IREN Limited

What they do

IREN owns and operates data centers powered by 100% renewable energy, offering GPU-based AI Cloud Services (launched 2024) and Bitcoin mining using ASICs. The company is vertically integrated, owning its hardware, electrical infrastructure, and freehold land. As of March 31, 2026, it had approximately 150,000 GPUs installed or on order and ~38 EH/s of hashrate capacity.

Revenue drivers

• AI Cloud Services — Provides cloud-based GPU computing for AI training and inference, with revenue from customer contracts; new contracts signed in 2026 total $2.8bn, with customers including Microsoft, NVIDIA, and Perplexity.
• Bitcoin Mining — Earns Bitcoin from block rewards and transaction fees, typically liquidated daily; historically a primary revenue source, with $501.0M total revenue in fiscal 2025.
• HPC and AI Services (beyond AI Cloud) — Expanding into other high-performance computing and AI services by repurposing Bitcoin mining data centers; still early-stage, no revenue detail provided.

Recent performance

For the nine months ended March 31, 2026, revenue was $569.8M, flat compared to the prior-year period, and net loss was $18.6M (vs. $89.7M loss). In the March 2026 quarter, revenue was $144.8M, net loss $247.8M, and Adjusted EBITDA $59.5M. Fiscal 2025 (ended June 30, 2025) net income was $86.9M on revenue of $501.0M. As of March 31, 2026, cash and equivalents were $2,213.3M.

Strategy

IREN is expanding AI Cloud capacity, raising its year-end 2026 ARR target to over $4bn, with 480MW of AI Cloud capacity planned for 2026 and 1.2GW targeted for 2027. The company is signing multi-year contracts with AI developers, including prepayments covering ~45% of GPU capex for recent deals. It is also diversifying via acquisitions: a merger agreement to buy Mirantis (a cloud software provider) for ~$625M in shares, and an agreement to acquire Spanish data center developer Ingenostrum for ~EUR 165M (65% cash, 35% shares). Bitcoin mining remains a secondary focus, with data centers being repurposed for HPC/AI.

Risks

• History of losses and profitability uncertainty — IREN incurred net losses in fiscal 2023 and 2024, and a net loss of $247.8M in the March 2026 quarter; future profitability is not assured as it continues heavy investment.
• Debt and equipment lease obligations — The company has significant equipment leases guaranteed by IREN Limited; if cash flows from leased equipment (e.g., HPC/AI services) are insufficient, lessors could repossess equipment or seek payment from IREN.
• Dependence on key customers and prepayments — Revenue targets rely on contracted customers, and prepayments represent ~45% of GPU capex under recent contracts; if customers default or contracts are terminated, funding and revenue could be impacted.
• Legal and regulatory exposure — IREN has been involved in legal proceedings related to defaulted equipment financing facilities, including bankruptcy proceedings; although a settlement was reached in August 2025, similar disputes could arise in the future.

Outlook

Management raised the year-end 2026 ARR target to over $4bn, with ~85% under contract following $2.8bn in new contracts. They plan to deliver 480MW of AI Cloud capacity in 2026 and target 1.2GW for 2027, with demand exceeding available capacity across 2026-2027 expansion. Contracted pricing is strengthening, and the company expects to continue scaling its AI Cloud platform while maintaining Bitcoin mining operations.