IREN Limited Overview
IREN is a former Australian-founded Bitcoin miner that has reinvented itself as a vertically integrated AI cloud provider. It owns and operates all three layers of the AI infrastructure stack: grid-connected land, power and data centers; GPU compute; and, since the August 2026 Mirantis acquisition, orchestration software and enterprise support. Its strategic asset is roughly 5GW of secured grid-connection capacity across Texas, Oklahoma, British Columbia, South Australia and Spain, which is scarce in an industry constrained by power. The company has signed anchor contracts with Microsoft (US$9.7bn) and NVIDIA (US$3.4bn), cites US$4bn of contracted ARR for 2026 capacity, and is winding down Bitcoin mining by end-2026. It is financing a very large build-out through customer prepayments, investment-grade GPU financing and about US$6.3bn of FY26 convertible issuance. The equity is therefore a high-beta, execution-dependent bet on converting contracted capacity into recognised revenue.
Company's own description (Form 10-K FY2026)
IREN describes itself as "a vertically integrated AI Cloud Services platform, delivering data centers, compute and software for AI training and inference." The 10-K sets out three layers:
Data center layer: Land, power, substations, buildings and cooling. IREN develops, owns and operates its data centers, including grid connections and substations. It prefers grid-connected over behind-the-meter power for reliability and diversity of generation.
Compute layer: GPUs, CPUs, servers, storage and networking. At 30 Jun 2026, installed and on-order GPUs included AMD MI350X and NVIDIA H100, H200, B200, B300, GB300 and VR200 systems. These are offered as dedicated bare metal or managed cloud, with NVIDIA InfiniBand NDR/XDR interconnects.
Software layer: Managed services and enterprise support, strengthened by Mirantis, whose k0rdent AI platform handles GPU provisioning, cluster templating, orchestration, monitoring, metering and lifecycle management.
At 30 Jun 2026, operating AI Cloud capacity was about 40MW. Grid connection agreements or equivalents totalled about 5GW across the US, Canada, Spain and Australia, with a further multi-GW pipeline.
The company still runs a Bitcoin mining business. It had 23.2 EH/s installed at 30 Jun 2026, using about 380MW of data center capacity. Management aims to substantially complete the transition from mining to AI Cloud by 31 Dec 2026. Mined Bitcoin is generally sold daily, and no Bitcoin was held at 30 Jun 2026.
Business model and revenue model
| Revenue line | Model | FY2026 revenue (USD Mn) | Share of FY2026 revenue |
|---|---|---|---|
| AI Cloud Services | Service/subscription-like reserved-capacity contracts, mostly multi-year, priced per GPU-hour, often with customer prepayments of 20–55% of GPU capex. Bare metal and managed cloud. Software and support from Mirantis from Aug 2026 | 128.8 | 18.2% |
| Bitcoin Mining | Proof-of-work hashrate contributed to a pool; block rewards and fees sold for fiat. Exposed to Bitcoin price, difficulty and power cost | 578.2 | 81.8% |
| Total | — | 707.0 | 100% |
Source: FY26 results release, 27 Aug 2026.
The mix is moving quickly. In Q4 FY26, AI Cloud revenue of US$70.5m overtook Bitcoin mining revenue of US$66.7m for the first time. Contracted AI revenue is recognised only after delivery, commissioning and, where applicable, customer acceptance. The 10-K stresses that ramp periods, service credits and testing conditions can delay or reduce recognised revenue relative to headline ARR.
Key commercial metrics disclosed (FY26 release and 10-K FY2026):
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Operating ARR was about US$1bn at 26 Aug 2026.
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Contracted ARR for 2026 capacity was about US$4bn, and the target is to have it operational by 31 Dec 2026, subject to commissioning and acceptance.
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Recent 3-year contracts bring in more than US$20m of revenue per MW (IT), with an estimated payback of about two years. Active discussions are at about US$25m per MW (IT).
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Recent customer prepayments equal 45–55% of GPU capex.
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Cumulative capacity targets are about 0.3GW (IT) in 2026 and about 0.8GW (IT) in 2027. Earlier July 2026 framing put this at 480MW gross in 2026 and 1.2GW gross in 2027.
Value-chain position
IREN sits between power and hardware suppliers on one side and AI model builders and enterprises on the other.
Upstream: utilities and grid operators (BC Hydro, ERCOT, Public Service Company of Oklahoma, ElectraNet), GPU and system vendors (NVIDIA, AMD, Dell, Lenovo, Supermicro, Gigabyte) and EPC contractors.
Midstream: IREN owns land, substations and buildings, unlike many neoclouds that rely on third-party colocation.
Downstream: it sells compute directly or through channel partners that resell IREN capacity on a white-label basis.
Customer types and end-markets
The 10-K FY2026 lists four customer segments:
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Hyperscalers, e.g. Microsoft.
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Enterprises.
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AI developers and frontier labs, e.g. Together AI, Fluidstack, Fireworks AI, Perplexity, Figure AI, Fal AI, Hume AI, Cohere, Prometheus, Higgsfield AI, an unnamed "leading frontier AI lab", and NVIDIA for its internal research workloads.
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Channel partners.
End-markets are AI model training, AI inference and, in wind-down, Bitcoin network security.
Independent characterisation
IREN is best understood as a power-and-real-estate developer that has moved up the stack into GPU cloud. Its competitive edge rests on three things: grid capacity secured early; self-built, purpose-designed facilities (Horizon liquid-cooled halls at Childress); and a demonstrated, if dilutive, ability to raise capital at scale. About US$19bn was raised in the year to Aug 2026 across prepayments, GPU financing, convertibles and equity (Blockspace, citing FY26 disclosures).
