Bernstein’s latest research paints IREN as potentially the next Bitcoin miner to pivot into AI infrastructure, anchored by a multi-billion-dollar deal with Microsoft. The note frames this move as part of a broader, upcoming shift in mining economics as operators redirect energy and capital toward high-margin AI compute rather than traditional crypto mining.

The analysts spotlight IREN’s AI cloud push, noting about 150,000 GPUs already contracted and forecasting an annual revenue run rate of roughly $3.7 billion once the capacity is fully functional. A five-year engagement with Microsoft sits at the core of the plan, with Microsoft committing GPU capacity for AI workloads and providing substantial prepayments that help fund the infrastructure expansion.

Overall, Bernstein estimates IREN’s GPU program amounts to about $5.8 billion in invested capital. The note emphasizes that this sum is largely funded through Microsoft prepayments and GPU-backed financing facilities, supplemented by other cash and capital sources, which helps keep borrowing costs comparatively favorable during the rollout.

Bernstein’s central thesis is that this transition could redefine IREN’s business model. The firm suggests IREN will progressively sunset its Bitcoin mining operations as it retrofits sites to accelerate cloud deployment. Rather than a wholesale shutdown, IREN is repurposing existing mining hardware and facilities—particularly in Texas and British Columbia—replacing ASIC rigs with GPUs designed for AI workloads.

On balance, Bernstein anticipates that IREN’s AI cloud revenue could emerge as the primary source of income in the coming years, with Bitcoin mining shifting into a legacy role as power capacity is redirected toward contracted, higher-margin AI computing workloads. The shift is already underway in practice, with the company pursuing a hardware and location strategy built around AI workloads rather than pure BTC production.

IREN isn’t isolated in this pivot. Several peers in the mining sector, including TeraWulf and HIVE Digital, have begun reallocating power and capital toward AI and high-performance computing, often while maintaining some level of ongoing BTC mining. The trend has sparked discussion about how AI data centers might reshape the economics of crypto mining, and whether the shift could stabilize revenue streams in a landscape of volatile energy prices and crypto cycles.

Key takeaways

• Bernstein identifies IREN as a potential leader in AI infrastructure, anchored by a Microsoft-backed, GPU-heavy expansion.
• Approximately 150,000 GPUs are contracted, with an estimated $3.7 billion in annual revenue run rate once the capacity is fully operational.
• Microsoft’s five-year agreement includes substantial prepayments that fund the build-out, complemented by GPU-backed financing.
• The broader GPU investment—around $5.8 billion—faces capital structure designed to minimize new debt through prepayments and financing facilities.
• Bernstein projects AI cloud revenue as the main income driver for IREN in the medium term, with Bitcoin mining becoming a legacy segment as energy capacity shifts to AI workloads.
• From an investor perspective, Bernstein assigns a $100 price target and maintains an Outperform rating, acknowledging dilution risks and the gradual wind-down of mining as factors.
• The sequence mirrors a wider industry transition, as other miners explore AI data-center strategies in parallel with existing mining operations.

Strategic pivot and financing mechanics

At the heart of the thesis is a deliberate redeployment of IREN’s physical footprint. Rather than shuttering operations, the company is retrofitting sites to host GPU farms that can support AI-centric workloads. The initial focus areas include North American locations such as Texas and British Columbia, where available power capacity and supportive infrastructure could accommodate high-demand AI compute tasks in parallel with ongoing mining activities.

The financial scaffolding reinforces the strategy. Microsoft prepayments and GPU-backed financing facilities are designed to underpin the capex-heavy transition, reducing the immediate need for traditional equity raises or debt funding. Bernstein notes that this arrangement can cushion the transition against capital-cost fluctuations, provided AI demand holds up through the deployment cycle.

Industry context: a broader AI data-center shift

The IREN narrative sits within a broader wave of miners examining AI and HPC as revenue diversification. Firms like TeraWulf and HIVE Digital have publicly signaled similar pivots, emphasizing the opportunity to monetize surplus power by supporting AI workloads in addition to BTC mining. If this trajectory persists, it could alter the economics of crypto mining by introducing longer-term, contracted revenue streams that are less sensitive to spot energy price movements.

