The cryptocurrency landscape is rapidly evolving, and while Bitcoin often steals the spotlight, there are compelling investment opportunities within the equities tied to the crypto ecosystem. Investors are observing a noticeable surge, not only in Bitcoin but also in key crypto stocks that have consistently outperformed the cryptocurrency itself. This article will focus on two such stocks: Iris Energy (IREN) and Coinbase (COIN), illustrating why they could be the preferred options for exposure to the crypto boom.
Main Keyword: Crypto Stocks
1. IREN: A Miner Evolving into an AI Powerhouse
Iris Energy (IREN) has been on a transformative path, transitioning from a traditional cryptocurrency mining company to a powerhouse in artificial intelligence (AI) data centers. IREN has strategically positioned itself to take advantage of the increasing demand for data centers, especially as tech giants like Google and Meta invest heavily in AI.
Data Center Capacity and Future Growth
With 810 megawatts of existing data center capacity, alongside nearly 3 gigawatts of contracted, grid-connected power, IREN stands well-positioned for future growth. This massive power capacity can translate into significant revenue; past deals suggest billions of dollars could flow into IREN from its AI-related contracts. The company reported a substantial multi-gigawatt development pipeline, hinting that expansion activities are well underway.
During its Q4 FY25 report in August, IREN stated that it expects annual recurring cloud revenue to hit between $200 million and $250 million by year-end. However, in a striking follow-up, it projected this revenue could soar to over $500 million by Q1 2026. This suggests a robust demand for IREN’s services, especially in light of the booming AI sector.
The Crypto Connection
Even as IREN diversifies into AI, cryptocurrency mining remains a critical part of its revenue model. In August alone, the company mined 668 Bitcoin, yielding hardware profits of approximately $50.8 million and a remarkable 66% profit margin. As the energy crisis for AI data centers becomes more pronounced, companies may turn to IREN for its abilities to meet their energy needs. This dual-focus could make IREN a standout option for investors looking for growth in both the crypto and tech sectors.
2. Coinbase: The Gateway to Digital Assets
Coinbase (COIN) is synonymous with cryptocurrency trading and remains one of the most significant players in the market. It has become the largest U.S.-based crypto exchange and currently holds around $1.8 billion in crypto assets as of June 30, 2025.
Comprehensive Services Offered
Coinbase is more than just a trading platform; it allows for staking, crypto-based purchases, and offers secure digital wallets. The company’s global transfer capabilities allow users to send crypto to friends seamlessly and without fees, making it a user-friendly choice for both new and experienced investors.
Moreover, while transaction revenues saw a slight dip year-over-year, the surge in stablecoin revenue—up 38.3%—is noteworthy. The recently enacted GENIUS Act has created a regulatory framework fostering the adoption of stablecoins and other digital assets, promising significant gains for Coinbase.
Institutional Confidence
Coinbase is also the custodian for over 80% of U.S. Bitcoin and Ethereum ETFs, solidifying its reputation as a trusted platform for institutional investors. As Bitcoin approaches its all-time high, rising demand for cryptocurrencies is likely to boost Coinbase’s transaction revenues, presenting a compelling case for potential investors.
Additionally, shares of Circle (CRCL), of which Coinbase owns 8.5 million, have also soared by over 70% year-to-date, contributing positively to Coinbase’s profitability.
The Big Picture: Why You Should Invest in IREN and Coinbase
Performance Metrics
Both IREN and Coinbase have demonstrated better year-to-date performance compared to Bitcoin itself. As these stocks capitalize on their diversified business models, they are more than just crypto stocks—they are companies at the forefront of technological shifts.
Vertical Integration: IREN’s shift into AI means it is benefiting from both the mining of cryptocurrency and the burgeoning demand for cloud computing services, a trend that is unlikely to slow down anytime soon.
Regulatory Advantage: Coinbase’s early mover advantage puts it in a strong position to benefit from the increased regulation surrounding cryptocurrencies, ensuring growth potential in a more stable market environment.
- Alternative Investment: Investing in stocks like IREN and Coinbase offers a way to gain exposure to the crypto market without the volatility often associated with buying cryptocurrencies directly. These companies provide a more stable avenue for growth while still allowing investors to reap the benefits from cryptocurrency dynamics.
Conclusion
The cryptocurrency boom is not solely about Bitcoin; diversified investment in crypto stocks like Iris Energy and Coinbase could offer significant gains as they broaden their revenue streams and tap into emerging technologies. IREN’s transition towards AI data centers and Coinbase’s established market presence make them compelling contenders for growth in this ever-evolving landscape.
As Bitcoin approaches its all-time highs, and with the potential for increased crypto adoption, these two stocks stand poised for substantial growth for patient investors willing to bet on the fusion of cryptocurrencies and technological advancement.