Three features distinguish it from pure-play neoclouds such as CoreWeave and Nebius. First, it owns its data center real estate. Second, it carried a legacy cash-generating mining business that funded the pivot. Third, its software layer is new and still being integrated.
The key analytical tension is that reported GAAP revenue (US$707m in FY26) is a fraction of contracted ARR (US$4bn). That leaves FY2027 as the year in which the conversion thesis is either validated or impaired.
Strategy
Stated strategy (10-K FY2026 and FY26 release themes)
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Own all three layers of the stack (data center, compute, software) to bring compute online "quickly and at scale" and give customers more certainty than platforms that depend on third parties.
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Grid-connected power in renewable-rich regions, with geographic diversification across North America, Europe and APAC to reduce single-jurisdiction exposure and serve sovereignty and data-residency needs.
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Diversify the customer base across hyperscalers, enterprises, AI developers, frontier labs and channel partners. Management describes deliberately allocating capacity to avoid over-concentration.
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Contract structuring for financeability: credit quality, prepayments, contract duration and payback shape capacity allocation. Prepayments plus GPU financing are designed to fund 90–100%+ of GPU capex.
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Move up the value chain into managed services and software through Mirantis, with shorter-duration contracts and on-demand offerings as revenue upside.
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Build a global brand through sponsorships, events and community programmes.
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Exit Bitcoin mining by 31 Dec 2026.
Strategic initiatives, last 24 months
| Initiative | Date | Description | Targets / status |
|---|---|---|---|
| Microsoft AI Cloud contract | Nov 2025 | US$9.7bn, about 5-year GB300 contract at Childress Horizon 1–4 | Horizon 1 accepted Aug 2026; Horizons 2–4 by Q4 2026 |
| Dell equipment purchase (Microsoft) | Nov 2025 | About US$5.8bn of GB300 systems (per contemporaneous reporting; not re-verified) | Delivering 2026 |
| Microsoft GPU financing | Feb–May 2026 | US$3.6bn investment-grade USPP + DDTL at about 6.0% weighted average | Together with prepayments, funds 96% of GPU capex |
| Kiowa, Oklahoma campus | Feb 2026 | 1.6GW campus | Ramp from 2028 |
| Sweetwater 1 energisation | Apr 2026 | 1.4GW substation energised | Initial phase supports the NVIDIA contract |
| NVIDIA contract | May 2026 | US$3.4bn, 5-year, air-cooled Blackwell at Childress | Tranches from early 2027 |
| NVIDIA 5GW DSX partnership | May 2026 | Deploy up to 5GW of DSX-aligned AI factories; NVIDIA rights to invest up to US$2.1bn for 30m shares, subject to delivery of up to 600,000 GPUs | Multi-year |
| Mirantis acquisition | May–Aug 2026 | Software and services layer | Closed 4 Aug 2026 |
| Nostrum Group acquisition | May–Jun 2026 | European development platform | Closed 12 Jun 2026 |
| Bundey, South Australia | Jun 2026 | 800MW; more than 200 ongoing jobs and more than 500 construction jobs expected | Energisation from 2028 |
| US$2.8bn new contracts | Jul 2026 | Prometheus, Perplexity, Together AI and others | ARR target above US$4bn |
| Frontier AI lab contract | Aug 2026 | Multi-year AI Cloud contract (counterparty unnamed) | Part of US$4bn contracted ARR |
| Mackenzie GPU financing | Aug 2026 | US$2.4bn financing led by Blue Owl and PIMCO (as adviser) at 9.0% fixed | Funds 90% of GPU capex |
| BC liquid-cooled retrofits | 2,027 | Mackenzie, Canal Flats and Prince George | Planned |
| Security and compliance programme | Ongoing | SOC 2 for parts of the organisation; working toward organisation-wide SOC 2 and ISO/IEC 27001 | In progress |
| Community programmes | Ongoing | IREN Scholarships & Bursaries; grants in Prince George, Mackenzie, Sweetwater and Childress; IREN Ignite paid summer programme | Ongoing |
Management targets and guidance
| Target | Value | Source |
|---|---|---|
| Operating ARR (26 Aug 2026) | About US$1bn | FY26 release |
| Contracted ARR for 2026 capacity | About US$4bn, targeted operational by 31 Dec 2026 | FY26 release |
| 2026 capacity | Largely sold out | FY26 release |
| 2027 capacity | Late-stage discussions with a range of new customers over a significant portion | FY26 release |
| 2028 capacity | Customer and financing discussions progressing | FY26 release |
| Cumulative IT capacity | About 0.3GW (2026); about 0.8GW (2027) | FY26 release |
| Contract economics | More than US$20m per MW (IT) for 3-year deals; about 2-year payback | FY26 release |
| Capital resources | About US$14bn of cash, committed GPU financing and prepayments | FY26 release |
| Bitcoin exit | Substantially complete by 31 Dec 2026 | 10-K FY2026 |
No formal GAAP revenue or EBITDA guidance for FY2027 was identified. Management communicates through ARR and capacity targets and cautions that recognised revenue "may be materially lower" than ARR.
