Financial Data and Key Metrics Changes - Total revenue for Q2 FY 2026 was $184.7 million, a decrease of 23% compared to the previous quarter, primarily due to lower Bitcoin mining revenue [19] - Adjusted EBITDA declined mainly due to reduced Bitcoin mining revenue, partially offset by lower payroll tax accruals and power costs [20] - The company recorded $31.8 million in mining hardware impairment associated with the transition to AI cloud, compared to $16 million in the prior period [20] Business Line Data and Key Metrics Changes - AI cloud revenue is accelerating as deployments ramp up, with a significant portion of revenue now coming from AI workloads [19] - The company expects to deliver 140,000 GPUs by the end of 2026, positioning for an annualized run rate revenue of $3.4 billion [5][17] - Approximately $2.3 billion of annualized revenue run rate is under contract, including around $0.4 billion at the Prince George site [16] Market Data and Key Metrics Changes - The company has secured underwriting commitments for $3.6 billion of GPU financing at an interest rate of less than 6%, covering 95% of GPU-related CapEx [4][22] - Demand for AI cloud services remains strong, with multiple advanced negotiations underway for larger scale deployments [5][16] - The company has secured over 4.5 GW of power, with a new 1.6 GW site in Oklahoma, enhancing its competitive position in a power-constrained market [6][14] Company Strategy and Development Direction - The company focuses on a vertically integrated model, controlling its own data centers and operations to manage costs and service quality [11] - The strategy revolves around the "three Cs": capacity, customers, and capital, which reinforce each other to support growth [8][26] - The company aims to scale into one of the world's largest AI cloud platforms, leveraging its secured power and customer demand [10][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing transition to AI cloud, expecting subsequent quarters to reflect a growing contribution from AI cloud revenues [21] - The company highlighted that demand is not a limiting factor for reaching its $3.4 billion ARR target by the end of 2026, with significant runway for growth beyond that [17][27] - Management emphasized the importance of selecting the right long-term partnerships to create lasting value [17] Other Important Information - The company has a strong cash position of $2.8 billion and has secured $9.2 billion from various financing sources to support growth [23][24] - The company is actively monitoring the colocation market but sees AI cloud as a more valuable opportunity at present [32][36] Q&A Session Summary Question: Update on ERCOT and its impact on Sweetwater - Management indicated that Sweetwater is likely to be included in the batching process, securing the full 2 GW of power [30] Question: Economics on colocation versus AI cloud - Management noted that AI cloud offers higher value compared to colocation, with better dollar-per-megawatt returns [32][35] Question: Energization dates for Sweetwater - Sweetwater 1 is on track to energize in Q2, with customer engagement expected to improve due to the batching process [51][52] Question: ARR recognition timeline - Revenue from the Microsoft contract is expected to commence progressively over the year, starting in Q2 [54] Question: Pricing environment for cloud deals - Management reported strong ongoing demand and a willingness from customers for longer contract tenors, indicating a favorable pricing environment [59]

Earnings Presentation Q2 FY2026 February 5, 2026 DISCLAIMER Forward-Looking Statements This investor update includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended ("Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended ("Exchange Act"), that involve substantial risks and uncertainties. Forward-looking statements include information concerning possible or assumed future results of operations, including descriptions of our ...

Core Insights - The recent selloff in bitcoin has significantly impacted prominent bitcoin miners, with IREN and CleanSpark experiencing substantial declines in their stock prices [2] Company Performance - IREN reported a total revenue of $184.7 million, a decrease from the previous quarter's $384.6 million profit, resulting in a net loss of $155.4 million, which was below the estimated revenue of $224 million [3] - CleanSpark's quarterly revenues reached $181.2 million, reflecting an 11.6% increase year-over-year, but fell short of consensus estimates by approximately $13 million. The company reported a net loss of $378.7 million compared to a net income of $246.8 million in the same period last year [6] Strategic Transition - IREN is transitioning from Bitcoin mining to AI Cloud, with an increasing allocation of capacity to higher-value AI workloads, leading to accelerated AI Cloud revenues [4] - CleanSpark is diversifying its business model, focusing on building an infrastructure platform with multiple revenue streams, including Bitcoin mining for cash flow and AI infrastructure for long-term asset monetization [8] Financial Challenges - IREN faced unrealized losses exceeding $219 million related to prepaid forwards and capped calls, along with a one-time debt conversion expense and mining hardware impairments of $31.8 million due to the ASIC-to-GPU transition [4]

Core Viewpoint - IREN Limited reported disappointing second-quarter earnings, missing analyst expectations on both revenue and losses, leading to a decline in stock price [1][2]. Financial Performance - IREN reported a quarterly loss of $0.52 per share, which was significantly higher than the consensus estimate of a loss of $0.14 per share [2]. - Quarterly sales amounted to $184.69 million, falling short of the analyst consensus estimate of $228.13 million [2]. Management Commentary - Co-CEO Daniel Roberts highlighted that the last quarter showed meaningful progress in capacity expansion, customer engagement, and capital formation, indicating IREN's development as a scaled AI Cloud platform [2]. - Roberts emphasized the strong demand environment and the company's proven execution capability in delivering data center capacity reliably and on time, which resonates with customers [3]. Stock Performance - Following the earnings report, IREN's stock price fell by 7.01%, closing at $37.01 in extended trading [3].

