Financial Data and Key Metrics Changes - The company reported a net profit of $24 million for Q3 FY 2025, reflecting a 28% growth quarter on quarter [5][18] - Revenue reached a record $148 million for the quarter, up 24% from approximately $120 million in Q2 [5][18] - Adjusted EBITDA increased from $62 million to $83 million, marking a 32% rise [18][71] - The average operating hash rate grew to 29.4 exahash, a 30% increase from the previous quarter [14][71] Business Line Data and Key Metrics Changes - The Bitcoin mining segment averaged 29.4 exahash of operating capacity, representing a nearly 5x uplift year on year [6][14] - The AI cloud segment saw a 33% quarter on quarter revenue growth, with hardware profit margins of 97% [35] - The company is on track to reach 50 exahash of installed capacity by June 30, 2025, a 4x increase from 10 exahash in June 2024 [7][20] Market Data and Key Metrics Changes - The company noted a 326% year on year hash rate growth against a 40% increase in network difficulty, indicating market share gains [14] - The global AI data center demand is projected to grow three and a half times in the next five years, necessitating new infrastructure [40] Company Strategy and Development Direction - The company is focusing on value-accretive investments in both Bitcoin mining and AI infrastructure, pausing further mining expansion to allocate capital towards AI [7][25] - Significant build-outs are underway for AI data centers, including a 50 megawatt liquid cooled data center and a 2 gigawatt flagship hub in West Texas [9][62] - The company aims to transition to U.S. domestic issuer status to align reporting with U.S. GAAP and reflect its increased U.S. asset footprint [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued earnings momentum into fiscal Q4, driven by key growth initiatives [6] - The company is practicing disciplined capital allocation amid broader market volatility, emphasizing the importance of cash flow from Bitcoin mining to fund AI growth [11][25] - Management highlighted the competitive advantage in securing large-scale sites and power capacity to meet rising AI infrastructure demand [44][62] Other Important Information - The company is transitioning to U.S. GAAP reporting from July 1, 2025, which will impact the accounting for convertible notes and other financial instruments [74] - The company has $160 million in cash on the balance sheet, supporting its growth plans [67] Q&A Session Summary Question: How should we think about your appetite to fill out the available capacity of Prince George and growth beyond that? - The company is focused on capital and risk-adjusted returns, looking to match debt with customer contracts for growth in AI cloud services [79] Question: At what stage could it make sense to bring a partner in for joint ventures? - The company may need to bring in partners for project financing and debt, especially for large-scale developments like Sweetwater [81] Question: How is the AI cloud business performing in terms of uptime and utilization? - The company tracks a full range of metrics and receives positive feedback from customers, indicating strong performance compared to industry norms [90] Question: What milestones are you looking for to indicate progress towards formal agreements at Horizon One? - The company is in advanced negotiations with several customers and expects to finalize contracts ahead of commissioning in Q4 [94]