Nevertheless, the transition introduces new risks. AI compute contracts typically involve longer commitments and higher upfront capex, which could heighten exposure to technology cycles and utilization risk. Execution quality, regulatory considerations, and the pace of AI adoption will shape whether these reorganizations translate into durable profitability for the companies pursuing them.

Investor outlook: what Bernstein sees for IREN

In its note, Bernstein assigns IREN a price target of $100, implying substantial upside should the company successfully scale its AI cloud platform while winding down mining. The target sits with an Outperform rating, reflecting confidence in the strategic shift but tempered by the dilution concern and the gradual decline of mining revenue. The target marks a revision from a prior $125 price objective, signaling a more cautious stance on near-term dilution and transition risk.

As of the report, IREN trades below the $50 level, presenting what Bernstein characterizes as roughly 10x upside potential if the AI infrastructure strategy materializes as envisioned. The firm emphasizes that the outcome depends on execution, the durability of Microsoft’s utilization, and the sector’s ability to absorb additional AI capacity in a market that remains sensitive to macro and energy-cost dynamics.

Beyond IREN, the trend toward AI data-center deployment across the mining sector is drawing attention from investors and regulators alike. The coming quarters will reveal how quickly these firms can scale GPU-centric operations, how favorable the financing terms remain, and whether AI demand proves resilient through varying market cycles.

As the industry watches, the central questions revolve around utilization risk, the pace of retrofits, and the long-term profitability of AI-first business models for crypto miners. If IREN and its peers can demonstrate stable AI revenue streams alongside disciplined capital management, the shift could redefine what it means to operate a crypto mining enterprise in the current era.

Investors should monitor quarterly updates for site retrofit progress, GPU procurement milestones, and disclosures on Microsoft utilization patterns. The trajectory of the AI cloud run rate and the evolution of the company’s funding framework will be telling signals for how quickly this strategic pivot can translate into sustained financial performance.

As the transition unfolds, the market will be keen to see whether the combination of Microsoft’s support and GPU-backed financing can sustain a robust AI compute business, and how durable these AI-driven margins prove to be in a competitive data-center landscape.

Tether has released an open-source development framework for Bitcoin mining, aimed at giving operators and developers unified control over hardware and software across mining operations.

According to Monday’s announcement, the framework combines a backend SDK and user interface tools to replace fragmented, vendor-specific systems, allowing miners to monitor devices, manage operations and build custom applications across sites from a single control layer.

It uses a modular architecture in which hardware exposes standardized functions and independent modules can be added without altering the core system, enabling integration across different machines, services and locations.

The toolkit supports deployment across Windows, macOS and Linux, and is designed to scale from individual setups to large industrial operations, with features for automation, monitoring and coordinated hardware management, Tether said.

The framework is designed to reduce reliance on proprietary tools and simplify operations across fragmented mining setups, where vendor lock-in and interoperability challenges can increase costs and limit flexibility.

Tether said the release builds on the company’s earlier open-sourcing of its Mining OS, extending its mining software stack with a development layer for building dashboards, workflows and analytics tools on top of existing infrastructure.

The move comes about a week after the company disclosed an 8.2% stake in Antalpha, a Bitcoin-focused lender and equipment financing provider with close ties to mining hardware supplier Bitmain.

Tether is the issuers of USDT (USDT), the largest stablecoin by market capitalization, accounting for about $190 billion of the roughly $320.7 billion global stablecoin market cap, according to DefiLlama data.

Total stablecoin market cap. Source: DefiLlama

Related: Mining companies move deeper into AI, HPC as MARA may sell Bitcoin

Miners continue to push into AI infrastructure

As Tether moves deeper into Bitcoin mining infrastructure, traditionally pure-play mining operators across the industry are increasingly turning to artificial intelligence and high-performance computing workloads to diversify revenue.

One of the earliest companies to pivot was CoreWeave, originally a crypto mining operation that began shifting toward cloud and high-performance computing in 2019 as demand for AI compute increased.

Since then, a growing number of publicly traded miners, including Riot Platforms, HIVE Digital, MARA Holdings, TeraWulf and Cipher Mining, have pursued similar strategies, redirecting power capacity and infrastructure toward AI and high-performance computing.

