IREN Ltd. Q3 FY2025 earnings call

• Financial Results: Q3 posted a net profit of $24 million, a 28% quarter-on-quarter growth, with revenue reaching a record $148 million and EBITDA of nearly $83 million. - Bitcoin Mining Progress: On track to reach 50 exahash of installed Bitcoin mining capacity by June 2025. As of April 16, 2025, installed hashrate was 40 exahash, up from 1 exahash in December 2022. Paused further mining expansion beyond 50 exahash to reallocate capital to AI. - AI Cloud Momentum: GPU fleet near full utilization, with new contract wins post quarter-end, including white-labeled compute supply to leading U.S. AI Cloud providers. - Infrastructure Build-out: Horizon 1, a 50-megawatt liquid-cooled AI data center in Childress, is due for Q4 2025 delivery. Sweetwater, a 2-gigawatt flagship data center hub in West Texas, has 1,400 megawatts on track for energization in April 2026.

Bitcoin Mining: Average operating hashrate was 29.4 exahash in Q3, up 30% from Q2, driven by Childress site build-out and new hardware deployment. Revenue from mining was $141.2 million. Efficiency remained best-in-class at 15 joules per terahash, with power costs averaging $0.033 per kilowatt hour at Childress. AI Cloud: Revenue increased 33% quarter-on-quarter, with GPU fleet running at or near full utilization and hardware level margins north of 95%.

• Earnings momentum is expected to continue into Q4 FY2025. - Paused mining expansion beyond 50 exahash to focus on maximizing return on invested capital in AI. - Horizon 1 liquid-cooled AI data center is scheduled for Q4 2025 delivery, and Sweetwater 1.4 gigawatts is on track for energization in April 2026.

• Market volatility affecting Bitcoin price and unit economics of mining operations. - Dependence on successful execution of large-scale AI infrastructure build-outs, including timely completion of Horizon 1 and Sweetwater projects. - Regulatory and compliance obligations associated with operating in multiple jurisdictions.

Q: What is IREN's appetite to fill out capacity at Prince George and grow beyond?

A: Focused on risk-adjusted returns, using debt financing and customer contracts to support AI growth, with a preference for matching capital sources to uses.

Q: At what stage could JVs make sense for Horizon 1?

A: Could be relevant for project financing and equity partnerships to complement the listed environment, especially for large-scale projects like Sweetwater which require significant capital.

Q: How is the AI cloud performing in terms of uptime and utilization?

A: Tracks a range of metrics, with customers reporting favorable performance; ongoing due diligence with potential tenants at Horizon 1.

Q: How is CapEx per megawatt structured and who are potential clients for Horizon 1?

A: CapEx includes UPS and diesel gen, achieved through experience in power-dense data center build-outs. Potential clients include hyperscalers, neoclouds, and large enterprises.