Q3 FY25 Financial Highlights - Record revenue of $148.1 million[18] - Record Adjusted EBITDA of $83.3 million[18] - Record EBITDA of $82.7 million[18] - Profit After Tax of $24.2 million[18] Bitcoin Mining Operations - Average Operating Hashrate of 29.4 EH/s[18] - Target installed capacity of 50 EH/s by June 30, 2025[18] - Pausing further mining expansion at 50 EH/s to focus on AI opportunities[18] - Best-in-class fleet efficiency at 15 J/TH[24] - Low electricity costs at 3.3 c/kWh at Childress power price[24] - Illustrative Adjusted EBITDA of $588 million at 50 EH/s (assuming $95k Bitcoin price)[29] - 326% YoY hashrate growth[26] AI Cloud Services - Launched IREN Cloud in August 2023 and scaled to 1,896 H100 & H200 GPUs[38] - AI Cloud revenues scaling with strong margins and 33% QoQ revenue growth[45] - 97% Hardware profit margin for AI cloud service[46] - Annual run-rate revenue of $28 million[49] AI Data Center Expansion - Horizon 1: Up to 50MW (IT load) liquid-cooled capacity targeting Q4 2025 delivery with $6-7 million forecast capex per MW of IT Load[18, 75] - Sweetwater 1: 1.4GW April 2026 energization[18] - Sweetwater: 2GW of high-voltage power across >1,800 acres[83] Financial Position - $160 million cash as of April 30, 2025[89] - Up to $250 million expected net funding requirement during 2025[89]

Financial Performance - Company reported record revenues of $148.1 million for Q3 FY25, a 24% increase in Bitcoin mining revenue to $141.2 million and a 33% increase in AI Cloud services revenue to $3.6 million compared to Q2 FY25 [5] - Adjusted EBITDA reached a record $83.3 million, with an adjusted EBITDA margin of 56%, up from 52% in the previous quarter [5][12] - Profit after income tax was $24.2 million, representing a 28% growth compared to $18.9 million in Q2 FY25 [5][17] Operational Highlights - Company mined 1,514 Bitcoin in Q3 FY25, an increase from 1,347 Bitcoin in Q2 FY25, supported by a 30% increase in average operating hashrate to 29.4 EH/s [5] - Installed capacity increased to 40 EH/s as of April 16, 2025, with a target of reaching 50 EH/s by June 30, 2025 [5][10] - Company is now one of the largest and lowest-cost producers of Bitcoin, with an all-in hash cost of $23 compared to an average hash price of $54 [5] Strategic Focus - Company is pausing further mining expansion to concentrate on scaling AI infrastructure initiatives, particularly the Horizon 1 and Sweetwater projects [2][10] - Horizon 1 is a 50MW liquid-cooled AI data center, while Sweetwater is a 2GW flagship AI and compute hub, both aimed at meeting the growing demand for AI data centers [10][28] - Company is advancing multiple debt financing initiatives to support continued investment as market conditions stabilize [2][10] Market Positioning - Company is positioned to benefit from the increasing demand for AI cloud services, with a run-rate revenue of $28 million annually from supplying compute to leading US AI cloud providers [10] - The company has secured 2,910MW of grid-connected power across North America, emphasizing its commitment to utilizing 100% renewable energy [28]

Core Viewpoint - IREN Limited is expected to report its third-quarter fiscal 2025 results on May 14, with a consensus estimate of 17 cents per share, a decrease from the previous estimate, and projected revenues of $155.69 million, indicating a significant year-over-year improvement of 186.45% [1][2]. Group 1: Financial Performance Expectations - The fiscal third-quarter performance is anticipated to benefit from increased bitcoin revenues, with reported monthly revenues of $52 million, $43.9 million, and $45.3 million for January, February, and March respectively [3]. - However, the revenue per Bitcoin mined has shown a decline, with March's revenue at $85,012, down from $95,570 in February and $99,789 in January, which may pressure both topline and margins for the upcoming quarter [4]. Group 2: Additional Revenue Streams - AI Cloud services revenues have shown a gradual increase, with $0.8 million in January, $1.2 million in February, and $1.6 million in March [5]. Group 3: Earnings Expectations and Model Insights - According to the Zacks model, IREN Limited currently has an Earnings ESP of -40.00% and a Zacks Rank of 4 (Sell), indicating a lower likelihood of an earnings beat compared to other companies [6].