Top 10 publicly traded Bitcoin miners by market cap. Source: Bitcoinminingstock.io

Last week, Core Scientific said it plans to raise $3.3 billion through senior secured notes due in 2031 to fund data center expansion and refinance short-term debt. 

On Monday, Hut 8 said in a filing that it is seeking to raise $3.25 billion in senior secured notes to fund a 245-megawatt AI data center in Louisiana, tied to a 15-year, $7 billion lease agreement with Fluidstack, according to The Miner Mag.

Some miners are moving further. Also on Monday, analysts from Bernstein said IREN, the largest publicly traded Bitcoin miner by market capitalization, will likely phase out its mining operations over time as it scales its AI cloud business.

Magazine: 6 weirdest devices people have used to mine Bitcoin and crypto

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

Bitcoin (BTC) fell more than 2% on Monday as US-Iran war nerves again guided macro markets.

Key points:

• Bitcoin gave back early-week gains as its downside extended toward 3% on Monday.
• Two key moving averages hang in the balance amid macro uncertainty over the war in Iran.
• Bulls need to clear the low $80,000 area next, says market analysis.

Crypto exec: Bitcoin needs to clear bull market support band

Data from TradingView showed BTC/USD hitting local lows of $76,567 on Bitstamp, giving back earlier gains.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

The pair had managed a weekly candle close above a key moving average — something that market participants had hoped would allow it to avoid a fresh retracement.

“Bitcoin just reclaimed the 21W EMA for the first time since Oct 2025,” trader Ryan Hogue noted in a post on X. 

“$84.5K (200DMA) looks like the next stop this week.”

BTC/USD one-week chart. Source: Ryan Hogue/X

Nic Puckrin, CEO and cofounder of crypto education platform Coin Bureau, added that Bitcoin reclaiming its bull market support band — two moving averages of which the 21-week EMA is one — was now key.

“We are right in the middle of the Bull Market Support Band. This has historically served as a key support for bull markets. We broke below the band in October last year,” he told X followers. 

“While 80k is acting as a resistance right now, if we flip the band to support, it would point to a major macro-bullish shift.”

BTC/USD one-day chart with bull market support band. Source: Nic Puckrin/X

Crypto markets “shaping up for more upside”

Uncertainty over progress between the US and Iran on ending the war nonetheless directed Bitcoin lower at the Wall Street open, along with US stocks.

Related: First 21-week trend line reclaim since October 2025: Five things to know in Bitcoin this week

Oil conversely began to gain, with WTI crude reaching $97.50 per barrel to near two-week highs.

CFDs on US WTI crude oil four-hour chart. Source: Cointelegraph/TradingView

Commenting, trading company QCP Capital suggested that Iran’s foreign minister flying to Russia for talks with President Vladimir Putin was “reviving concerns of broader geopolitical alignment and escalation, and adding to market uncertainty.”

“Whether the next leg higher proves to be another classic bull trap or a more durable recovery will hinge on BTC’s ability to close above 82k,” it wrote in its latest Market Color analysis.

QCP added that corporate earnings represented another source of potential risk-asset volatility for the week ahead.

BTC/USDT six-hour chart. Source: Michaël van de Poppe/X

Elsewhere, crypto trader Michaël van de Poppe was confident about a breakout beyond the current multimonth trading range.

“The markets are still shaping up for more upside, and it’s still holding crucial levels,” he wrote on the day. 

“I think that we’ll see $85-88K in May and correct/consolidate from there.”

This article is produced in accordance with Cointelegraph’s Editorial Policy and is intended for informational purposes only. It does not constitute investment advice or recommendations. All investments and trades carry risk; readers are encouraged to conduct independent research.

KBank, the South Korean digital-only bank that serves as the exclusive banking partner for crypto exchange Upbit, is set to test onchain cross-border remittances with Ripple, the bank said Monday.

The two companies have completed the first phase of a proof-of-concept using a wallet-based remittance system and are now in phase two, testing the stability of onchain transfers to countries including the United Arab Emirates and Thailand.