Products & Services
AI Cloud Services — Compute offerings
| Offering | Description / key specifications | Target customer | Status / timing | Pricing model |
|---|---|---|---|---|
| NVIDIA GB300 NVL72 (liquid-cooled) | Rack-scale Blackwell Ultra systems in Horizon 1–4, four 50MW (IT) direct-to-chip liquid-cooled halls at Childress. NVIDIA Exemplar Cloud designation awarded Aug 2026 after NVIDIA testing at Horizon 1 | Hyperscaler (Microsoft) | Horizon 1 delivered and accepted Aug 2026. Horizon 2 commissioning. Horizons 3–4 targeted for Q4 2026 | Multi-year reserved; US$9.7bn total contract value through 2031; 20% prepayment per tranche |
| NVIDIA HGX B300 | Air-cooled Blackwell Ultra; Exemplar Cloud status | AI developers, frontier labs, enterprises | Deployed and expanding (2026) | GPU-hour; reserved contracts |
| NVIDIA B200 / Blackwell air-cooled | Air-cooled Blackwell clusters. The NVIDIA internal-workload contract uses air-cooled Blackwell at Childress (Dell systems of about US$1.6bn, start planned early 2027) | NVIDIA (internal AI/research), AI developers | Tranches over 5 years | US$3.4bn total contract value (NVIDIA) |
| NVIDIA H200 / H100 | Hopper-generation clusters, mainly at Prince George and the British Columbia sites; IREN's first AI cloud fleet (from FY2024) | AI developers, inference customers | Operating | GPU-hour; shorter-dated contracts |
| NVIDIA VR200 (Vera Rubin) | Next-generation systems on order at 30 Jun 2026 | Frontier labs / hyperscalers | On order; timing not disclosed | — |
| AMD MI350X | AMD Instinct accelerators installed or on order | Diversified customers | Installed/on order at 30 Jun 2026 | — |
| InfiniBand NDR/XDR fabrics | High-bandwidth, low-latency GPU interconnect for distributed training | Training customers | Standard in large clusters | Bundled |
| High-performance storage | A range of storage tiers for different throughput and scalability needs | All AI Cloud customers | Operating | Included in ARR as "storage and ancillaries" |
| Bare metal delivery | Dedicated single-tenant clusters | Hyperscalers, labs | Core offering | Reserved capacity |
| Managed cloud | Multi-tenant or managed environments with orchestration and support | Enterprises, AI developers | Expanding with Mirantis | Reserved and, prospectively, on-demand |
AI Cloud Services — Software & Services (Mirantis, acquired 4 Aug 2026)
| Product | Description | Notes |
|---|---|---|
| k0rdent AI | Open-source-based platform for GPU provisioning and lifecycle management, template-based cluster and service deployment, workload orchestration and scheduling, monitoring and logging, cost and consumption visibility, and multi-cluster operations. Integrated with NVIDIA DSX OS components | Mirantis is an inaugural partner of the NVIDIA AI Cloud Ready Initiative (10-K FY2026) |
| Mirantis Kubernetes Engine (MKE) | Enterprise Kubernetes distribution | Per Converge Digest profile |
| Mirantis Container Cloud | Multi-cluster lifecycle management | Per Converge Digest profile |
| OpenStack-based cloud solutions | Private cloud infrastructure | Legacy Mirantis franchise |
| Enterprise technical support and managed services | 24/7 support and operations for more than 1,500 enterprise customers globally | Basis for the managed-services upsell |
Revenue contribution from Mirantis has not been disclosed. Analysts (VanEck) estimated the deal at about 4–5x Mirantis revenue, which implies roughly US$125–155m of annual revenue. That is an estimate only and is not company-disclosed.
Data center platform (internal capability, monetised through AI Cloud)
| Asset/design | Description |
|---|---|
| Horizon liquid-cooled halls | 50MW (IT) per hall, direct-to-chip, closed-loop, low-water designs at Childress. Four halls (200MW IT) are dedicated to Microsoft |
| Air-cooled modular halls | Free-air and chilled-coil cooling, used in British Columbia and for air-cooled Blackwell |
| DSX-aligned AI factories | Planned deployments aligned to the NVIDIA DSX reference design across up to 5GW (partnership May 2026) |
| Liquid-cooled retrofits at BC sites | New liquid-cooled deployments planned at Mackenzie, Canal Flats and Prince George during 2027 to use power headroom (FY26 release) |
Bitcoin Mining (in wind-down)
| Item | Detail |
|---|---|
| Installed hashrate | About 23.2 EH/s at 30 Jun 2026, versus about 50 EH/s in mid-2025 |
| Power allocated | About 380MW at 30 Jun 2026 |
| Fleet | Bitmain ASICs, chiefly S21-series (S21 XP and others). |
| Treasury policy | Sell mined Bitcoin daily; zero Bitcoin held at 30 Jun 2026 |
| Target | Substantially complete the transition to AI Cloud by 31 Dec 2026 |
| FY26 impairments | US$638.8m in the year, mostly from decommissioning mining hardware |
Pricing disclosures
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ARR is calculated as GPU-hour pricing for commissioned, contracted GPUs × 8,760 hours, plus storage and ancillaries.
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3-year contracts bring in more than US$20m of revenue per MW (IT), with negotiations at about US$25m per MW (IT). Management says this is more than double late-2025 levels.
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Microsoft is expected to average about US$1.94bn of annual revenue; NVIDIA about US$0.7bn per year; Prince George deployments about US$0.4–0.5bn of ARR (Q2 and Q3 FY26 releases).
Financial Narrative
Basis. FY2023–FY2026 are US GAAP. FY2022 is as originally reported under IFRS, so line items are only partly comparable. FY2021 revenue was US$8.5m and net loss US$60.4m (Stock Analysis) and is shown for context only. Figures are in US$ millions unless stated.