Core Insights - The article highlights a shift in the narrative of mining companies from solely focusing on cryptocurrency to embracing high-performance computing and AI infrastructure, as evidenced by the performance of the Amplify Blockchain Technology ETF (BLOK) [1] Group 1: Company Performances - IREN Limited (IREN) experienced a 42.28% surge in January following a multi-billion-dollar agreement to provide cloud capacity for AI workloads, indicating its data centers' value for both machine learning and blockchain security [1] - Figure Technology Solutions (FIGR) rose by 39.28% in January, reflecting increased institutional adoption of its Provenance Blockchain for home equity lending and private market transactions [1] - Applied Digital (APLD) gained 38.17% as it transitioned from a digital asset miner to an AI infrastructure provider, capitalizing on the demand for high-density power data centers amid the generative AI boom [1] - Bakkt (BKKT) advanced 33.37% due to a rise in digital asset trading activity, benefiting from its role in providing institutional-grade custody and trading services [1] - WisdomTree (WT) saw a 32.90% increase, driven by growing investor interest in tokenization and real-world assets, positioning itself as a bridge between traditional finance and blockchain technology [1] Group 2: Market Trends - The performance of BLOK in January was driven by high-growth infrastructure and platform companies that have evolved beyond single-use crypto models into more versatile blockchain or AI-enabled businesses [1] - The fund's focus on smaller, agile infrastructure and platform plays allows it to capture capital flows in the rapidly evolving sectors of blockchain, AI, and next-generation financial infrastructure [1] - This shift in narrative emphasizes the potential of energy as a programmable asset, moving the focus away from crypto cyclicality towards the value of next-generation digital infrastructure [1]