Core Insights - IREN Limited reported significant growth in Bitcoin mining operations, with an increase in average operating hashrate and Bitcoin mined in April 2025 compared to previous months [4][5][11] - The company is on track to expand its mining capacity to 50 EH/s by June 30, 2025, supported by hardware shipments from Southeast Asia [5][8] - AI Cloud Services revenue is also growing, indicating diversification in revenue streams [6][11] Bitcoin Mining Performance - Average operating hashrate increased to 36.6 EH/s in April from 30.3 EH/s in March and 28.7 EH/s in February [4] - Bitcoin mined rose to 579 BTC in April, up from 533 BTC in March and 459 BTC in February [4] - Revenue per Bitcoin increased to $86,522 in April from $85,012 in March, while electricity costs per Bitcoin rose to $24,381 from $20,460 [4] - Total revenue for Bitcoin mining reached $50.1 million in April, a 27% increase month-on-month [4][11] - Hardware profit margin for Bitcoin mining was 72% in April, down from 76% in March [4] AI Cloud Services - Revenue from AI Cloud Services grew to $2.0 million in April, up from $1.6 million in March [6] - Hardware profit margin for AI Cloud Services remained high at 98% in April [6] Future Outlook and Projects - The company is progressing on its Horizon 1 AI Data Center project, scheduled for delivery in H2 2025 [5][9] - IREN anticipates generating an illustrative adjusted EBITDA of $588 million at 50 EH/s based on current mining economics [11] - The Childress project is expected to energize in April 2026, with ongoing construction and site works [14][15]

Core Viewpoint - IREN Limited will release its financial results for the three and nine months ended March 31, 2025, on May 14, 2025, and will host a conference call for investors [1][2]. Company Overview - IREN is a leading data center business focused on Bitcoin and AI, utilizing 100% renewable energy [3]. - The company has been operational in Bitcoin mining since 2019, expanding its capacity to 52 EH/s in 2025 [4]. - IREN provides AI cloud services with 1,896 NVIDIA H100 & H200 GPUs, having started operations in 2024 [4]. - The company operates 660MW of data centers, with plans to expand to 910MW in 2025, designed for high-performance computing [4]. - IREN has secured a development portfolio of 2,910MW of grid-connected power across North America and holds over 2,000 acres of property for future development [4]. - The company targets sites with low-cost renewable energy and supports local electrical grids and communities [4].

Company Overview - IREN Limited is focused on Bitcoin mining and AI cloud services, utilizing 100% renewable energy [8] - The company has been operational since 2019 for Bitcoin mining and since 2024 for AI cloud services [10] Bitcoin Mining Expansion - IREN has successfully increased its self-mining capacity from 37 EH/s to 40 EH/s, achieving an efficiency of 15 J/TH [2] - The company is on track to reach its target of 50 EH/s by the first half of 2025 [1][3] - The expansion is supported by the commissioning of additional mining hardware at its Childress Phase 4 data centers, which have a capacity of 150 MW [2] Operational Efficiency - IREN is positioned as one of the largest and lowest-cost Bitcoin producers due to its efficient data center operations and low electricity costs [2] - The company aims to maintain its momentum in scaling mining capacity towards the 50 EH/s target [2] Future Development - IREN has a development portfolio that includes 2,910 MW of grid-connected power secured across North America and a multi-gigawatt development pipeline [10] - The company is expanding its data center capacity from 660 MW to 910 MW in 2025, specifically designed for high-performance computing applications [10]

Core Insights - IREN Limited reported a significant increase in Bitcoin mining performance and revenue in March 2025, with a focus on scaling AI Cloud Services and AI Data Center businesses [1][7][11] Bitcoin Mining Performance - The average operating hashrate increased to 30.3 EH/s in March from 28.7 EH/s in February, with Bitcoin mined rising to 533 BTC from 459 BTC [4] - Revenue per Bitcoin decreased to $85,012 in March from $95,570 in February, while electricity costs per Bitcoin dropped to $20,460 from $28,341 [4] - Total revenue for March was $45.3 million, up from $43.9 million in February, with hardware profit reaching $34.4 million, an increase from $30.9 million [4][11] Capacity and Expansion Plans - Operating data center capacity increased to 660 MW, with Bitcoin mining capacity now at 37 EH/s, up from 31 EH/s, and on track for 50 EH/s in H1 2025 [5][11] - A new 600 MW grid