IREN February 2025 Monthly Update

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]