Financial Performance - As of December 31, 2025, the company reported total revenue of $184.7 million for Q4 2025, a 59% increase from $116.1 million in Q4 2024[182] - The company generated a net loss of $(155.4) million in Q4 2025 compared to a net loss of $(21.9) million in Q4 2024[182] - The company reported an Adjusted EBITDA of $75.3 million for Q4 2025, up from $62.4 million in Q4 2024[183] - For the three months ended December 31, 2025, the net income (loss) was $(155,407) thousand, compared to $(21,888) thousand for the same period in 2024[229] - EBITDA for the six months ended December 31, 2025, was $418,818 thousand, while for the same period in 2024, it was $(1,428) thousand[229] - Adjusted EBITDA for the three months ended December 31, 2025, was $75,310 thousand, compared to $62,381 thousand for the same period in 2024, reflecting a 20.5% increase[229] - The Adjusted EBITDA margin for the six months ended December 31, 2025, was 39%, compared to 38% for the same period in 2024[229] - The company reported a significant impairment of assets of $31,755 thousand for the three months ended December 31, 2025, compared to $0 for the same period in 2024[233] - The revenue for the six months ended December 31, 2025, was $424,987 thousand, compared to $168,908 thousand for the same period in 2024, indicating a substantial growth[229] - Net income for the six months ended December 31, 2025, was $229.2 million, a significant improvement from a net loss of $73.6 million in 2024, driven by unrealized gains on financial instruments[288] Mining Operations - The installed hashrate capacity for Bitcoin mining was approximately 46 EH/s as of December 31, 2025[180] - The company utilizes Bitmain S21 XP, S21 Pro, S21, and T21 miners to maintain competitive mining operations and will require capital outlays for periodic upgrades to its mining fleet[210] - The company faces potential disruptions in the global supply chain for advanced mining machines, which could impact its competitive edge[211] - Access to low-cost electricity, particularly renewable power, is critical for the company's Bitcoin mining and HPC services, with increasing demand for energy driving long-term importance[212] - The Bitcoin mining reward is subject to halving adjustments, with the next halving expected to reduce the reward to 3.125 Bitcoins on April 20, 2024, and further reductions in 2028 and 2032[209] - Bitcoin mining revenue for Q4 2025 was $167.4 million, up from $113.5 million in Q4 2024, driven by an increase in Bitcoin mined from 1,347 to 1,664[245] - Total cost of revenue for Bitcoin mining rose to $63.4 million in Q4 2025 from $32.0 million in Q4 2024, primarily due to a $28.8 million increase in electricity costs[249] - Cost of revenue for Bitcoin Mining was $143.3 million for the six months ended December 31, 2025, compared to $63.6 million in 2024, primarily due to a $74.8 million increase in electricity costs[270] Strategic Partnerships and Agreements - A significant agreement with Microsoft was established, valued at approximately $9.7 billion through 2031 for dedicated GPU services[193] - The company entered into a purchase agreement with Dell for GPUs and ancillary products, totaling approximately $5.8 billion[196] Cash and Financing - Cash and cash equivalents stood at $3,260.6 million as of December 31, 2025[182] - The company reported a net cash and cash equivalents increase of $2,695.9 million, ending the period with $3,260.6 million in cash and cash equivalents[304] - The company issued 66,707,732 shares under its at-the-market offering, generating approximately $1.0 billion in proceeds[294] - The company issued $1 billion aggregate principal amount of 2031 Convertible Notes, with an initial conversion price of approximately $85.63 per Ordinary share[295] - The company issued $1.15 billion aggregate principal amount each of 2032 and 2033 Convertible Notes, both with an initial conversion price of approximately $51.40 per Ordinary share[296] - Net cash from operating activities was $214.0 million for the six months ended December 31, 2025, compared to $49.6 million for the same period in 2024[305] - Net cash used in investing activities was $1,131.8 million for the six months ended December 31, 2025, an increase of $564.3 million from $567.4 million in 2024[310] - Net cash from financing activities was $3,613.7 million for the six months ended December 31, 2025, compared to $541.7 million for the same period in 2024[312] Operational Challenges and Risks - Inflation and macroeconomic risks, including rising operating expenses, could adversely affect the company's financial condition and operations[217] - Regulatory focus on the energy impact of Bitcoin mining may lead to new measures that could restrict operations or increase power costs[213] - The company competes with various Bitcoin miners and HPC service providers, which may increase competition and reduce its share of Bitcoin network rewards[216] - The company exchanges mined Bitcoin for fiat currency daily, limiting exposure to Bitcoin price fluctuations, but faces risks related to digital asset trading platforms[220] - Tariffs imposed by the United States on imported mining equipment could lead to higher costs and impact installation timelines and expected revenue[223] Future Outlook and Expansion - The company is pursuing a strategy to diversify revenue sources into HPC and AI services beyond AI Cloud Services[181] - The company is expanding its data center capacity at the Childress site to support direct-to-chip liquid cooling GPU deployments with a combined IT load of up to 200MW[187] - The company anticipates significant investments in AI Cloud Services and data center expansions, requiring substantial additional capital[292] - The company is focusing on power cost optimization initiatives at its Childress site to enhance profitability through energy trading[318] - The company is expanding into HPC and AI services beyond AI Cloud Services, including the development of purpose-built AI data centers[318]

Financial Performance - Total revenue for Q2 FY26 decreased to $184.7 million, down from $240.3 million in Q1 FY26 [8]. - Net loss for Q2 FY26 was $(155.4) million, compared to a net income of $384.6 million in Q1 FY26 [8]. - Adjusted EBITDA for Q2 FY26 decreased to $75.3 million, down from $91.7 million in Q1 FY26 [8]. - Total revenue for the quarter ended December 31, 2025, was $184.7 million, a decrease of 23.2% from $240.3 million in the previous quarter [30]. - Bitcoin mining revenue decreased to $167.4 million from $233.0 million, while AI cloud services revenue increased to $17.3 million from $7.3 million [30]. - Adjusted EBITDA for the quarter was $75.3 million, with an adjusted EBITDA margin of 41%, compared to $91.7 million and 38% in the previous quarter [34]. - Net loss for the quarter was $155.4 million, compared to a net income of $384.6 million in the previous quarter, reflecting a significant decline [30]. - The company reported a finance expense of $10.7 million for the quarter, up from $9.3 million in the previous quarter [30]. - The company incurred a debt conversion inducement expense of $111.8 million during the quarter, impacting net income significantly [34]. Cash and Assets - IREN's cash and cash equivalents were $2.8 billion as of January 31, 2026, with over $9.2 billion in funding secured for the financial year to date [4]. - Cash and cash equivalents increased to $3,260.6 million as of December 31, 2025, from $1,032.3 million at the end of the previous quarter [32]. - Total assets rose to $7,027.6 million from $4,267.4 million, indicating strong asset growth [28]. - Total liabilities increased to $4,516.4 million from $1,391.2 million, primarily due to an increase in convertible notes payable [28]. Business Strategy and Expansion - IREN secured $3.6 billion in GPU financing for a Microsoft contract, with an interest rate of less than 6% per annum [4]. - The company is on track for a targeted 140,000 GPU expansion, aiming to deliver $3.4 billion in annual recurring revenue (ARR) by the end of calendar year 2026 [4]. - The company is expanding its data center capacity with a new 1.6GW campus in Oklahoma, increasing secured grid-connected power to over 4.5GW [4]. - The transition from Bitcoin mining to AI Cloud is ongoing, with a focus on higher-value AI workloads [8]. - IREN's ARR under contract includes approximately $0.4 billion from the Prince George site, with ongoing negotiations expected to support over $0.5 billion in ARR [4]. Adjusted EBITDA Changes - The company plans to change its definition of Adjusted EBITDA starting in the fiscal year ending June 30, 2026, to exclude debt conversion inducement expenses [26]. Non-Cash Items - The company reported significant non-cash and non-recurring items impacting net income, including unrealized losses of $(219.2) million related to convertible notes [8].