connection agreement was signed, bringing total secured power capacity in West Texas to 2.75 GW [5][8] AI Cloud Services - Revenue from AI Cloud Services grew to $1.6 million in March from $1.2 million in February, with a hardware profit margin of 97% [6] - The company is prioritizing customer prepayments and various debt financing solutions to support AI opportunities [8][11] Management Commentary - Management emphasized the strategic pause in Bitcoin mining expansion to focus on scaling AI Cloud Services and AI Data Center businesses [7][11] - The company is closely monitoring tariff changes and their potential impact on supply chains [8] Financial Metrics - The hardware profit margin for Bitcoin mining was reported at 76% in March, up from 70% in February [4][6] - Annualized run-rate revenue for AI Cloud Services is now $26 million, reflecting strong customer onboarding [11]

[Business Update and Strategic Outlook](index=1&type=section&id=Business%20Update%20and%20Strategic%20Outlook) This section covers IREN's strategic shift from Bitcoin mining expansion to AI/HPC, outlining capital reallocation and financing priorities [Executive Summary](index=1&type=section&id=Executive%20Summary) IREN announced a strategic shift, pausing Bitcoin mining expansion at 52 EH/s to reallocate capital and focus on AI/HPC segments. The company is progressing debt financing workstreams and leveraging existing Bitcoin mining cashflows for AI growth - Bitcoin Mining expansion paused at **52 EH/s**[1](index=1&type=chunk)[4](index=4&type=chunk) - Strategic focus shifting to **AI/HPC segments** (AI Cloud Services and AI Data Centers)[2](index=2&type=chunk)[3](index=3&type=chunk)[5](index=5&type=chunk) - Capital strategy prioritizes customer prepayments and debt financing, with **ATM facility** providing a strategic backstop[4](index=4&type=chunk) [Strategic Shift: Bitcoin Mining Expansion Pause](index=1&type=section&id=Strategic%20Shift%3A%20Bitcoin%20Mining%20Expansion%20Pause) IREN will halt further Bitcoin mining expansion after reaching 52 EH/s, redirecting capital and management focus towards AI data centers and cloud infrastructure, while utilizing strong cashflows from existing mining operations - All further Bitcoin Mining expansion will pause upon completion of its **52 EH/s** buildout[4](index=4&type=chunk) - Capital and management focus reallocated toward **AI data centers and cloud infrastructure**[5](index=5&type=chunk) - Existing **Bitcoin mining business cashflows** will be leveraged to support growth of AI Cloud Services and AI Data Center businesses[5](index=5&type=chunk) [Core Business Overview](index=1&type=section&id=Core%20Business%20Overview) This section details IREN's Bitcoin mining capacity, AI Cloud Services operations, and AI Data Center development, including financial metrics and expansion plans [Bitcoin Mining](index=1&type=section&id=Bitcoin%20Mining) IREN's Bitcoin mining capacity increased to 35 EH/s and is on track to reach 50 EH/s soon, with a target of 52 EH/s. The company expects significant annualized net cashflow from this segment and plans to reinvest these cashflows into its AI businesses Bitcoin Mining Capacity Expansion | Metric | Current (as of report) | Target | | :----- | :--------------------- | :----- | | Installed Capacity | 35 EH/s (from 31 EH/s) | 50 EH/s (in coming months), 52 EH/s (final buildout) | Expected Annualized Illustrative Net Cashflow | Metric | Amount | | :----- | :----- | | Annualized Illustrative Net Cashflow | $528 million | - Intends to reinvest **mining cashflows** to support growth of its AI Cloud Services and AI Data Center businesses[8](index=8&type=chunk) [AI Cloud Services](index=1&type=section&id=AI%20Cloud%20Services) IREN operates 1,896 NVIDIA H100 and H200 GPUs, generating an annualized run-rate revenue of $26 million. The company is seeing increased engagement for large-scale AI cloud infrastructure, particularly for Blackwell B200 GPU clusters, and is pursuing GPU financing to support expansion AI Cloud Services Key Metrics (as of March 31, 2025) | Metric | Value | | :----- | :---- | | GPUs Operating | 1,896 (NVIDIA H100 and H200 hardware) | | Annualized Run-Rate Revenue (utilized GPUs) | $26 million | - Seeing increased engagement around large-scale **AI cloud infrastructure** opportunities, particularly for multi-thousand air-cooled **Blackwell B200 GPU clusters**[8](index=8&type=chunk) - Progressing **GPU financing workstreams** to support potential expansion, optimize capital efficiency, and deliver attractive risk-adjusted returns[8](index=8&type=chunk) [AI Data Centers](index=2&type=section&id=AI%20Data%20Centers) IREN is developing