IREN vs. MARA: Which Bitcoin-Focused Stock Has an Edge?
November 27, 2025
IREN Limited IREN and MARA Holdings MARA are two of the biggest bitcoin mining companies. Bitcoin, the most popular cryptocurrency, peaked in value at the beginning of October 2025 and since then it has been nosediving.
The question remains: amid the price volatility, which bitcoin mining stock has more upside potential? Let us break down their fundamentals, growth prospects, market challenges, future strategy and valuation to determine which offers a more compelling investment case.
IREN has proved itself to be one of the world’s largest and lowest-cost bitcoin miners. In its recent quarterly results, IREN reported a 17% sequential rise in average operating Hash rate as it focuses on capacity expansion in the Childress data center. This improved operating Hash rate enabled IREN to increase bitcoin mining in the first quarter of fiscal 2026 by 12% on a sequential basis.
However, the swinging price of cryptocurrencies is one of the reasons why IREN is now diversifying its business by entering into the AI Cloud Service Market. IREN has been planning to capitalize on this emerging AI space as the need for AI compute infrastructure is witnessing a CAGR of 19.4%, per a report by MarketsAndMarkets, much faster than the crypto mining market. To support its AI endeavors, IREN is investing in new facilities.
In its British Columbia facility, IREN has set a target of late 2026 to convert its 160MW infrastructure from ASIC miners to GPU-based AI compute. At Childress, IREN is working on Microsoft’s 200MW liquid-cooled data center with 100MW high-performance AI training clusters and flexible rack densities up to 200kW. IREN’s 2GW Sweetwater Hub is advancing, with the 1,400MW Sweetwater 1 substation expected to be energized by April 2026 and the 600MW Sweetwater 2 substation targeted for late 2027.
Nevertheless, IREN’s capacity expansion comes with higher capital expenditure. IREN is spending $5.8 billion on GPUs to stay relevant in the current market. However, it is fulfilling its capital needs with $1.9 billion in customer prepayments, $2.5 billion through credit and contract with Microsoft and $1.4 billion dollars with cash, equity, convertible notes and corporate credit. We can infer that IREN has a small fraction of capital at its disposal to fund expansion, while heavily relying on external contracts and customer prepayment.
IREN’s business is not exactly well diversified yet. AI data center revenues contributed only $7.3 billion to total revenues of $240.3 billion, forming approximately 3% of the top line in the first quarter of fiscal 2026. This leaves IREN’s business exposed to crypto volatility. Furthermore, since crypto mining is an innovation-driven, heavy-capex industry, IREN faces high depreciation expenses and frequent impairment of assets. These factors have caused IREN’s bottom line to shrink. The Zacks Consensus Estimate for IREN’s second and third-quarter fiscal 2026 earnings has been revised downward in the past 30 days.
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MARA is also expecting to capitalize on the global transition toward AI institutionalization and the broad acceptance of bitcoin’s strategic store of value. As MARA continues with its commitment to scaling operations and enhancing efficiencies, the eventual decrease of compute with the transition from GPUs to ASICs will enable it to gain load flexibility in bitcoin mining and the lowest cost per token in AI.
MARA’s record-low cost structure, including its recent purchase of $39.2K energy cost per bitcoin and $0.04/kWh power, enhances profitability even in volatile markets. MARA is also investing heavily in its computing facilities. In 2024, MARA acquired seven sites across the United States. MARA also acquired the Hopedale and Hannibal facilities for just $270,000 per MW, significantly below the industry average of $900,000 to $1.5 million per MW. The Zacks Consensus Estimate for MARA’s 2025 and 2026 earnings has narrowed in the past 30 days.
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MARA is developing a greenfield facility in Ohio, which is expected to add 150 MW of capacity. These strategic expansions support MARA’s growth and reduce reliance on third-party providers. By owning and operating more than 50% of its 1.7 GW compute capacity, the company aims to minimize operational risks and lower costs. This vertical integration aligns with MARA’s objective to lead the digital asset industry while maintaining flexibility in energy sourcing and operational strategy.
MARA retains a significant portion of the Bitcoin it mines, positioning itself to capitalize on potential price appreciation over time, selling the rest for immediate revenues. This hybrid strategy, combining revenue generation with strategic asset accumulation, balances immediate income from Bitcoin production with long-term growth potential tied to its holdings. MARA had cash and bitcoin holdings of approximately $6.8B at the end of third-quarter 2025.
Year to date, IREN shares have gained 393.4% compared with the 33.7% fall in MARA shares.
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On the valuation front, IREN trades at a forward 12-month P/S multiple of 8.89X, significantly higher than MARA’s 3.83X.
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IREN and MARA both view AI computing as the next major frontier, but they approach this transition from different operational positions. While IREN rapidly moves toward AI with strong partnerships, MARA is focusing on a vertically integrated, energy-anchored model with structurally lower costs and disciplined site acquisitions.
MARA’s lower valuation makes it a stock worth considering, while IREN needs more caution due to shrinking margins. MARA carries a Zacks Rank #3 (Hold) while IREN carries a Zacks Rank #5 (Strong Sell) at present.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
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