Bitcoin and cryptocurrency mining requires a large amount of energy and computing power, which has caused environmental concerns. Australia-based IREN has turned the current model on its head, by using renewable energy sources, including solar and wind, to power bitcoin mining.
IREN stock is on pace for five straight weeks of gains and has risen for eight out of the last nine weeks. Demand for the green bitcoin mining stock, among IBD's 50 Growth Stocks To Watch, has been huge.
The company boasts it is one of the world's largest and most efficient bitcoin miners.
IREN owns and operates next-generation data centers and provides cloud services fueled by 100% renewable energy. It also powers GPUs, including Nvidia server platforms.
Its artificial intelligence cloud services are used for deep learning and anomaly detection. IREN has four facilities, including three in British Columbia, Canada, and one in Childress County, Texas.
On Tuesday, IREN said it reached its midyear goal of 50 EH/s, a measure of computational power.
The IBD 50 stock ranks No. 2 out of 76 stocks in the Financial Services-Specialty group, which holds the 27th spot out of the 197 industry groups that Investor's Business Daily tracks.
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IREN Stock And Its Demand, Soar
IREN started trading on Nov. 17, 2021, with an offer price of 28 per share. Currently, the IBD MarketSurge Growth 250 name is just over half that price, but has gained around 51% so far this year.
Shares are not in a base and the stock has gotten extended with its recent rapid run-up. Its 50-day moving average is rising, which is a positive sign for the stock.
IREN's IBD Relative Strength Rating has shot up to 97 from 74 four weeks ago as demand has been extremely high for the bitcoin miner.
And its volume has been enormous, as big money managers scoop up shares. Its IBD Accumulation/Distribution Rating of A+ indicates heavy institutional buying over the last 13 weeks. It has an average daily trading volume of over 18.6 million shares. On Tuesday, over 41.7 million shares of IREN traded hands.
Its beefy 3.2 up/down volume ratio shows positive demand over the last 50 days. In addition, management has a 6% stake in the green bitcoin miner.
Sales Look To Boom For Bitcoin Miner
IREN beat fiscal third-quarter earnings and sales estimates on May 14. Its third-quarter revenue growth of 172% followed 181% in the prior quarter.
"Our focus on large scale data center sites continues to drive rapid growth and strong margins," IREN co-CEO Daniel Roberts said in the earnings release. The company sees growth opportunities in new energy sources including green hydrogen.
Analysts' forecasts call for sales to increase between 102% and 304% over the next three quarters. For fiscal 2025 — which ended June 30 — estimates show a loss of one cent per share. But fiscal 2026 projections call for a profit of 91 cents per share.
Lastly, IREN holds a 98 IBD Composite Rating.
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