AI Data Centers, with Horizon 1 targeting 50MW IT load, expected to be funded by customer prepayments and debt. Discussions have expanded beyond 50MW, and the company has started placing long-lead equipment deposits. The Sweetwater Data Center Hub has 2GW power capacity, with early-stage infrastructure investment to secure time-to-power advantage Horizon 1 AI Data Center Project | Metric | Details | | :----- | :------ | | IT Load Target | 50MW (initial discussions, now evolving to larger volumes) | | Estimated Capex | $300-$350 million | | Funding Sources | Primarily colocation customer prepayments and debt financing | - Commenced placing **long-lead equipment deposits** for capacity beyond the initial **50MW** to preserve execution speed and maintain time-to-market advantage[11](index=11&type=chunk) - Sweetwater Data Center Hub has **2GW power capacity**, with investment in substations and early-stage infrastructure to preserve time-to-power advantage[11](index=11&type=chunk) [Financing Strategy](index=1&type=section&id=Financing%20Strategy) This section outlines IREN's capital allocation priorities, emphasizing customer prepayments and diverse debt financing solutions, supported by its ATM facility and institutional appetite for credit [Capital Allocation Priorities](index=1&type=section&id=Capital%20Allocation%20Priorities) IREN's capital strategy prioritizes customer prepayments and various debt financing solutions. The existing ATM facility provides a strategic backstop, having raised $111 million to date at an average share price of $11.07 - Capital strategy prioritizes **customer prepayments** and a range of **debt financing solutions**[4](index=4&type=chunk) ATM Facility Utilization (as of March 28, 2025) | Metric | Value | | :----- | :---- | | Gross Proceeds Raised | $111 million | | Average Share Price | $11.07 | | Ordinary Shares Outstanding | 224,458,888 | - The existing **ATM facility** provides a strategic capital backstop to complement other financing sources[11](index=11&type=chunk) [Debt Financing Workstreams](index=2&type=section&id=Debt%20Financing%20Workstreams) IREN is focused on optimizing its capital structure, utilizing customer prepayments, project-level and corporate debt, convertible notes, asset-backed financing, and reinvestment of cashflows from Bitcoin Mining and AI Cloud Services. The company believes there is strong institutional appetite for credit and infrastructure lending, supported by its assets and track record - Financing sources include **customer prepayments**, **project-level and corporate debt instruments**, **convertible notes**, **asset-backed financing and leasing**, and reinvestment of **Bitcoin Mining and AI Cloud Service cashflows**[11](index=11&type=chunk) - IREN believes there is strong institutional appetite for **credit and infrastructure lending**, even ahead of contracted revenue, supported by its substantial real asset base, proven execution track record, and robust cashflows[11](index=11&type=chunk) [Company Information](index=10&type=section&id=Company%20Information) This section provides an overview of IREN's business, its renewable energy focus, operational history in Bitcoin mining and AI, and key contact details [About IREN](index=10&type=section&id=About%20IREN) IREN is a leading data center business utilizing 100% renewable energy to power Bitcoin, AI, and other high-performance computing. The company has been operating Bitcoin mining since 2019, AI Cloud Services since 2024, and manages 660MW of operating data centers, expanding to 910MW in 2025 - IREN is a leading data center business powering the future of **Bitcoin, AI and beyond** utilizing **100% renewable energy**[21](index=21&type=chunk) IREN Business Operations Overview | Business Vertical | Operations Since | Key Metric | | :---------------- | :--------------- | :--------- | | Bitcoin Mining | 2019 | Expanding to 52 EH/s in 2025 | | AI Cloud Services | 2024 | 1,896 NVIDIA H100 & H200 GPUs | | Next-Generation Data Centers | N/A | 660MW operating, expanding to 910MW in 2025 | - Development portfolio includes **2,910MW of grid-connected power** secured across North America, a **>2,000 acre property portfolio**, and a **multi-gigawatt development pipeline**[23](index=23&type=chunk) [Contacts](index=10&type=section&id=Contacts) Provides contact information for media inquiries (Jon Snowball, Gillian Roberts) and investor relations (Lincoln Tan) - Media contacts: **Jon Snowball** (Sodali & Co, +61 477 946 068, +61 423 136 761) and **Gillian Roberts** (Aircover Communications, +1 818 395 2948, gillian.roberts@aircoverpr.com)[22](index=22&type=chunk) - Investor contact: **Lincoln