Financing - Company secured $3.6 billion in GPU financing for a Microsoft contract with an interest rate of less than 6% per annum, covering 95% of GPU-related capital expenditures [7] - The financing, along with a Microsoft prepayment of $1.9 billion, supports a targeted expansion of 140,000 GPUs, aiming to deliver $3.4 billion in annual recurring revenue (ARR) by the end of calendar year 2026 [7][14] - Over $9.2 billion in funding has been secured in the financial year to date through various sources including customer prepayments and GPU leasing [7] Data Center Expansion - A new 1.6GW data center campus is being developed in Oklahoma, increasing the company's secured grid-connected power to over 4.5GW [7] - Grid studies are complete, with power expected to ramp up from 2028, and the site spans 2,000 acres with low latency network connectivity [7] Financial Performance - For the quarter ended December 31, 2025, total revenue decreased to $184.7 million from $240.3 million in the previous quarter [27] - The company reported a net loss of $155.4 million, compared to a net income of $384.6 million in the prior quarter [27] - Adjusted EBITDA decreased to $75.3 million from $91.7 million in the previous quarter, reflecting ongoing transitions and operational challenges [30] Management Commentary - Management highlighted meaningful progress in capacity expansion, customer engagement, and capital formation, indicating a strong demand environment for AI Cloud services [8][9] - The company is focused on transitioning from Bitcoin mining to AI Cloud services, with increasing capacity allocated to higher-value AI workloads [7][8]

Core Viewpoint - IREN Limited is poised for significant revenue growth driven by AI cloud services and data center expansion, despite facing challenges related to capital spending and funding risks [2][3][6] Financial Performance - The upcoming quarterly earnings report is expected to show an earnings per share (EPS) of approximately -$0.24 and projected revenue of around $227.3 million [1][6] - IREN anticipates a revenue surge of over 92% year-over-year, reaching approximately $230 million, primarily due to AI cloud-led growth and data center expansion [2][6] Operational Insights - The company is expanding its GPU capacity to nearly 140,000 units, which is expected to enhance AI cloud service revenues and improve revenue visibility due to strong customer demand [2] - IREN has missed the Zacks Consensus Estimate three times in the past four quarters, only exceeding it once, indicating potential volatility in performance [3] Financial Ratios - The enterprise value to sales ratio is around 18.27, and the enterprise value to operating cash flow ratio is approximately 29.24, reflecting the company's valuation metrics [4] - IREN maintains a strong liquidity position with a current ratio of 5.52 and a debt-to-equity ratio of 0.34, indicating a relatively low level of debt compared to equity [4] Market Impact - The upcoming earnings report could significantly influence IREN's stock price, with management's discussion during the earnings call being crucial for assessing future earnings expectations [5]

Core Viewpoint - IREN Ltd has transitioned from a Bitcoin mining company to focusing on AI infrastructure, with a significant partnership with Microsoft valued at $9.7 billion, and the upcoming Q2 earnings will determine the success of this strategic shift [1][2][6] Group 1: Company Transformation - IREN, formerly known as Iris Energy, is pivoting towards AI infrastructure by converting its Bitcoin mining sites into data centers for AI workloads [2] - The partnership with Microsoft aims to host next-generation computing, marking a dramatic transformation from its previous business model [2] Group 2: Financial Concerns - IREN's stock has experienced a significant decline, down nearly 19% intraday and 28% over the past five days, primarily due to concerns over dilution risk rather than revenue [3][4] - The company requires approximately 140,000 GPUs by year-end, raising fears that equity issuance may be necessary to fund this expansion [4] Group 3: Earnings Significance - The upcoming Q2 earnings report is critical as it will serve as a credibility test for IREN's cloud ambitions, moving away from its Bitcoin mining roots [5][6] - Investors are looking for clear milestones and financing clarity in the earnings report to assess whether the Microsoft partnership is a strategic platform or a risky gamble [5]