Australian Brothers' Company Sees Significant Growth After Pivoting to AI Thesis

IREN is a cryptocurrency mining company founded by two Australian brothers that has seen significant growth after pivoting to the AI thesis. The company's stock price has increased over 300% this year, making it a $17 billion company.

The company started in 2018 when Daniel and Will Roberts saw an opportunity to use renewable energy to mine Bitcoin at attractive returns. IREN went public on the NASDAQ in November 2021, raising ~$232 million at a $1.5 billion valuation.

However, concerns have been raised about the potential for a supply glut in the data centre market and the depreciation schedule of GPUs. The company has secured a $9.7 billion five-year GPU deal with Microsoft, but this contract accounts for roughly 55% of its 2026 AI Cloud revenue target.

The AI data centre market is expected to grow significantly by 2030, with estimates ranging from 2-3 times the current capacity. However, there are risks associated with a supply glut and the potential obsolescence of GPUs.