On March 31, 2025, Australia's leading Bitcoin mining company – IREN – announced a surprising decision: to pause the expansion of Bitcoin mining operations to focus on AI data center and AI cloud services. With plans to achieve 52 EH/s mining capacity in the coming months, IREN is shifting its strategy, promising to create a new wave in the technology industry. Is this the right move to capitalize on the booming AI trend?


IREN's Shift: From Bitcoin to AI

#IREN has long been known for its Bitcoin mining operations using 100% renewable energy. However, in a recent announcement on Monday (March 31, 2025), CEO and co-founder Daniel Roberts stated: “As we near the completion of the 50 EH/s mining expansion phase, our focus is shifting to the next growth phase, concentrating on building expanded infrastructure for #AI and #HPC (high-performance computing).”


Currently, IREN has achieved a mining capacity of 35 EH/s and is expected to meet its goal of 52 EH/s in the coming months. At that point, the company's Bitcoin mining sector is expected to generate annual cash flow of up to USD 528 million. However, instead of continuing to expand mining, IREN has decided to reallocate capital to invest in AI data centers and AI cloud services – two sectors experiencing strong growth demand.


Why Did IREN Choose AI?

This decision is not arbitrary. The global AI market is booming, especially following the success of models like ChatGPT since 2022. AI companies require vast amounts of energy and infrastructure to operate, which IREN already possesses from its Bitcoin mining data centers. According to information from the web, IREN currently operates 1,896 GPUs, including high-end NVIDIA H100 and H200 hardware, generating an annual recurring revenue of USD 26 million from AI cloud services as of March 31, 2025.


Furthermore, IREN is developing the Horizon 1 data center (50MW) with an estimated cost of USD 300-350 million and the Sweetwater center (2GW) in Texas. The company has also begun negotiations with several potential customers to scale up AI. With a financial strategy combining upfront payments from customers, debt financing, and an ATM fund (which has raised USD 111 million), IREN is betting big on AI's potential.


Impact on the Crypto and AI Markets


  • Bitcoin (~88,000 USD): IREN's decision does not significantly impact Bitcoin prices, but may reduce the supply of new hashrate, affecting competition in the mining sector.


  • Mining sector: Other companies like Hut 8 (USA) are also transitioning to AI, indicating a trend of diversification in the Bitcoin mining industry.


  • AI in Australia: IREN's move may help Australia compete in the global AI race, but as Daniel Roberts warns, securing energy and infrastructure remains a significant challenge.



Market Reaction: Slight Drop in Stocks

Despite the promising new strategy, IREN's stock has fallen 2.1% in pre-market trading on March 31, 2025. This may reflect investor caution ahead of the shift from a familiar field (Bitcoin mining) to the more risky AI sector. However, with an expected cash flow of USD 528 million from Bitcoin mining, IREN has strong resources to invest in AI without causing financial strain.


Conclusion: Bold Move or Risky Gamble?

IREN's decision to pause Bitcoin mining expansion to focus on AI is a bold move, seizing the global technology trend. With existing infrastructure and abundant capital, the company has the potential to become a major player in the AI industry. But can IREN balance between Bitcoin mining and AI ambitions, or will this be a high-risk gamble? As Australia seeks to position itself in the AI race, the answer will soon be revealed.


Risk warning: Investing in crypto and AI technology carries high risks due to price volatility and rapid market changes. Please consider carefully before participating.