IREN Ltd (NASDAQ: IREN) saw its stock price surge 5.14% in after-hours trading on Wednesday, following the release of its third-quarter fiscal year 2025 financial results and strategic updates. The company, which operates in both Bitcoin mining and AI cloud services, reported robust growth and a shift in focus towards artificial intelligence opportunities.

IREN announced record quarterly revenues of $148.1 million, representing a significant increase from the previous quarter's $119.6 million. The company's Bitcoin mining revenue grew by 24% to $141.2 million, while its AI cloud services revenue jumped 33% to $3.6 million. Notably, IREN achieved a record Adjusted EBITDA of $83.3 million, up from $62.6 million in the previous quarter, with an improved Adjusted EBITDA margin of 56%.

In a strategic move, IREN revealed it would pause its Bitcoin mining expansion at 50 EH/s to concentrate on scaling its AI infrastructure initiatives. The company highlighted progress on its Horizon 1 AI Data Center, a 50MW liquid-cooled facility on track for delivery in the second half of 2025. Additionally, IREN reported growing demand for its AI cloud services, with annualized run-rate revenue now at $28 million. These developments, coupled with the strong financial performance, appear to have boosted investor confidence in IREN's future prospects, driving the after-hours stock price increase.