Snapshot
- Ticker: IREN (Nasdaq, formerly Iris Energy)
- Bucket: Data-Center Operators (HPC Pivots)
- Q4 2025 fund position: $328.6 M (8.70 M sh) — 5.96 % of 13F, #7 holding
- Fiscal year: ends June 30
- HQ: Sydney (with US operations HQ in Texas)
Business Overview
IREN runs a vertically-integrated digital infrastructure platform — combining renewable-powered Bitcoin self-mining with an AI Cloud business that deploys NVIDIA H100 / H200 / B200 / GB200 GPUs against on-demand and reserved-capacity contracts. The portfolio sits across:
- Childress, Texas (~750 MW, primarily wind/solar with grid backup) — the legacy mining campus, now also hosting AI cloud capacity.
- Sweetwater, Texas (Sweetwater 1: 1.4 GW under construction; Sweetwater 2: planned) — purpose-built HPC sites with liquid cooling, redundant fiber, and tier-III uptime.
- British Columbia, Canada (Mackenzie + Prince George — hydro powered) — the original Iris Energy sites, now smaller share of total capacity.
Unlike Core Scientific (which is mostly a real-estate-and-power host), IREN owns its GPUs on-balance-sheet and earns the cloud-rental margin directly. This captures more of the value chain than pure colocation but exposes IREN to GPU obsolescence and utilization risk.
Financial Trajectory
| Metric (USD M) | FY24 (Jun-end) | FY25 (Jun-end) | YoY |
|---|---|---|---|
| Revenue total | 187.2 | 501.0 | +168 % |
| — Bitcoin mining | — | 484.6 (96.7 %) | — |
| — AI Cloud | — | 16.4 (3.3 %) | — |
| Adjusted EBITDA | — | 269.7 | +395 % |
| EBITDA margin | — | 54 % | — |
| Net income | (28.9) | +86.9 | swing to profit |
FY25 was IREN’s first profitable year — revenue tripled, EBITDA nearly quintupled, and the company swung from a 87 M net profit. The headline profitability is driven by Bitcoin economics in a post-halving but BTC-price-elevated environment, but the strategic value of FY25 is the inflection of the AI Cloud business from launch to material monetization.
Balance Sheet (6/30/25)
| Item | $M |
|---|---|
| Cash | 564.5 |
| Total assets | 2,940.3 |
| Total debt (convertibles) | 962.8 |
| Equity | 1,817.5 |
Capital raises during FY25 totaled ~602 M ATM equity + $701 M convertible note issuance. The ATM dilution was substantial but funded the Sweetwater build-out and GPU fleet expansion without taking on bank debt.
Key Operational KPIs (FY25 / 6-30-25)
| KPI | Value |
|---|---|
| Hashrate | 50 EH/s (+400 % YoY) |
| Operating data-center capacity | 810 MW (+212 %) |
| Contracted grid power | 2,910 MW (+35 %) |
| GPUs deployed | ~1,900 |
| GPUs targeted by Dec 2025 | 10,900 |
| Annualized AI Cloud revenue (target) | $200–250 M |
Sweetwater 1 — the Anchor Asset
The Sweetwater Texas campus is the most ambitious HPC build in the bucket and the basis of the fund’s conviction:
- 1.4 GW design capacity at the first phase site
- Energization advanced to April 2026 per the most recent update
- Combined with Childress (100 MW HPC carve-out) and Sweetwater 2, IREN targets ~2 GW of HPC capacity by 2027
- Liquid-cooled, designed for GB200/GB300 NVL72 racks from inception (no retrofit risk)
- IREN intends to operate Sweetwater as a mix of (a) AI Cloud capacity it sells directly and (b) colocation hosting for hyperscaler-class tenants
Why It Fits the Thesis
IREN is the bucket’s second-largest position and offers a different expression than Core Scientific: rather than only renting buildings, it owns GPUs and earns the cloud-rental spread. This captures more of the value chain (and more risk). The fund holding both CORZ and IREN suggests deliberate diversification across “real-estate-only” and “real-estate + GPUs” expressions of the same theme.
The 168 % FY25 revenue growth and the inflection to GAAP profitability also distinguish IREN from peers in the bucket — most of whom are still loss-making at the consolidated level.
Position History in the Fund
| Quarter | Position |
|---|---|
| Q1 2025 | New |
| Q2 2025 | Held |
| Q3 2025 | Maintained |
| Q4 2025 | 8.70 M sh |
Risks
- Capex intensity. Sweetwater 1 build is multi-billion-dollar over multiple years; financing risk if AI demand softens before full lease-up.
- GPU obsolescence. Owning the GPU fleet means depreciation accrues to IREN; new generations could compress unit economics on the H100/H200 base before full payback.
- Bitcoin price exposure. Still 97 % of revenue. If BTC corrects materially during the AI build-out, free cash flow to fund Sweetwater shrinks.
- Australian dual-listing complexity in valuation across US and Australian shareholder bases.
- Competition from CoreWeave for the same NVIDIA allocations and customer pipeline.