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Key Takeaways

• Iren leads the Bitcoin infrastructure space, supported by execution strength and stronger share performance.
• Iren Limited is shifting from mining to AI, targeting a $3.4 billion ARR via a major GPU expansion by the end of 2026.
• Hut 8 faces volatile earnings tied to Bitcoin prices, power costs, and delays monetizing its 8.65 GW pipeline.

Iren Limited (IREN - Free Report) and Hut 8 Corp. (HUT - Free Report) are established players in the Bitcoin infrastructure space, operating large-scale mining and data-center platforms. Iren is best known for low-cost, renewable-powered Bitcoin mining, and the company is expanding into AI computing. Hut 8, by contrast, offers a diversified platform that includes mining, hosting, and digital infrastructure services.

Their key similarity is that both provide leveraged exposure to Bitcoin through physical infrastructure. Each company relies on access to power, efficient data centers, and scaling computing capacity rather than simply holding Bitcoin on its balance sheet.

As Bitcoin volatility continues and AI data-center expansion increases energy demand, miners are evolving beyond pure Bitcoin production. Investors are closely watching which companies can scale their infrastructure most profitably.

The Case for Iren Stock

Iren Limited offers end-to-end vertical integration, designing, building, and operating its own data centers and GPU stacks, which eliminates third-party colocation risks and increases cost control. The core strength of its Bitcoin infrastructure is its 3 gigawatts of secured power capacity across the United States and Canada, located in renewable-rich regions, which provides long-term cost stability and scalability for power-intensive workloads like Bitcoin mining.

Iren’s growth opportunity centers on shifting Bitcoin infrastructure toward AI computing. The ASIC-to-GPU conversion in British Columbia, targeted for end-2026, supports expanding the GPU fleet from 23,000 to 140,000 units and addressing a $3.4 billion AI cloud ARR opportunity.

From a valuation and capital perspective, Iren has significantly strengthened its balance sheet, ending October 2025 with $1.8 billion in cash, supported by zero-coupon convertible notes and asset-backed GPU financing.

Despite strong growth potential, Iren’s cryptocurrency operations are exposed to Bitcoin volatility, rising global hashrates, and power market variability. Further, the scale of AI-related spending may pressure margins, with the Microsoft contract alone requiring approximately $5.8 billion in GPU capex. Incremental spending on high-density infrastructure upgrades and multi-phase expansion at Childress, British Columbia, and Sweetwater adds to financing and execution risk.

The Zacks Consensus Estimate for Iren’s fiscal 2026 revenues indicates an increase of 119.6%. The consensus mark for earnings is pegged at 64 cents per share, down by 19% over the past 30 days. However, this still reflects a strong year-over-year turnaround from earnings of just 4 cents per share.
 

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The Case for Hut 8 Stock

Hut 8’s infrastructure model continues to face execution and valuation risks, with earnings heavily tied to Bitcoin price movements. Its financial results remain highly sensitive to power costs and post-halving economics, while recent profitability has been driven more by digital asset gains than core operating performance, underscoring elevated exposure to cryptocurrency market volatility.

Operationally, the wind-down of the Ionic Digital managed services agreement led to a sharp decline in Power segment revenues, exposing counterparty concentration risk and instability in legacy infrastructure earnings. At the same time, Hut 8’s substantial 8.65 GW development pipeline has yet to be monetized, limiting market acceptance until implementation milestones are achieved.

However, Hut 8’s infrastructure base has strategic merit. With 1,020 MW of managed power capacity and a fleet efficiency of 16.3 J/TH, the company is better positioned in terms of operating costs than many competitors. Importantly, Bitcoin mining acts as a bridge, allowing Hut 8 to generate revenue from its infrastructure today while keeping the flexibility to move into higher-value compute over time.

The Zacks Consensus Estimate for Hut’s 2026 loss is currently pegged at 90 cents per share, widening by 32 cents over the past 30 days and deteriorating sharply year-over-year, reflecting lingering concerns over long-term profitability.
 

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Iren vs. Hut 8: Price Performance & Valuation

Both stocks have made significant gains over the past year, but Iren Limited has clearly outperformed. Iren soared 335.5% during the period compared to a 113.5% gain for Hut 8. Iren’s outperformance reflects decisive execution in AI infrastructure. A landmark Microsoft contract, high-margin vertically integrated AI cloud model, and visible multi-year ARR sharply contrast with Hut 8’s Bitcoin-linked earnings volatility and less mature AI platform.

Iren vs. Hut 8: Stock Performance
 

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Both Iren Limited and Hut 8 shares are currently overvalued, as suggested by a Value Score of F. In terms of the trailing 12-month price/sales ratio, Iren Limited has been trading at 7.3X, which is lower than Hut 8’s 13.43X. Iren’s lower valuation is supported by strong revenue visibility, disciplined execution, and lower risk.

Iren vs. Hut 8: Valuation - P/S Ratio (Forward 12-Months)
 

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Conclusion

Iren Limited stands out as the more attractive infrastructure stock backed by its vertically integrated platform, visible AI-driven revenue pipeline, and stronger balance sheet. While both companies remain exposed to Bitcoin volatility, Iren’s ability to flex capacity between mining and AI computing provides superior downside protection and long-term scalability. Compared with Hut 8’s uneven execution and widening losses, Iren Limited offers a clearer and more resilient growth path.

This divergence in execution and visibility is clearly reflected in the rankings, with Iren Limited carrying a Zacks Rank #3 (Hold) rating at present, while Hut 8 maintains a Zacks Rank #4 (Sell) rating. Investors may consider waiting for a better entry point for Iren, while avoiding Hut 8’s stock for now.

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