KBank is using Palisade, Ripple’s software-as-a-service wallet that was acquired earlier this year as part of Ripple’s $4 billion in crypto-related investments.

Most international bank transfers today route through correspondent banking networks like SWIFT, which can take days to settle and charge fees that compound at each intermediary.

Onchain remittances move funds directly across a blockchain network, settling in minutes with the fee paid only to the network rather than the chain of correspondent banks.

The Ripple partnership tests whether KBank can use that approach to improve speed, cost, and transparency for its remittance customers.

KBank also indicated it is preparing for stablecoin-related regulations in Korea, with plans to continue technical verification of remittance use cases for stablecoins as the legal framework develops.

Korean regulations require all crypto exchange users to link a verified bank account before trading, with each major exchange paired exclusively with one bank. KBank holds that monopoly position with Upbit, the country’s largest crypto exchange. The arrangement helped KBank’s user base grow from roughly 2 million in 2020 to 15 million by the end of 2025.

South Korea lawmakers are currently mulling the Digital Asset Basic Act, a comprehensive crypto regulatory framework that is being finalized. Major Korean financial institutions have been signing infrastructure deals with global blockchain companies in the run-up to the law taking effect.

Korea is one of the most active retail crypto markets in the world, with daily trading volumes on local exchanges regularly outpacing those of mainstream stocks during peak periods. Banks operating in this market are positioning to handle the corporate and cross-border activity expected to follow once the Digital Asset Basic Act formalizes how stablecoins, custody, and tokenized assets are treated under Korean law.

Sky, the decentralized finance (DeFi) lending protocol formerly known as MakerDAO, is moving to overhaul how its treasury allocates net revenue now that the founding phase of capital deployment has formally ended.

In a forum post, founder Rune Christensen laid out the rationale for simplifying the Treasury Management Function (TMF), arguing that the recent transfer of Genesis Capital to Grove marks Sky’s permanent exit from the Genesis Capitalization phase. Genesis Capital was the bootstrap funding mechanism Sky used to seed new agents during the expansion of its Sky Agent Network.

The “irregular, governance-determined capital deployments” of the founding period are over, the post said, leaving behind a set of expenses that are rules-bound, predictable, and capped as a fixed percentage of revenue.

The proposal would simplify the TMF from a five-step conditional waterfall into a four-step structure with fixed allocations across Security and Maintenance, Aggregate Backstop Capital, the Smart Burn Engine, and USDS Staking Rewards.

It would also retire several legacy mechanisms, including the Net Revenue Ratio, phase-based distinctions, activity-based staking reward tiers, and Short Term Trading provisions.

The treasury overhaul comes as Sky scales rapidly. USDS supply has climbed to roughly $11.6 billion, making it the third-largest stablecoin, after the Sky community authorized up to $2.5 billion for deployment through stablecoin incubator Obex earlier this year and launched native USDS on Avalanche via the SkyLink bridge in April.

S&P Global Ratings, which last year assigned Sky a “B-“ issuer credit rating, has flagged governance and capital position as the protocol’s key constraints.

Tightening the rules around how revenue is split between security buffers, backstop capital, SKY buybacks, and staking rewards is consistent with the post-Endgame push to make Sky’s expense base more predictable.

This article was written with the assistance of AI workflows. All our stories are curated, edited and fact-checked by a human.

TLDR

• Crypto funds recorded $1.2 billion in inflows, marking four consecutive weeks of positive momentum.
• Bitcoin attracted $933 million in weekly inflows and pushed its year-to-date total to $4.0 billion.
• Total assets under management rose to $155 billion, the highest level since early February.
• Ethereum posted $192 million in inflows, extending its streak to three straight weeks above $190 million.
• Blockchain equity ETFs drew $617 million over the past three weeks as demand increased.

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Crypto investment products recorded $1.2 billion in weekly inflows as Bitcoin price climbed to its highest level since early February. CoinShares reported four consecutive weeks of positive flows, which lifted total assets under management to $155 billion. The firm linked the momentum to improving institutional demand and stronger ETF participation.