Income statement: notes and sources
Sources: FY26 release (FY2025–FY2026); Stock Analysis (FY2022–FY2024 revenue, cost of revenue, SG&A, operating income, pre-tax, net income); ChartRow/SEC index (EPS). Because FY2022 was reported under IFRS, its operating-line data is omitted.
Margin profile (%)
Derived. Revenue CAGR FY2022–FY2026 is about 86% (four-year, derived); revenue CAGR FY2023–FY2026 is about 112% (derived).
Commentary.
FY2022–FY2023: These were crisis years. A collapsing hashprice, the equipment-financing default and impairments produced large losses even though revenue grew.
FY2024: The business inflected as Childress ramped and mining efficiency improved, taking revenue to US$187.2m and nearly breakeven at the pre-tax line.
FY2025: This was the peak year for mining. About 50 EH/s and strong Bitcoin prices drove revenue up 168% to US$501.0m, with the first net profit (US$86.9m), helped by US$77.5m of unrealised gains on capped calls and the prepaid forward.
FY2026: the reinvention year: - Revenue still grew 41%, but operating income swung to a loss of US$1,046.7m because of three forces:
1. US$638.8m of impairments, mostly from retiring ASICs.
2. D&A more than doubled to US$417.7m as GPUs entered service.
3. SG&A tripled to US$449.1m, including US$205.0m of stock-based compensation and the cost of building a global sales, product and security organisation.
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Below the operating line, US$558.5m of unrealised gains on capped calls and prepaid forwards offset much of the loss. A US$111.8m debt conversion inducement and a US$110.6m fair-value write-down of assets held for sale added to it.
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Adjusted EBITDA fell only 9% to US$245.7m. The Q4 run-rate of US$19.2m (14% margin) shows the trough before AI revenue ramps.
Balance sheet
Sources: FY26 release balance sheet (FY2025–FY2026); Stock Analysis (cash, goodwill and net cash FY2022–FY2024; total debt FY2022–FY2024 derived from cash less net cash). Negative net debt means net cash. FY2025 total debt includes about US$1.5m of operating leases.
Commentary.
Scale-up: The balance sheet grew more than fivefold in FY2026, from US$2.9bn to US$15.8bn of total assets.
Cash and liabilities: The US$7.6bn of total cash includes US$1.67bn restricted to the Microsoft GPU financing. US$1.84bn of deferred revenue, mostly long-term, reflects customer prepayments that are effectively interest-free funding.
Debt mix: Gross debt of about US$7.8bn is mostly convertible notes, about US$6.3bn issued in FY26, plus a US$938m drawn financing facility.
Intangibles: Goodwill of US$36.6m and intangibles of US$317.4m relate mainly to the Nostrum acquisition and to capitalised intangibles, including US$107.6m of intangible-asset payments. Mirantis closed after year-end and will add further goodwill in FY2027.
Cash flow
Source: FY26 release cash flow statement.
Commentary. Reported FY26 operating cash flow of US$2.1bn is flattered by US$1.84bn of prepayments, most of it in Q4 (US$1.72bn). Excluding prepayments, underlying operating cash flow was flat at about US$0.26bn. Free cash flow was deeply negative at −US$2.2bn, and investing outflows totalled US$4.7bn. The funding model has three legs: prepayments cover 20–55% of GPU capex; GPU financing covers 90–96% when combined with prepayments; and corporate-level equity and convertibles fund land, power and shells.
Ratio analysis
All ratios are derived. ROIC is not meaningful for FY2026: NOPAT is negative and invested capital is dominated by assets still under construction. The cash conversion cycle is not meaningful because receivables are small (US$21.1m), inventories are immaterial and payables are construction-driven (US$1.83bn).
Ratio commentary. Leverage metrics look stretched against trailing EBITDA (net debt/Adj. EBITDA of 7.9x). That is typical at this stage of a build-out: debt and capex arrive 6–18 months before contracted revenue. The right forward test is net debt against end-2026 operating ARR of about US$4bn (target), where implied leverage falls well below 1x if EBITDA margins resemble AI Cloud contribution margins. That outcome depends entirely on execution. The convertibles are low-coupon (0–3.5%), and the 2033 notes pay 1.00%, which keeps cash interest modest relative to the debt quantum.
