Bitcoin (BTCUSD) mining companies were expected to quickly go bust as they were unable to cope with Bitcoin's block rewards being halved in the last halving event. These companies use GPUs to mine Bitcoin, and the same hardware can be used for artificial intelligence (AI) and cloud computing purposes. The company recently doubled its AI cloud capacity to 23,000 GPUs after purchasing an additional 12,400 units for approximately $674 million. IREN is now targeting $500 million in AI cloud annualized recurring revenue (ARR) by the first quarter of 2026. Bitcoin mining generates approximately $1 billion in annualized revenue under current market conditions, and its AI cloud business is scaling at nearly 100% incremental margins.