Tech Firm Faces Scrutiny as AI Pivot Lags, Bitcoin Dependence persists
September 29, 2025 – A technology company attempting a transition into the artificial intelligence market is drawing criticism from wall Street analysts who question its viability as a stable investment, citing overwhelming reliance on Bitcoin mining and substantial costs associated with infrastructure conversion.
The firm, currently generating 95.3% of its revenue from Bitcoin-related activities as of the third quarter of 2025, sees onyl 2.4% of sales stemming from AI initiatives. This limited exposure,analysts argue,disqualifies the company from being categorized as an AI-related stock.
While the company proposes repurposing existing Bitcoin mining facilities for AI applications, the process is expected to be lengthy and expensive.”Iren’s AI cloud service is only 0.5% of the total data center capacity,” noted one Wall Street official. ”The purchase of GPUs for the construction of infrastructure for AI is also in its infancy, so there is a limit to dramatically increasing AI sales.”
The shift requires significant investment in GPU-based clouds and high-performance computing facilities, possibly impacting profit margins. Unlike established IT companies experiencing sales growth with higher margins, this firm may face margin compression due to the capital expenditure.
A recent dip in Bitcoin prices – a 1-2% decline between August 27 and September 26 – further exacerbates concerns. While a minor fluctuation for coin investors, it represents a risk factor for a company heavily reliant on Bitcoin holdings. Revenue is generated through Bitcoin sales or the recognition of its holding value,and price declines directly impact profitability,particularly given substantial fixed costs like power and equipment depreciation.
Adding to investor concerns is the company’s lack of dividend payments, hindering potential shareholder returns and offsetting stock volatility. Long-term investors typically seek dividends as a buffer against individual stock fluctuations, a benefit currently unavailable from this firm due to ongoing AI investment requirements.