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Income Statement and Per-Share Data
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Revenue (USD Mn) | 59.0 | 75.5 | 187.2 | 501.0 | 707.0 |
Cost of revenue excl. D&A (USD Mn) | — | 39.4 | 87.1 | 159.0 | 219.7 |
Gross profit excl. D&A (USD Mn) | — | 36.1 | 100.1 | 342.0 | 487.3 |
SG&A (USD Mn) | — | 49.0 | 70.4 | 136.5 | 449.1 |
Stock-based compensation (USD Mn) | — | — | — | 42.6 | 205.0 |
Depreciation & amortisation (USD Mn) | — | — | — | 181.1 | 417.7 |
Impairment of assets (USD Mn) | — | — | — | 7.2 | 638.8 |
Operating income (loss) (USD Mn) | — | -157.2 | -27.2 | 17.3 | -1,046.7 |
Adjusted EBITDA (USD Mn) | — | — | — | 269.7 | 245.7 |
Finance expense (USD Mn) | — | — | — | 11.0 | 59.3 |
Interest income (USD Mn) | 0.1 | 0.9 | 5.8 | 7.5 | 80.6 |
Unrealised gain on financial instruments (USD Mn) | — | — | — | 77.5 | 558.5 |
Debt conversion inducement expense (USD Mn) | — | — | — | 0 | 111.8 |
Pre-tax income (loss) (USD Mn) | -417.1 | -169.4 | -25.5 | 93.5 | -708.7 |
Net income (loss) (USD Mn) | -419.8 | -171.8 | -28.9 | 86.9 | -702.6 |
Diluted EPS (USD) | — | — | — | 0.39 | -2.22 |
Dividends per share (USD) | 0 | 0 | 0 | 0 | 0 |
Margin Analysis (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Gross margin excl. D&A (%) | — | 47.8 | 53.5 | 68.3 | 68.9 |
Operating margin (%) | — | -208.2 | -14.5 | 3.5 | -148.0 |
Adjusted EBITDA margin (%) | — | — | — | 53.8 | 34.8 |
Net margin (%) | -710.9 | -227.6 | -15.4 | 17.3 | -99.4 |
Revenue growth YoY (%) | 595.7 | 27.9 | 147.9 | 167.6 | 41.1 |
Balance Sheet
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Cash & cash equivalents (USD Mn) | 110.0 | 68.9 | 404.6 | 564.5 | 5,895.6 |
Restricted cash, current + non-current (USD Mn) | 0 | 0 | 0 | 0 | 1,724.0 |
Total current assets (USD Mn) | — | — | — | 641.2 | 7,886.1 |
Property, plant & equipment, net (USD Mn) | — | — | — | 1,930.6 | 6,753.2 |
Goodwill + intangibles (USD Mn) | 0.6 | 0 | 0 | 0 | 354.0 |
Total assets (USD Mn) | — | — | — | 2,940.3 | 15,790.0 |
Debt, current (USD Mn) | — | — | — | 0 | 169.4 |
Debt, non-current (USD Mn) | — | — | — | 962.8 | 7,423.6 |
Finance lease liabilities (USD Mn) | — | — | — | 0 | 243.8 |
Total debt incl. leases (USD Mn) | 108.3 | 1.4 | 1.3 | 964.2 | 7,836.8 |
Net debt excl. restricted cash (USD Mn) | -1.7 | -67.5 | -409.8 | 399.7 | 1,941.2 |
Net debt incl. restricted cash (USD Mn) | — | — | — | 399.7 | 217.2 |
Deferred revenue, total (USD Mn) | — | — | 2.6 | 0.9 | 1,842.6 |
Total liabilities (USD Mn) | — | — | — | 1,122.8 | 11,604.4 |
Shareholders' equity (USD Mn) | — | — | — | 1,817.5 | 4,185.6 |
Working capital (USD Mn) | — | — | — | 491.9 | 5,665.0 |
Cash Flow
| Metric | FY2025 | FY2026 |
|---|---|---|
Net cash from operating activities (USD Mn) | 245.9 | 2,100.4 |
of which: increase in deferred revenue (USD Mn) | -1.7 | 1,841.7 |
Operating cash flow excl. deferred revenue (USD Mn) | 247.6 | 258.7 |
Payments for PP&E excl. hardware (USD Mn) | 573.5 | 2,998.0 |
Payments for computer hardware (USD Mn) | 799.2 | 1,335.1 |
Total capex, PP&E + hardware (USD Mn) | 1,372.7 | 4,333.1 |
Free cash flow, OCF − capex (USD Mn) | -1,126.8 | -2,232.7 |
Payment for acquisition of subsidiaries (USD Mn) | 0 | 92.5 |
Proceeds from ordinary share issuance (USD Mn) | 601.8 | 4,742.8 |
Proceeds from convertible notes (USD Mn) | 701.2 | 6,299.6 |
Cash paid for induced conversion of notes (USD Mn) | 0 | 1,623.5 |
Payment for capped calls (USD Mn) | 0 | 448.9 |
Proceeds from financing facility (USD Mn) | 0 | 938.0 |
Net cash from financing activities (USD Mn) | 1,294.7 | 9,680.1 |
Dividends paid (USD Mn) | 0 | 0 |
Share buybacks (USD Mn) | 0 | 0 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2025 | FY2026 |
|---|---|---|
ROE, net income / year-end equity (%) | 4.8 | -16.8 |
ROE, net income / average equity (%) | — | -23.4 |
ROA, net income / year-end total assets (%) | 3.0 | -4.4 |
ROA, net income / average total assets (%) | — | -7.5 |
Current ratio (x) | 4.29 | 3.55 |
Debt incl. leases / equity (x) | 0.53 | 1.87 |
Net debt excl. restricted cash / Adjusted EBITDA (x) | 1.48 | 7.90 |
Adjusted EBITDA / finance expense (x) | 24.5 | 4.1 |
Asset turnover, revenue / year-end total assets (x) | 0.17 | 0.04 |
Region (Asset Location) Overview
| Region (asset location) | Revenue streams | FY2024–FY2026 qualitative trend |
|---|---|---|
Canada, British Columbia (Canal Flats 30MW, Prince George 50MW, Mackenzie 80MW) | Bitcoin mining (historic core); AI Cloud (H100/H200/B200/B300 at Prince George and others) | Mining declining as ASICs are retired. AI Cloud rising: Prince George about US$0.4–0.5bn of contracted ARR. The Mackenzie air-cooled expansion is financed by the US$2.4bn Blue Owl/PIMCO facility |
