IREN Limited Q4 FY2025 earnings call

• FY 2025 Highlights: Record results with 10x EBITDA growth, contracted grid-connected power increased by over 1/3 to nearly 3 GW, operating data center capacity tripled to 810 MW, Bitcoin mining capacity expanded 400% to 50 exahash, and AI GPU deployments scaled.
• AI Cloud Strategy: Uniquely positioned with vertical integration, controlling key bottlenecks (power, data centers). Leading with bare metal service, NVIDIA preferred partner status enhances supply access. Plans to scale to over 60,000 NVIDIA GB300s in BC and up to 80,000 with Horizon 1.
• Data Center Projects: Prince George: Transitioning to AI, retrofitting for air-cooled GPUs and building liquid-cooled data center. Childress: Horizon 1 on track for Q4 2025, Horizon 2 in early works. Sweetwater: 2-gigawatt hub on track for energization in April 2026.

Bitcoin Mining: The 50 exahash platform generated over $1 billion in annualized revenue at current economics. AI Cloud: Scaling rapidly with over 10,000 GPUs online or being commissioned. Annualized revenue from AI cloud expected to be $200 million to $250 million by December, with potential to reach billions from AI cloud alone. Combined operations are approaching annualized revenue of $1.25 billion.

• AI Cloud Growth: Expect annualized revenue of $200 million to $250 million by December from AI cloud expansion, with potential for billions from AI cloud alone.
• Financing: Funding growth through strategic financing and cash flows from existing operations. Near-term CapEx fully funded by cash flows and recent financing.
• Expansion: Continued scaling of AI infrastructure stack, with visibility to billions in revenue from AI cloud.

• Infrastructure Delivery Risks: Delaying or missing milestones in data center projects due to complex project delivery, workforce, and safety issues.
• Market Demand Uncertainty: Fluctuations in AI cloud demand affecting revenue projections.
• Financing Risks: Dependence on favorable financing terms and market conditions for capital diversification.

Q: On efficiency at sites and backup generation A: Kent Draper discussed PUE ratios and customer-driven deployments, redundancy for customer service.

Q: On cloud business contracts and CapEx A: Kent Draper mentioned range of contract lengths, Anthony Lewis on financing and leverage.

Q: On Horizon 1 and 2, demand partners A: Daniel Roberts talked about monetization options, financing, and demand from Fluidstack.

Q: On GPU financing and colocation A: Anthony Lewis and Daniel Roberts discussed leasing structures, cost of capital, and cloud vs. colocation.

Q: On sales and hiring A: Kent Draper and Daniel Roberts talked about hiring across stack, sales drivers (vertical integration, performance, cost).

Q: On cloud GPU strategy and power dynamics A: Daniel Roberts and Kent Draper discussed ordering GPUs with customer demand, power usage per GPU.

Q: On Horizon 1 utilization and colocation A: Kent Draper mentioned flexibility in monetization, no conflict between cloud and colocation.

Q: On colocation decision and Sweetwater customers A: Daniel Roberts discussed Horizon 2 decision based on optionality, Sweetwater customer profiles.