center capacity to 910MW in 2025. The company is set to launch Horizon 1, a 50MW liquid-cooled data center for AI workloads. IREN recently acquired next-generation NVIDIA GPUs to enhance its capabilities. The Mackenzie fiber upgrade further supports the growth of AI Cloud services.

The Zacks Consensus Estimate for IREN’s Q4 earnings is 17 cents per share with revenues at $193.8 million. For fiscal 2025, the consensus estimates earnings of 14 cents per share and revenues of $515.8 million, showing strong growth potential. However, IREN’s shares are considered overvalued with a Value Score of D and a premium valuation in forward Price/Cash Flow.

Despite its promising prospects, IREN Limited’s stretched valuation and modest earnings growth pose risks for investors. With a Zacks Rank of #3 (Hold), investors are advised to wait for a favorable entry point. The company’s performance and future growth milestones, such as the energization of Sweetwater 1 and 2, will be crucial factors to watch.

Read more at Nasdaq: IREN Limited Jumps 6% in a Month: Buy, Sell or Hold the Stock?