United States, Texas (Childress 750MW) | Bitcoin mining (large share of FY2025–FY2026 hashrate); AI Cloud (Horizon 1–4 for Microsoft; air-cooled Blackwell for NVIDIA) | Fastest-growing region from FY2027 as Microsoft ramps. Mining being wound down |
United States, Texas (Sweetwater 1 1,400MW, Sweetwater 2 600MW) | Pre-revenue | Sweetwater 1 substation energised Apr 2026; Sweetwater 2 targeted late 2027. Included in ERCOT Batch Zero as Base Load (Sep 2026) |
United States, Oklahoma (Kiowa 1,600MW) | Pre-revenue | Capacity ramp from 2028 |
Australia (Bundey 800MW) | Pre-revenue | Energisation from 2028 |
Spain (Badajoz about 300MW, plus Nostrum pipeline) | Pre-revenue | Development stage |
Global (Mirantis software and support) | Software/support revenue from FY2027 | New; size not disclosed |
Value by Reference
| Reference | Value | Source / date |
|---|---|---|
IPO price (Nov 2021) | 28.00 | IPO prospectus / contemporaneous reports |
52-week low | 28.93 | AD HOC NEWS, as of 7 Oct 2026 |
52-week high | 76.87 | Nov 2025 (AD HOC NEWS; The Block) |
Close, 19 May 2026 | 47.74 | 24/7 Wall St |
Close, 3 Aug 2026 | 39.75 | Stock Analysis |
Close, 4 Sep 2026 | 44.68 | Stock Analysis |
Close, 25 Sep 2026 | 44.13 | TIKR |
Close, 2 Oct 2026 | 41.76 | ChartRow |
Close, 7 Oct 2026 | 38.69 | AD HOC NEWS |
Valuation Multiples
| Multiple | IREN | Basis |
|---|---|---|
Market capitalisation (USD Bn) | 15.3 | Price × shares |
Enterprise value excl. restricted cash (USD Bn) | 17.2 | Market cap + US$7.84bn debt incl. leases − US$5.90bn cash |
Enterprise value incl. restricted cash (USD Bn) | 15.5 | Also subtracts US$1.72bn restricted cash |
EV/Adjusted EBITDA (FY2026) (x) | 70.0 | 17.2 / 0.2457 |
EV/Sales (FY2026) (x) | 24.3 | 17.2 / 0.707 |
EV/Operating ARR (about US$1bn) (x) | 17.2 | — |
EV/Contracted 2026 ARR (about US$4bn) (x) | 4.3 | — |
P/B (FY2026 year-end equity) (x) | 3.7 | 15.3 / 4.19 |
Valuation Snapshot
| Metric | Value | Source |
|---|---|---|
Consensus rating | Buy (20 analysts) | Stock Analysis via AD HOC NEWS, 7 Oct 2026 |
Average 12-month price target | US$78.14 | Same |
Rating distribution | 1 Strong Buy, 16 Buy, 3 Hold, 1 Sell | MarketBeat, Sep 2026 |
Notable recent action | Rothschild & Co Redburn: initiated Neutral, PT US$40 (21 Sep 2026) | TIKR |
Notable recent action | A Buy with PT US$79 (broker not identified in source) | MarketBeat, Sep 2026 |
Next earnings | 5 Nov 2026 (Q1 FY27); consensus EPS −US$0.46 | ChartRow |
Last surprise | Q4 FY26 EPS −US$0.41 vs −US$0.50 consensus | ChartRow |
Capital Markets
| Item | Status |
|---|---|
Dividend history | None ever paid |
Dividend policy | No current intention to pay (10-K FY2026) |
Buyback authorisation | None disclosed |
Corporate credit ratings (Moody's / S&P / Fitch) | No public issuer ratings identified. The US$3.6bn Microsoft-backed GPU financing is described as investment-grade rated at instrument level |
Capital Instruments
| Instrument | Coupon | Maturity | Principal outstanding at 30 Jun 2026 | Notes |
|---|---|---|---|---|
2029 convertible senior notes | 3.50% | 2029 | — | Originally about US$440m (Dec 2024) |
2030 convertible senior notes | 3.25% | 2030 | — | Issued Jun 2025 |
2031 convertible notes | — | 2031 | 1,000 | Issued 14 Oct 2025 |
2032 convertible notes | — | 1 Jun 2032 | 1,150 | Issued 8 Dec 2025 |
2033 (Jun) convertible notes | — | 1 Jun 2033 | 1,150 | Issued 8 Dec 2025 |
2033 (Dec) convertible notes | 1.00% | 1 Dec 2033 | 3,000 | Issued 14 May 2026; 32.5% conversion premium; capped call cap US$110.30 |
GPU financing facility (Microsoft; USPP + DDTL) | About 6.0% weighted average | — | 938 drawn at 30 Jun 2026 (financing facility proceeds) | US$3.6bn committed |
GPU financing (Mackenzie; Blue Owl/PIMCO-led) | 9.0% fixed | — | Committed post-year-end | US$2.4bn |
Finance leases | — | Various | 243.8 | — |
Total debt + leases (balance sheet) | — | — | 7836.8 | Debt US$7,593.0m + leases US$243.8m |
Maturity bucket | Principal (US$m, convertibles and known facilities) | — | — | — |
Within 12 months (current debt + leases) | 294.7 | — | — | — |
| 2,031 | 1,000 | — | — | — |
| 2,032 | 1,150 | — | — | — |
| 2,033 | 4,150 | — | — | — |
Analyst Conclusions
Management guidance recap
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About US$4bn of contracted ARR for 2026 capacity, targeted operational by 31 Dec 2026; about US$1bn operating at 26 Aug 2026.
