IREN (NASDAQ:IREN) and Cipher Mining (NASDAQ:CIFR) are former crypto miners that have pivoted to AI infrastructure. These companies create AI data centers and own the energy that big tech craves. Both companies have signed lucrative, multi-year deals that come to billions of dollars, but IREN has a few distinct advantages over Cipher Mining that make it the better stock. These are some key details investors should know.
IREN Has More Available Power Right Now
IREN and Cipher Mining both have vast gigawatt pipelines, 4.5 gigawatts and 3.4 gigawatts, respectively. However, part of a gigawatt’s value is how close it is to energization. If a gigawatt is energized right now, a tech company can sign a deal and start using it right away instead of having to wait a few years.
That’s one of the biggest value propositions IREN has over Cipher Mining. IREN has 810 megawatts of operating data centers compared to Cipher Mining’s 477 megawatts. Not all of those megawatts are for AI, as some of that energy is for crypto mining. For instance, IREN only has 460 megawatts energized for AI, while Cipher Mining has a lower number. IREN is also projected to energize its 1.4 gigawatt Sweetwater 1 facility in April, giving it a better moat over Cipher Mining. The entire Sweetwater 1 facility is intended for AI use.
Both companies will continue to energize more of their data centers. While IREN can realistically close the year with two gigawatts of energized power that is specifically for AI, it will take longer for Cipher Mining to achieve that goal. The big year for Cipher Mining is 2028, when the company is expected to energize 2.5 gigawatts. That means IREN will have a big lead in energized gigawatts for a while.
IREN Got Better Contract Terms Than Cipher Mining
IREN and Cipher Mining both announced major deals in recent quarters. While IREN didn’t announce a new deal in Q2 FY26, its 5-year deal with Microsoft (NASDAQ:MSFT | MSFT Price Prediction) was still a big catalyst in Q1 FY26. That deal’s total value is $9.7 billion, which comes to $1.94 billion per year. IREN also secured a 20% prepayment, which will help with financing additional AI data centers. It covers 200 megawatts.
Meanwhile, Cipher Mining reached a 15-year agreement with Amazon (NASDAQ:AMZN) for $5.5 billion. The deal includes 300 megawatts and comes to $367 million per year. That difference is because IREN buys, owns, and maintains Nvidia (NASDAQ:NVDA) GPUs while Cipher Mining acts more like a landlord that lets tech companies bring their own chips.
Those GPUs can appreciate over time if demand remains high. While depreciation is normal in the tech industry, Nvidia chips seem to be the exception since every big tech company wants them. IREN’s approach requires more capital but sets it up for higher annual recurring revenue, which can translate into more attractive margins once the GPUs are in place.
IREN’s Oklahoma Site Extended Its Gigawatt Pipeline Lead
IREN and Cipher Mining both have exceptional multi-gigawatt pipelines, but IREN has a big lead after announcing its 1.6 gigawatt Oklahoma site. IREN now has 4.5 gigawatts compared to Cipher Mining’s 3.4 gigawatts. IREN seems to focus on large sites that can support at least one gigawatt, while Cipher Mining likes to spread things out across smaller sites like the 200 megawatt site it acquired in Ohio.
A 1.6 gigawatt site requires more capital than a bunch of smaller sites, but it’s more convenient in the long run to have gigawatts concentrated in one area instead of many smaller sites. IREN’s 1.6 gigawatt Oklahoma site is easier to maintain and more cost-effective than eight 200 megawatt sites. It’s similar to real estate investing, in which a 10-unit apartment complex is easier to maintain than 10 single-family homes scattered across the country.
IREN has given itself a notable advantage by focusing on large-scale sites. Both companies are committed to building their gigawatt pipelines and are poised to capitalize on the AI boom, but IREN looks like the better choice.
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