If Warren Buffett Was Into Bitcoin, He’d Buy This Stock

~5-minute read

This company is outpacing NVIDIA, Meta, and Microsoft.

Every time I hear someone say “tenbagger” (a stock that’s gonna 10x), I assume it’s some sketchy small cap with zero profits.

But for the first time in my 10 years of investing, I think I actually found one.

Meet IREN (Iris Energy)—the most efficient Bitcoin miner in the world. But here’s the plot twist: they’re not just mining Bitcoin with 100% sustainable energy. They’re also in the AI infrastructure game.

Wait… what?

AI is like a genius toddler—it needs massive, high-powered computers to learn and grow. Bitcoin mining also requires those computers. IREN has extra computing power, so they rent it out to companies training AI models.

And they’re not stopping there. They’re also building new data centers for AI and have secured the land and energy to scale even further.

Two mega trends, one company.

AI is eating the world, and data centers are the all-you-can-eat buffet.

BCG predicts companies will pour $1.8 trillion into data centers by 2030. That’s more than the entire GDP of Sweden, Norway, Denmark, and Finland—combined.

But here’s the kicker: there’s not enough power to keep up. Morgan Stanley says the U.S. will be short 36 GW of data center power by 2028. That’s enough to power New York City three times over.

This is where IREN flexes. They’ve already secured 2.3 GW of grid-connected power and own 1,300 acres of land—that’s 2.5 times the size of Monaco—primed for massive AI-ready data centers. And by H2 2025, they’ll have a 75 MW liquid-cooled facility, optimized for NVIDIA’s Blackwell chips, the gold standard for AI computing.

And you know Buffett loves moats. Land and energy are scarce—you can’t just spin up new power infrastructure overnight. High-performance data centers require massive upfront capital, and IREN locked in funding back when money was cheap. Now, while others are scrambling for cash in today’s high-rate environment, IREN is already building.

IREN isn’t some wild crypto moonshot—it’s a cash-flowing beast with real skin in the game. Revenue is growing 100%+ year over year, the company is profitable, and it runs with high capital efficiency. Founded in 2018 by two Australian brothers, they each own 4,500 shares worth $33 million. That’s some serious conviction. And they’re not the only ones betting big—BIT Capital, one of Europe’s best funds, owns a $100M stake (6% of the company).

IREN isn’t just a “maybe” play—it’s already delivering and outperforming its peers.

So, what’s next?

Alright, so we’ve established: IREN is profitable, growing, undervalued, and crushing the competition.

But where’s the next leg of growth coming from?

1. AI Deal Incoming?

IREN is sitting on prime real estate for AI: land, grid-connected power, and data centers—the three things AI companies are desperately hoarding.

In March, IREN hinted at "strong customer interest including single-tenant demand that far exceeds its 75MW data center capacity”.

Let’s put that into perspective: CoreWeave (another AI data center player) just locked in up to $12B from OpenAI in a five-year deal.

But here’s the kicker:

• CoreWeave has 1.3 GW of contracted power

• IREN has 75% more than that

And yet, CoreWeave is IPO’ing at a $23B valuation, while IREN sits at just $1.41B.

Here’s the math:

• IREN trades at 2.5x sales

• CoreWeave trades at 10x sales

• If IREN catches a similar AI deal, this stock is way too cheap

2. Bitcoin's Price Will Increase

Bitcoin is the only deflationary asset with a hard cap on supply. Governments are waking up:

• The U.S. holds $16.52B in Bitcoin and is open to buying more

• China holds $16.2B and might start accumulating more to compete with the US

• Bhutan, El Salvador, and Georgia already have Bitcoin in their national reserves

This is pure game theory—no finance minister wants to be the guy who waited until Bitcoin hit $150K before buying.

On top of that, pension funds and companies are stacking Bitcoin into their treasury —Tesla, Block, even Atai Life Sciences.

More demand. Limited supply. You do the math.

3. Exahash Expansion = More Bitcoin Mined

Exahash = Mining Power. The more exahash you have, the more Bitcoin you mine.

IREN is scaling from 31 EH/s → 52 EH/s by the end of 2025. That alone would increase revenue by ~50%.

4. Mining Hardware Gets Cheaper & More Efficient

Bitcoin mining hardware follows a simple trend—better tech, lower costs, higher efficiency.

Every year, new machines hit the market, allowing miners to:

✅ Mine more Bitcoin

✅ Use less energy

✅ Lower costs as older models get cheaper

Which means… IREN keeps getting more profitable over time.

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What Could Go Wrong?

1️⃣ No AI Hyperscaler Deal

So what if IREN doesn’t land a major AI deal?

Here’s the safety net: They’ve already received offers to sell their land for way more than they paid.

Dan Roberts (IREN’s Co-Founder) said in a podcast that they refused to sell because running data centers long-term is worth more than a quick cash-out.

Worst case? They flip the land for a profit. Best case? They sign a great AI deal and we’re off to the races.

2️⃣ Bitcoin Crashes

What if Bitcoin tanks?

Bitcoin would have to drop below $55K before IREN’s mining business stops being EBITDA profitable.

And even if that happens… they’ve got another lifeline:

• AI Cloud Services already pulled in $1.2M in February alone

• Gross margins? A ridiculous 96%

Even in a bear market, IREN has options—thanks to a rock-solid balance sheet.

They’re sitting on $1.29B in equity, with $566M in debt and a healthy $427M in cash.

Translation? They’re not desperate for funding, and they have the runway to keep building.

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IREN is my biggest position. I see it hitting $20+ this year—a 3x from here. But hey, don’t just take my word for it—dig in and do your own research. The stock market is unpredictable—anything can happen.

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