Tan** (IREN, +61 407 423 395, lincoln.tanairen.com)[22](index=22&type=chunk) [Important Disclosures](index=4&type=section&id=Important%20Disclosures) This section presents critical assumptions for financial figures and a comprehensive disclaimer regarding forward-looking statements, outlining inherent risks and uncertainties [Assumptions and Notes](index=4&type=section&id=Assumptions%20and%20Notes) This section provides important disclaimers and assumptions for the illustrative net cashflow calculations and other financial figures presented in the report. It clarifies that illustrative net cashflow is not a projection and is based on specific assumptions that may differ in the future - Illustrative Net Cashflow is based on assumptions (e.g., **100% uptime**, **815 EH/s global hashrate**, **$0.035/kWh electricity**, **$85k Bitcoin price**) and should not be considered projections[13](index=13&type=chunk) - AI Cloud Services annualized run-rate revenue is for **utilized GPUs** as of **March 31, 2025**[13](index=13&type=chunk) - ATM facility figures (**$111 million gross proceeds**, **$11.07 average share price**, **224,458,888 ordinary shares outstanding**) are as of **March 28, 2025**[13](index=13&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) This section contains a comprehensive disclaimer regarding forward-looking statements, highlighting that such statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from expectations. It lists numerous potential risks, including Bitcoin price fluctuations, capital access, execution of growth strategies, regulatory environment, and operational challenges - Forward-looking statements are subject to **risks, uncertainties, and other factors** which could cause actual results to differ materially from those expressed or implied[15](index=15&type=chunk) - Key risks include **Bitcoin price and foreign currency exchange rate fluctuations**, ability to obtain additional capital, successful execution of growth strategies (including HPC solutions), and operating in an evolving regulatory environment[16](index=16&type=chunk) - IREN disclaims any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, except as required by law[19](index=19&type=chunk)

Group 1: Market Overview - The recent stock market comeback and subsequent selloff illustrate the difficulties of market timing, making it nearly impossible to accurately predict market tops or bottoms [1] - The Nasdaq has experienced a remarkable 95% increase since early 2020, encompassing both the rapid COVID bear market and the extended bear market of 2022 [1] - The recent rally emphasizes the importance of maintaining consistent exposure to the stock market, regardless of potential future drawdowns [1] Group 2: IREN Limited (IREN) - IREN Limited's stock is currently priced at $7 per share, trading 185% below its average Zacks price target, and offers exposure to Bitcoin mining, AI data center expansion, and renewable energy growth [3][10] - The company operates data centers powered entirely by renewable energy, with Bitcoin mining currently driving most of its sales, while significant growth potential exists in AI data centers and high-performance computing [4][5] - IREN reported a 150% revenue growth in FY24, with Q2 FY25 sales increasing by 125%, largely due to a 129% surge in Bitcoin mining [8] - The company is projected to transition from an adjusted loss of -$0.29 per share last year to a profit of +$0.38 in FY25, with anticipated sales growth of 200% in FY25 and 85% in FY26, reaching $1.04 billion in FY26 [9][10] - IREN has a robust balance sheet, with $456 million in cash and equivalents, $1.85 billion in total assets, and $566 million in total liabilities, leading to a strong buy recommendation from 11 of 12 tracked brokerages [10] Group 3: Opera Limited (OPRA) - Opera Limited focuses on AI-driven content discovery and privacy tools, positioning itself to capture a growing share of the online ecosystem as traditional search engines decline [15] - The company reported 296 million average monthly active users in 2024, with total FY24 revenue increasing by 21% to $480.7 million [19] - Opera's FY25 consensus earnings estimate increased by 32%, with projected revenue growth of 18% in 2025 and 16% in 2026, leading to adjusted earnings growth of 39% and 29%, respectively [20] - Despite a 37% decline from summer 2023 peaks, OPRA stock has matched the Tech sector's performance over the past year and significantly outperformed it over the last five years [21] - The stock trades at a 44% discount to the Tech sector, with a forward P/E ratio of 14.1X and offers a dividend yield of approximately 4.4% [23]