IREN Reports Q2 FY25 Results

Core Insights - IREN Limited reported record revenue and operating cash flow for Q2 FY25, highlighting the impact of strategic investments on earnings [2][10] - The company is advancing significant growth initiatives, including the development of a 75MW liquid-cooled data center and a new 600MW site [2][4] Financial Performance - Q2 FY25 results showed a 129% increase in Bitcoin mining revenue to $113.5 million, driven by higher operating hashrate and Bitcoin prices [11][10] - Adjusted EBITDA reached $62.6 million, compared to $2.6 million in Q1 FY25, indicating substantial operational improvement [12][11] - Net profit after tax was $18.9 million, a significant recovery from a loss of $51.7 million in Q1 FY25 [11][12] - Operating cash inflow was $53.7 million, a turnaround from a cash outflow of $3.8 million in the previous quarter [11][12] Growth Initiatives - The Horizon 1 project involves a 75MW liquid-cooled data center designed for AI and high-performance computing, with a target completion in H2 2025 [3][6] - The Sweetwater 2 site, a new 600MW development, is expected to create a 2GW data center hub, enhancing the company's capacity [4][6] - Bitcoin mining capacity is set to expand from 31 EH/s to 52 EH/s, with the expansion on track for H1 2025 [5][11] Operational Highlights - The company secured over 500 acres of land for its projects and completed grid network studies, ensuring enhanced delivery certainty for customers [6][11] - The Childress site operates with a power price of 3 cents per kWh, contributing to a hardware profit margin of approximately 75% [11][6] - The Sweetwater 1 energization is on track for April 2026, while Sweetwater 2 is expected to be energized by 2028 [6][11] Market Position - IREN is positioned as a leading data center business focused on Bitcoin and AI, utilizing 100% renewable energy [26][28] - The company has a development portfolio of 2,310MW of grid-connected power secured across North America [28]