IREN will transform from bitcoin miner to leader in AI infrastructure

🔹 Key Highlights

📈 Financial Performance (Q3 FY25)

• Record Revenue: $148.1 million
• Record Adjusted EBITDA: $83.3 million
• Record EBITDA: $82.7 million
• Profit After Tax: $24.2 million
• Avg. Operating Hashrate: 29.4 EH/s
• Strong Margins: All-in cash cost per BTC mined at $41k vs. revenue per BTC of $93k

🔹 Bitcoin Mining

• Installed Capacity: 40 EH/s as of April 16, 2025; targeting 50 EH/s by June 30
• Hashrate Growth: 326% YoY vs. 40% increase in network difficulty
• Efficiency: 15 J/TH fleet efficiency; 3.3 c/kWh electricity cost at Childress
• Expansion Pause: Mining expansion paused at 50 EH/s to focus on AI opportunities
• Illustrative Adj. EBITDA at 50 EH/s: $588 million with 62% margin

🔹 AI Cloud Services

• IREN Cloud: Launched in Aug 2023; scaled from 248 to 1,896 NVIDIA H100 & H200 GPUs
• Revenue Run-Rate: $28 million annually
• Hardware Profit Margin: 97%
• Clients: Supplying white-labeled compute to leading US AI cloud providers
• Expansion Potential: 47MW of additional air-cooled capacity at Prince George (supports >20,000 B200 GPUs)

🔹 AI Data Centers

• Horizon 1: 50MW liquid-cooled data center at Childress, targeting Q4 2025 delivery
  • Designed for NVIDIA Blackwell GPUs
  • Capex: $6–7 million per MW
  • Customer negotiations underway
• Sweetwater: 2GW flagship AI & compute hub in Texas
  • Supports >700,000 liquid-cooled GPUs
  • Energization from April 2026
  • Potential to support $70 billion in AI data center investment

🔹 Capital & Funding

• Cash & Equivalents: $184.3 million as of March 31, 2025
• Convertible Notes: $440 million issued in Dec 2024
• ATM Share Sales: $107.6 million raised post-Q3
• Funding Needs: Up to $250 million expected in 2025 for:
  • 50 EH/s expansion
  • Horizon 1 completion
  • Sweetwater development

🔹 Strategic Outlook

• Transitioning to US GAAP: From July 1, 2025
• Focus Shift: From Bitcoin mining to AI infrastructure
• AI Infrastructure Demand: Expected 3.5x increase in global data center demand by 2030
• Positioning: IREN aims to lead in scalable, liquid-cooled AI data center infrastructure🔮 Future Projections for IREN

  🟦 Bitcoin Mining

  • Installed Hashrate Target: 50 EH/s by June 30, 2025 (currently at 40 EH/s)
  • Mining Expansion Paused: Cap set at 50 EH/s to redirect capital toward AI infrastructure
  • Illustrative Adj. EBITDA at 50 EH/s: $588 million with a 62% margin (assuming $95k BTC price)

  🟦 AI Cloud Services

  • Annualized Revenue Run-Rate: $28 million (as of May 2025)
  • GPU Fleet: 1,896 NVIDIA H100 & H200 GPUs deployed in <12 months
  • Expansion Potential:
    • 47MW of additional air-cooled capacity at Prince George (supports >20,000 B200 GPUs)
    • Demand growing post-DeepSeek release
  • White-labeled Compute: Supplying to major US AI cloud providers

  🟦 AI Data Centers

  🔸 Horizon 1 (Childress, TX)

  • 50MW Liquid-Cooled Facility: Targeting Q4 2025 delivery
  • Designed for: NVIDIA Blackwell GPUs (200kW rack density)
  • Financing Options: Customer prepayments, project/corporate debt, leasing, convertible notes

  🔸 Horizon Expansion

  • Full Site Design: Underway for 750MW liquid-cooled transformation of Childress
  • Customer Interest: Exceeds Horizon 1 capacity

  🔸 Sweetwater Project (TX)

  • 2GW AI & Compute Hub: Energization from April 2026
  • Supports: >700,000 liquid-cooled GPUs
  • Potential Investment: Up to $70 billion in AI data center infrastructure
  • Strategic Goal: Position Sweetwater as a flagship AI infrastructure site

  🟦 Financial Outlook

  • Cash & Equivalents: $184.3 million (as of March 31, 2025)
  • Expected Funding Needs: Up to $250 million in 2025 for:
    • Completing 50 EH/s expansion
    • Horizon 1 buildout
    • Sweetwater development
  • Transition to US GAAP: Effective July 1, 2025
• 💰 IREN’s Expansion Financing Strategy

  1. Internal Cash Flows

  • Bitcoin Mining & AI Cloud Services:
    • Strong operational cash generation from both verticals.
    • Daily Bitcoin liquidation provides liquidity.
    • AI Cloud Services contribute an annualized run-rate revenue of $28 million with 97% hardware profit margin.

  2. Cash Reserves

  • Cash & Equivalents:
    • $184.3 million as of March 31, 2025.
    • $160 million (unaudited) as of April 30, 2025, including proceeds from ATM share sales.

  3. Equity Financing

  • ATM Share Issuance:
    • Raised $107.6 million post-Q3 FY25.
    • $781.5 million remaining capacity under the ATM program.
    • Total shares outstanding: 241.9 million as of May 12, 2025.

  4. Debt Financing

  • Convertible Notes:
    • Issued $440 million in 2030 Convertible Senior Notes (3.25% interest rate).
    • Includes embedded derivatives and capped call structures for financial flexibility.
  • Future Debt Plans:
    • Advisors engaged across multiple debt financing workstreams.
    • Exploring project-level and corporate debt, asset-backed financing, leasing, and convertible notes.
    • Targeting execution in the coming months as markets stabilize.

  5. Customer Prepayments & Joint Ventures

  • Especially relevant for AI data center projects like Horizon 1 and Sweetwater.
  • Open to strategic joint ventures if aligned with long-term goals.

  6. Expected Funding Needs

  • Up to $250 million net funding required in 2025 for:
    • Expansion to 50 EH/s Bitcoin mining capacity.
    • Completion of Horizon 1 (50MW liquid-cooled AI data center).
    • Development of Sweetwater (2GW AI & compute hub).