Crypto Funds Extend Weekly Gains as Bitcoin Leads

Crypto funds posted their fourth straight week of inflows, bringing in $1.2 billion across digital asset products. CoinShares stated that the rise followed Bitcoin’s price move to its highest point since early February. Total assets under management increased to $155 billion, the highest level since February 1.

However, assets under management remain below the $263 billion peak recorded in October 2025. The report titled “Digital Asset Fund Flows Weekly Report” detailed asset-by-asset performance. It showed steady allocation activity across major cryptocurrencies and related equity products.

Bitcoin attracted $933 million in inflows during the reported week. This pushed its year-to-date total to $4.0 billion, according to CoinShares. The firm said the data reflected sustained ETF demand and ongoing accumulation.

Short-Bitcoin products added $16.5 million during the same period. CoinShares said this amount stayed close to the previous month’s average levels. The firm indicated that hedging activity continued but did not increase.

Ethereum, Altcoins Record Fresh Allocations

Ethereum recorded $192 million in inflows over the past week. This marked its third consecutive week with more than $190 million in allocations. CoinShares reported consistent demand across major Ethereum-linked products.

Solana attracted $31.8 million in fresh capital during the week. XRP followed with $25 million in inflows, according to the report. Chainlink also added $6.8 million during the same timeframe.

Litecoin and Sui posted smaller inflows of $0.5 million and $0.4 million, respectively. The data showed broad participation across multiple digital assets. However, Bitcoin and Ethereum accounted for most of the weekly totals.

Blockchain equity ETFs drew $617 million over the past three weeks. The products reached record weekly levels during this period. The report said investors sought exposure to both technology firms and digital asset markets.

The United States led regional inflows with $1.1 billion. Germany followed with $61.7 million, which more than doubled the previous week’s figure. Switzerland reversed prior outflows and posted $35.2 million in new allocations.

Canada added $15 million, reflecting broader regional participation. Australia and Brazil reported inflows of $0.8 million and $0.5 million, respectively. Meanwhile, Hong Kong, France, the Netherlands, Italy, and Sweden recorded modest outflows.

QCP Capital said geopolitical developments influenced short-term price action. “BTC and ETH initially moved higher, but gains were quickly reversed as new geopolitical concerns emerged,” the firm stated. Bitcoin remains up more than 15% this month as ETF demand continues and traders watch the April 28-29 FOMC decision.

TLDR

• Sam Altman apologized for not alerting police about a banned account linked to the Tumbler Ridge shooting suspect.
• OpenAI banned the suspect’s account in June 2025 for activity related to violent behavior.
• The company decided the content did not meet its threshold for an imminent threat.
• The February attack in British Columbia left eight people dead and 25 injured.
• Altman said he spoke with local and provincial leaders before issuing the public apology.

---

OpenAI CEO Sam Altman apologized to Tumbler Ridge officials for not alerting police about a banned account. The company had removed the account months before a February mass shooting. Altman acknowledged the failure in a public letter released Friday.

Sam Altman Addresses Reporting Failure

Sam Altman sent the letter to leaders in Tumbler Ridge, British Columbia. He admitted the company did not notify authorities after banning the suspect’s account. He wrote, “I am deeply sorry that we did not alert law enforcement.”

He explained that OpenAI banned the account in June 2025. The company cited activity tied to the “furtherance of violent activities.” However, internal reviewers decided the posts did not meet the threshold for imminent harm.

Altman stated that OpenAI considered contacting the Royal Canadian Mounted Police. Yet the company concluded the content lacked a credible and immediate threat. As a result, staff removed the account but did not escalate the case.

He added, “While I know words can never be enough, I believe an apology is necessary.” He recognized the “harm and irreversible loss” suffered by the community. He expressed sympathy for families who lost loved ones.

The February attack unfolded in Tumbler Ridge, British Columbia. Police identified 18-year-old Jesse Van Rootselaar as the suspect. Authorities said she killed her mother and stepbrother before attacking a local school.

At Tumbler Ridge Secondary School, five children and one educator died. Twenty-five others sustained injuries during the shooting. Police confirmed that Van Rootselaar later died by suicide.

Officials Respond to Sam Altman Letter

Altman said he spoke with Mayor Darryl Krakowka and Premier David Eby. He stated they shared the anger and sadness felt across the town. He said they agreed that a public apology was necessary.

