Core Viewpoint - IREN Limited announced the need to amend and restate its consolidated financial statements for the fiscal years ended June 30, 2024, 2023, and 2022, due to a reclassification of Bitcoin mining proceeds from operating to investing activities in accordance with IAS 7.16(b) [1] Financial Restatement - The restatement affects the classification of cash flows from Bitcoin mining, which were previously classified as operating activities [2] - The restatements do not impact the Company's consolidated statements of profit or loss, financial position, changes in equity, or cash equivalents for the periods being restated [3] - IREN plans to classify Bitcoin mining proceeds as operating activities under U.S. GAAP once it transitions to U.S. domestic filer status in 2025 [4] Regulatory Filings - Detailed summaries of the restatements are available in the Company's Form 20-F/A for the year ended June 30, 2024, and Form 6-K/A for Q1 and Q2 FY25 interim results [5]

SYDNEY, AUSTRALIA, March 20, 2025 (GLOBE NEWSWIRE) - IREN Limited (NASDAQ: IREN) (together with its subsidiaries, "IREN" or the "Company"), today announced that, in connection with the Securities and Exchange Commission's ("SEC") review of its Form 20-F for the fiscal year ended June 30, 2024 (the "SEC Review"), and following review and consultation with management and upon the recommendation of the Audit and Risk Committee, the Board of Directors of the Company concluded that its previously issued consolid ...

Core Insights - IREN Limited has signed a 600MW grid connection agreement for its Sweetwater 2 data center hub, which is part of a larger 2GW project in West Texas, enhancing its competitive position in scalable data center infrastructure [1] - The company emphasizes that its 2.75GW capacity in West Texas is fully contracted, reducing development risk and ensuring deliverable capacity [2] - IREN is focusing on aligning its infrastructure with the demands of global AI and cloud computing firms, with plans for fiber interconnections and data center colocation agreements [3] Company Overview - IREN operates one of the world's largest renewable energy markets, providing scalable and low-cost electricity [5] - The company has secured 600MW of power under a binding grid connection agreement, ensuring real, contracted capacity [5] - IREN's strategic location includes over 500 acres near existing facilities, with a direct fiber loop being designed to connect Sweetwater 1 and 2 [5] Future Developments - The energization of Sweetwater 1 is scheduled for April 2026, while Sweetwater 2 is expected to be energized in 2027 [3] - IREN's development portfolio includes 2,910MW of grid-connected power across North America and a multi-gigawatt development pipeline [12] - The company is expanding its data center capacity from 510MW to 910MW by 2025, specifically designed for high-performance computing applications [10]

Core Viewpoint - IREN Ltd's stock is experiencing an upward movement following an upgrade from J.P. Morgan Securities, which believes the stock has been excessively punished this year, presenting a favorable entry point for investors, despite a reduction in the price target from $15 to $12 [1]. Group 1: Stock Performance - IREN shares were observed to be 0.9% higher at $7.10 ahead of the market opening, indicating a potential recovery [2]. - The stock has faced significant pressure in 2024, with a year-to-date loss of 28.3%, and is trading near its lowest levels since early September [2]. Group 2: Market Sentiment - The crypto mining sector is under pressure due to bitcoin volatility and regulatory concerns, negatively impacting investor sentiment [2]. - Short interest in IREN has increased by 8.1% over the last two reporting periods, with 22.25 million shares sold short, representing 11.1% of the stock's available float [3]. Group 3: Options Trading - Options traders are currently leaning bearish, as indicated by IREN's Schaeffer's put/call open interest ratio, which is in the 80th percentile of annual readings [3]. - A potential unwinding of this bearish sentiment could act as a bullish catalyst for the stock [3].