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Cumulative IT capacity of about 0.3GW in 2026 and about 0.8GW in 2027, plus liquid-cooled BC retrofits in 2027.
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Horizons 2–4 delivered to Microsoft by Q4 2026.
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Bitcoin mining exit substantially complete by 31 Dec 2026.
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About US$14bn of available capital, including committed GPU financing and prepayments.
Consensus expectations
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Near-term consensus is for continued losses: Q1 FY27 EPS of −US$0.46 against −US$0.34 a year earlier.
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The sell side's average PT of about US$78 implies it underwrites largely full conversion of the US$4bn ARR during calendar 2027.
Bull case
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Contracted conversion. If even 75% of the US$4bn ARR is billing by mid-2027, annualised revenue would be about US$3bn, roughly 4x FY26. AI Cloud contribution margins (86.9% in FY26) would support EBITDA above US$2bn, implying about 8x current EV.
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Rising unit economics and cheap capital. More than US$20m per MW (IT) with about 2-year paybacks, funded 90–96% by prepayments plus GPU financing, means incremental equity needs per MW are falling sharply.
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Pipeline optionality. About 5GW of secured power plus NVIDIA's 5GW DSX alignment could support more than 10x today's capacity. Against private-market values for powered land, that may be under-reflected in an EV of about US$15–17bn.
Bear case
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Execution and timing. Only about 40MW was operating at FY-end. Acceptance tests, ramp periods and Texas regulatory delays (Batch Zero audit) could push revenue well into 2027–2028 while depreciation and interest start immediately. Q4 FY26 Adjusted EBITDA was just US$19.2m.
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Dilution and capital structure. US$4.74bn of equity and US$6.3bn of convertibles were raised in FY26, and further raises will be needed for 2028 capacity. Combined with NVIDIA's rights over 30m shares, per-share value creation could lag enterprise growth.
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Counterparty and obsolescence risk. Outside Microsoft and NVIDIA, the customer base includes venture-funded AI developers. GPU generations turn over every 12–18 months, and FY26's US$638.8m mining impairment shows how quickly hardware value can be written off.
Catalysts and monitorables (next 12 months)
| Catalyst / monitorable | Timing |
|---|---|
| Q1 FY27 results; operating ARR update | 5 Nov 2026 |
| 2026 proxy (DEF 14A) and AGM: board, compensation, B Class matters | Oct–Nov 2026 |
| Horizons 2–4 delivery and Microsoft acceptance | Q4 2026 |
| Operating ARR reaching about US$4bn | By 31 Dec 2026 |
| Completion of Bitcoin exit; further impairments | H2 CY2026 |
| ERCOT Batch Zero verification outcome and Sweetwater energisation path | Late 2026 – 2027 |
| 2027 capacity contracting (late-stage talks) and named frontier-lab disclosure | H1 CY2027 |
| NVIDIA investment-rights exercise tied to GPU deliveries | 2026–2027 |
| Mirantis revenue disclosure and managed-services attach rates | FY2027 reporting |
| New financing (GPU, corporate) and dilution | Ongoing |
Analyst verdict
IREN has carried out one of the most complete strategic pivots in the listed digital-infrastructure universe. In about 18 months, a Bitcoin miner earning almost all its revenue from hashrate has become a vertically integrated AI cloud provider. It holds a US$9.7bn Microsoft contract, a US$3.4bn NVIDIA contract, about US$4bn of contracted ARR for 2026 capacity, and roughly 5GW of secured grid power across four countries.
The FY2026 accounts show the cost of that pivot. The company lost US$702.6m, impaired US$638.8m of mining hardware, spent US$4.3bn of capex and raised about US$11bn of equity and convertible capital. Operating AI capacity at year-end was only about 40MW.
The investment debate is therefore about timing and conversion, not about demand. Management's claims that 2026 capacity is largely sold out and that 3-year contract pricing has more than doubled are corroborated by named counterparties and by investment-grade financing terms (about 6%). Those terms would be hard to obtain without credible offtake.
At about US$15–17bn of EV, the market pays roughly 4x contracted 2026 ARR but about 17x operating ARR. That valuation implicitly assumes most of the backlog bills during 2027 at margins close to the 87% AI contribution margin seen in FY26, before depreciation.
The risks are real and specific: Texas grid politics, acceptance-driven revenue lags, a growing convertible stack, a founder-weighted governance structure, and customer concentration with Microsoft. Even so, IREN's ownership of land, power and buildings, its NVIDIA alignment and its proven access to capital put it among the better-positioned second-tier neoclouds.
Our synthesis is constructive but execution-gated. The next three quarters are a binary test. Delivery of Horizons 2–4, reaching about US$4bn of operating ARR by December 2026, and visible contracting of 2027 capacity would support a re-rating toward consensus targets. Slippage on any of these would leave the equity exposed to further dilution and multiple compression.