He wrote, “No one should ever have to endure a tragedy like this.” He added, “I cannot imagine anything worse in this world than losing a child.” He pledged to work with authorities to prevent similar events.

After the attack, OpenAI disclosed that its systems had flagged the account months earlier. The company said it reviewed the content under its safety policies. It confirmed the account violated usage rules and led to a ban.

The firm stated that it weighed whether to alert police. However, reviewers determined the material did not show imminent danger. Therefore, OpenAI did not contact law enforcement at that time.

Premier David Eby responded publicly on X. He wrote, “The apology is necessary, and yet grossly insufficient.” He added that officials will continue supporting Mayor Krakowka and residents.

The letter emerged as other investigations examine technology platforms and violent incidents. Florida authorities are reviewing whether ChatGPT influenced a 2025 shooting suspect. Separately, a lawsuit claims Google’s Gemini deepened a man’s delusions before his death.

Altman prepares for a civil trial with Elon Musk in federal court this week. The apology letter marks his latest public statement. He reaffirmed his commitment to work with government leaders on safety measures.

CoinDesk Indices presents its daily market update, highlighting the performance of leaders and laggards in the CoinDesk 20 Index.

The CoinDesk 20 is currently trading at 2106.81, down 0.8% (-17.25) since 4 p.m. ET on Friday.

Three of 20 assets are trading higher.

Leaders: AAVE (+1.0%) and CRO (+0.8%).

Laggards: XLM (-3.4%) and NEAR (-2.9%).

The CoinDesk 20 is a broad-based index traded on multiple platforms in several regions globally.

Canada’s proposed ban on crypto political donations moved a step closer to becoming law on Friday, advancing through Parliament with cross-party support and little opposition.

Bill C-25, the Strong and Free Elections Act, passed second reading in the House of Commons and was referred to committee for further review. In Canada’s system, that vote signals lawmakers broadly agree with a bill’s core principles before it faces detailed scrutiny and possible amendments.

The legislation would prohibit political contributions made in crypto, alongside money orders and prepaid payment products, grouping them as funding methods that are difficult to trace.

The ban would apply across the federal system — registered parties, electoral district associations, candidates, leadership and nomination contestants, and third parties that run election advertising.

Recipients would have 30 days to return illegal crypto contributions or remit them to the Receiver General, Canada’s equivalent of the U.S. Treasury.

The bill’s lead defender on the floor was Kevin Lamoureux, the Liberal parliamentary secretary to the government’s House leader, a junior official who helps manage the ruling party’s legislative agenda and acts as a floor spokesperson during debate.

His opening speech walked through AI deepfakes, foreign interference, and administrative penalties. Crypto did not come up, according to an official transcript. Asked by a Liberal colleague to pick from three priorities — foreign interference in nominations, political financing transparency or artificial intelligence — Lamoureux picked AI.

Several Conservative Members of Parliament — the party is led by Pierre Poilievre, who marketed himself as crypto-friendly during the last election — raised questions about political financing rules and how new restrictions would be applied.

But the issue never became a central point of contention.

Conservatives backed sending the bill to committee, while other opposition parties raised concerns about different elements of the legislation, but did not center their arguments on crypto.

The limited resistance also reflects how little crypto has been used in Canadian politics.

Canada has technically allowed crypto donations since 2019, when Elections Canada classified them as non-cash, in-kind contributions similar to property. But no major federal party has publicly accepted crypto, and no contributions have been disclosed in recent elections.

C-25 is itself a re-run. Its predecessor, Bill C-65, contained identical crypto language and died when Parliament was prorogued — suspended without dissolving — in January 2025.

Canada’s Chief Electoral Officer recommended tighter regulation of crypto donations in 2022, then, in November 2024, shifted to recommending an outright prohibition, citing pseudo-anonymity and the difficulty of verifying contributors’ identities.

The U.S. is moving in the opposite direction. The Federal Election Commission has permitted crypto donations to American campaigns since 2014.

Earlier this year, the U.K. passed a law banning crypto donations, citing concerns that digital assets could be used to hide the origins of foreign money in British politics.