Core Insights - IREN Limited reported a decline in Bitcoin mined and revenue for February 2025, attributed to fewer days in the month, but maintains a resilient hardware profit margin of 70% [3][4][8] - The company is ramping up its Bitcoin mining capacity to 50 EH/s over the next four months, projecting substantial annualized operating cash flows of approximately $600 million at current market conditions [4][6] - IREN's AI Cloud Services revenue increased by 39% in February, nearing full utilization, driven by strong demand for advanced hardware [5][8] Financial Performance - Average operating hashrate decreased to 28.7 EH/s in February from 29.0 EH/s in January [3] - Bitcoin mined fell to 459 BTC in February from 521 BTC in January [3] - Revenue per Bitcoin decreased to $95,570 in February from $99,789 in January, while electricity costs per Bitcoin increased to $28,341 from $24,683 [3] - Total revenue for February was $43.9 million, down from $52.0 million in January [3] Operational Updates - The company is actively working on the 1.4GW Sweetwater 1 project, on track for energization in April 2026, and finalizing a 600MW connection agreement for Sweetwater 2 [4][9] - Customer interest in the AI Data Center 'Horizon 1' is strong, with demand exceeding initial capacity [4][6] - Site works have commenced for the 75MW Liquid-Cooled Childress Data Center, designed for high-density rack usage [10] Market Outlook - Management expects that despite market volatility, the expansion in Bitcoin mining capacity will lead to significant cash flows [4][6] - The company is exploring alternative capital sources for AI colocation opportunities, indicating a flexible financing strategy [6][8] - The overall market for AI and high-performance computing (HPC) solutions is showing increased demand, which the company aims to capitalize on [6][8]

Core Viewpoint - IREN Limited is showing a significantly improving earnings outlook, making it a potentially solid investment choice as analysts continue to raise their earnings estimates for the company [1][2]. Estimate Revisions - The upward trend in earnings estimate revisions indicates growing analyst optimism regarding IREN Limited's earnings prospects, which is expected to positively influence its stock price [2]. - For the current quarter, IREN Limited is projected to earn $0.21 per share, reflecting a 162.5% increase from the previous year's reported figure, with a 24% increase in the Zacks Consensus Estimate over the last 30 days [4]. - For the full year, the earnings estimate has risen to $0.28 per share, representing a 196.55% increase from the prior year, with the consensus estimate increasing by 182.86% due to positive revisions [5]. Zacks Rank - IREN Limited currently holds a Zacks Rank 2 (Buy), indicating favorable conditions for investment based on promising estimate revisions, which historically lead to significant outperformance compared to the S&P 500 [6]. - Stocks with a Zacks Rank 1 (Strong Buy) and 2 (Buy) have shown a strong track record of outperforming the market, with Zacks 1 Ranked stocks averaging a 25% annual return since 2008 [3][6]. Market Performance - The stock has gained 8.5% over the past four weeks, driven by solid estimate revisions, suggesting that its earnings growth prospects may lead to further price increases [7].

Core Viewpoint - IREN Limited (IREN) shows significant upside potential with a mean price target of $20.55, indicating a 58% increase from the current price of $13.01 [1] Price Targets - The average of 11 short-term price targets ranges from a low of $15 to a high of $26, with a standard deviation of $4.08, suggesting variability in analyst estimates [2] - The lowest estimate indicates a 15.3% increase, while the highest suggests a 99.9% upside [2] - A low standard deviation indicates a high degree of agreement among analysts regarding price movement direction [7] Analyst Sentiment - Analysts have shown increasing optimism about IREN's earnings prospects, with a strong consensus in revising EPS estimates higher [9] - Over the last 30 days, two estimates have increased, leading to a Zacks Consensus Estimate rise of 182.9% [10] - IREN holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [11] Caution on Price Targets - Solely relying on price targets for investment decisions may not be wise, as empirical research indicates they often mislead investors [5][8] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [6]

Company Overview - IREN Limited is part of the Oils-Energy group, which consists of 247 companies and is currently ranked 7 in the Zacks Sector Rank [2] - The Zacks Rank system identifies stocks with characteristics likely to outperform the market in the next one to three months, with IREN Limited holding a Zacks Rank of 2 (Buy) [3] Performance Metrics - IREN's full-year earnings estimate has increased by 28.6% in the past quarter, indicating improved analyst sentiment and earnings outlook [4] - Year-to-date, IREN has gained approximately 32.5%, significantly outperforming the average gain of 4.1% in the Oils-Energy group [4] Industry Context - IREN Limited is categorized under the Alternative Energy - Other industry, which includes 47 companies and is currently ranked 85 in the Zacks Industry Rank [6] - The Alternative Energy - Other industry has seen an average gain of 14.9% this year, with IREN performing better than this group [6] - In contrast, NextDecade, another stock in the Oils-Energy sector, belongs to the Oil and Gas - Production Pipeline - MLB industry, which is ranked 18 and has gained 3.1% this year [6] Future Outlook - Investors interested in Oils-Energy stocks should monitor IREN Limited and NextDecade for potential continued strong performance [7]