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View Subscription PlansExecutive Leadership
Executive Leadership Team
| Name | Title | Tenure | Prior roles / background | Education | Age |
|---|---|---|---|---|---|
Daniel Roberts | Co-Founder, Co-CEO, Executive Director | Since 2018 | — | — | — |
William Roberts | Co-Founder, Co-CEO, Executive Director | Since 2018 | — | — | — |
Anthony Lewis | Chief Financial Officer (from 8 Sep 2025); Chief Capital Officer from 1 Jul 2025 | Since Jul 2025 | 22 years at Macquarie Group, most recently Co-Treasurer covering global funding, liquidity, capital management and regulatory reporting | Not disclosed in reviewed sources | 49 (8-K, Sep 2025) |
Kent Draper | Chief Commercial Officer | Multi-year (title per prior disclosures) | — | — | — |
John Gross | Chief Innovation Officer | Since Feb 2026 | About two decades in data center engineering; senior roles at ASHRAE | — | — |
Kambiz Aghili | Chief Product Officer | Since Jul 2026 | VP Products at Oracle Cloud Infrastructure, led the multi-cloud platform across AWS, Azure and GCP | — | — |
Michael Nudelman | Chief Development Officer | Since Jul 2026 | More than 20 years in data center development, energy and finance; senior roles at Google, CyrusOne and Beale Infrastructure | — | — |
Eric Hammersley | Chief Information Security Officer | Since 15 Jul 2026 | VP Engineering and Chief Product Security Officer at Nutanix; product security architecture for NVIDIA HPC; Chief Engineer supporting the Joint Chiefs of Staff (J6); US Navy veteran | — | — |
Chief Marketing Officer | — | 2,026 | Referenced in 10-K FY2026 as a recent appointment | — | — |
Alex Freedland | Founder & CEO, Mirantis (subsidiary) | Mirantis since its founding | Mirantis founder | — | — |
Board of Directors
| Director | Role | Independence | Notes |
|---|---|---|---|
David Bartholomew | Chair | Independent (as previously disclosed) | — |
Daniel Roberts | Executive Director | Not independent | Co-founder |
William Roberts | Executive Director | Not independent | Co-founder |
Christopher Guzowski | Non-executive Director | Independent (prior disclosure) | — |
Michael Alfred | Non-executive Director | Independent (prior disclosure) | — |
Sunita Parasuraman | Non-executive Director | Independent (prior disclosure) | — |
Major Shareholders
| Holder | Shares | Stake (approx., of 394.1m) | Source/date |
|---|---|---|---|
Situational Awareness LP | 11,698,835 | 3.0% | MarketBeat, Sep 2026 (13F-based) |
Bank of America Corp | 2,138,619 | 0.5% | MarketBeat, Sep 2026 |
NVIDIA (investment rights) | Up to 30,000,000 shares via rights, subject to GPU-delivery and regulatory conditions | Up to about 7% if exercised | 10-Q Q3 FY26; 10-K FY2026 |
Institutional ownership (total) | — | 41.08% | MarketBeat, Sep 2026 |
Competitive Landscape
Competitors by Segment
| Segment | Competitor | Positioning vs IREN |
|---|---|---|
Hyperscale cloud | Microsoft Azure | Customer and competitor; sets price and quality benchmarks |
Hyperscale cloud | Amazon Web Services | Largest cloud; custom silicon (Trainium) |
Hyperscale cloud | Google Cloud | TPUs; vertically integrated |
Hyperscale cloud | Oracle Cloud Infrastructure | Aggressive AI capacity build; large multi-GW contracts |
Specialised neocloud | CoreWeave | Scale leader among neoclouds; strong software (Weights & Biases acquisition) |
Specialised neocloud | Nebius | Software-rich full stack; commands premium pricing per MW (per analyst commentary) |
Specialised neocloud | Crusoe | Power-first developer and cloud |
Specialised neocloud | Lambda | Developer-focused GPU cloud |
Specialised neocloud | Nscale | European neocloud |
Other (named in 10-K) | SpaceX | Named by IREN as a competitor in AI cloud |
Miner-to-AI converters | Cipher Mining, TeraWulf, Core Scientific, Hut 8, Applied Digital, Galaxy Digital, Bitfarms | Compete for power, sites and hyperscale leases. Many lease shells (colocation) rather than operate GPU clouds |
Bitcoin mining (legacy) | MARA Holdings, Riot Platforms, CleanSpark, Cipher | Being exited by IREN |
Peer Comparison FY2026
| Metric | IREN (FY Jun-2026) | CoreWeave (CY2024) | Nebius (CY2024) | Core Scientific (CY2024) |
|---|---|---|---|---|
Revenue (USD Mn) | 707.0 | 1,915.4 | 117.5 | 510.7 |
Revenue growth (%) | 41.1 | 737 | 462 | 2 |
Adjusted EBITDA margin (%) | 34.8 | Not compared | Not compared | Not compared |
Net margin (%) | -99.4 | -45 | Loss-making | Loss-making |
R&D intensity (%) | — | Not compared | Not compared | Not compared |
“—” = not publicly disclosed.
Competitive Advantages & Vulnerabilities
| Advantages (evidence) | Vulnerabilities (evidence) |
|---|---|
About 5GW of secured grid capacity across four countries (10-K FY2026) | Small operating base: about 40MW of AI capacity at 30 Jun 2026 versus multi-hundred-MW operating peers |
Owned land, substations and buildings, so no colocation margin leakage (10-K) | Customer concentration: Microsoft is about US$1.94bn of the roughly US$3.7–4bn ARR (Q3 FY26 release) |
Validated by Microsoft (US$9.7bn) and NVIDIA (US$3.4bn plus up to US$2.1bn equity) | Software layer only just acquired; integration risk |
Investment-grade GPU financing at about 6% (US$3.6bn) | Non-investment-grade deployments financed at 9% (US$2.4bn) |
Rising unit economics: more than US$20m per MW (IT), about 2-year payback | Heavy dilution: shares outstanding rose to about 394m; US$4.74bn of equity issued in FY26 |
Exemplar Cloud status on GB300 NVL72 and B300 | Texas regulatory overhang (SB 6, Batch Zero audit) |
Recent Developments
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