Q2 FY25 Financial Highlights - Revenues reached $119.6 million[11] - EBITDA was $62.7 million[11] - Net Profit After Tax (NPAT) amounted to $18.9 million[11] - Adjusted EBITDA Margin was 52% compared to 5% in Q1 FY25[53] Operational Growth - Mining capacity increased by approximately 50%, from 21 EH/s to 31 EH/s[11] - Average Operating Hashrate was 22.6 EH/s[11] - Expansion to 50 EH/s is on track for H1 2025, adjusting prior mining expansion plan from 57 EH/s to 52 EH/s due to Horizon 1[11, 39] Strategic Initiatives - Developing a new 600MW Sweetwater 2 site to create a 2GW Sweetwater Data Center Hub[11, 22] - Horizon 1, a new 75MW liquid-cooled data center at Childress for AI/HPC, is under development with a target completion in H2 2025[11, 16] - The company secured 2,310MW of grid-connected power[11, 40] Financial Position - Cash and cash equivalents stood at $427.3 million as of December 31, 2024[55, 61] - Total assets amounted to $1,852 million[61] - A $440 million Convertible Note was issued on December 6, 2024, with a 3.25% annual interest rate[61]

Financial Data and Key Metrics Changes - The company reported a record net profit after tax (NPAT) of $18.9 million for Q2 FY '25, reflecting significant growth driven by low-cost Bitcoin production and operational efficiencies [6][54]. - Adjusted EBITDA increased by $60 million to $62.6 million, with the average operating hashrate rising from 12.2 exahash to 22.6 exahash [55]. - Bitcoin mining revenue reached $113.5 million, with operating cash flows of $53.7 million [54]. Business Line Data and Key Metrics Changes - The company is expanding its Bitcoin mining capacity from 31 exahash to a target of 50 exahash by mid-2025, with a revised target of 52 exahash due to the allocation of resources to the Horizon 1 project [7][17]. - The average net electricity cost per Bitcoin mined decreased from $35.4k to $21.4k, attributed to a transition to a spot pricing strategy [56]. Market Data and Key Metrics Changes - The company noted a significant power shortage in the U.S. data center market, with a 36 gigawatt shortfall, creating opportunities for IREN to leverage its secured grid-connected power [41][42]. - The demand for liquid-cooled data center capacity is increasing, particularly with the upcoming release of NVIDIA's Blackwell GPUs [10][23]. Company Strategy and Development Direction - IREN is focusing on expanding its AI data center capabilities with the Horizon 1 project, a 75-megawatt liquid-cooled facility, to capitalize on the growing market for AI and data center services [10][50]. - The development of Sweetwater 2, a new 600-megawatt site, aims to create a 2-gigawatt data center hub, enhancing the company's strategic position in West Texas [12][28]. - The company is prioritizing multi-tenant colocation at Childress while preserving Sweetwater for single-site opportunities, indicating a strategic approach to maximize asset utilization [51][52]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing increased interest from hyperscalers in large-scale data center campuses and the company's unique position to meet this demand [72][74]. - The management team acknowledged the risks associated with project developments but emphasized the materiality of the Sweetwater 2 project in the context of market dynamics [29][104]. Other Important Information - The company confirmed its transition to U.S. GAAP reporting starting in H2 2025, which will impact the accounting for its convertible notes and other financial instruments [60]. - IREN's balance sheet remains strong, with total assets increasing to approximately $1.9 billion, supporting future growth initiatives [59]. Q&A Session Summary Question: Update on Horizon 1 and CapEx - Management highlighted that existing data center architecture will help deliver liquid-cooled capacity at effective costs, with long lead items already ordered [63][66]. Question: Demand for Sweetwater 2 - Management noted that the demand for large data center campuses is realistic, with many hyperscalers interested in 1 gigawatt plus capacities [72][74]. Question: Challenges in Grid Connection - Management discussed the difficulties in securing grid connections, noting that the process has become more complex due to increased applications and limited utility resources [81][84]. Question: Construction Costs and Tariffs - Management indicated that while construction costs may rise due to tariffs, a diversified supply base mitigates risks [88][90]. Question: ROI Considerations for Horizon 1 - Management stated that the decision to build Horizon 1 was strategic, capitalizing on the growing demand for liquid-cooled data centers [97][99]. Question: Financing Options for Projects - Management confirmed that they are exploring multiple financing avenues, including project-level financing once customer contracts are secured [139].