IREN Pauses Bitcoin Mining Expansion to Focus on AI Cloud and Data Center Growth

IREN Limited (NASDAQ:IREN) (together with its subsidiaries, "IREN"), today provided a business update and strategic outlook, highlighting momentum in its AI/HPC segments and an evolving capital allocation strategy aligned with current market conditions.

"As we near completion of our 50 EH/s mining expansion, our focus is shifting to the next phase of growth and delivering scalable infrastructure for AI and HPC through our AI Cloud Services and AI Data Center businesses," said Daniel Roberts, IREN Co-Founder and Co-CEO.

"Our capital strategy prioritizes customer prepayments and a range of debt financing solutions, with the existing ATM facility providing a strategic backstop to support delivery certainty and ongoing commercial discussions relating to the AI Cloud Services and AI Data Center businesses."

Bitcoin Mining Expansion Paused

IREN will pause all further Bitcoin Mining expansion upon completion of its 52 EH/s buildout.

This strategic shift reflects a deliberate reallocation of capital and continued management focus toward AI data centers and cloud infrastructure, while continuing to leverage strong cashflows generated by IREN's existing Bitcoin mining business.

Core Business Overview

IREN operates across three business verticals: Bitcoin Mining, AI Cloud Services, and AI Data Centers:

1. Bitcoin Mining

• Installed capacity increased from 31 EH/s to 35 EH/s, following energization of Childress Phase 4.
• On track to complete expansion to 50 EH/s in the coming months.
• Expected to generate $528 million in annualized illustrative net cashflow. 1
• Financing Strategy: IREN will pause all further Bitcoin Mining expansion upon completion of its 52 EH/s buildout and intends to reinvest mining cashflows to support growth of its AI Cloud Services and AI Data Center businesses.

2. AI Cloud Services

• Operating 1,896 GPUs, including NVIDIA H100 and H200 hardware.
• Utilized GPUs generating annualized run-rate revenue of $26 million as of March 31, 2025.2
• Seeing increased engagement around large-scale AI cloud infrastructure opportunities, particularly for multi-thousand air-cooled Blackwell B200 GPU clusters hosted at IREN's Prince George data center following the release of DeepSeek.
• Financing Strategy: IREN is progressing GPU financing workstreams to support potential expansion, optimize capital efficiency and deliver attractive risk-adjusted returns.

3. AI Data Centers

• Horizon 1 (50MW IT load):
  • Capex of $300–$350 million, expected to be funded primarily through colocation customer prepayments and debt financing.
  • Initial discussions focused on 50MW of IT load have now evolved into colocation negotiations covering larger volumes of capacity with multiple potential customers.
  • To preserve execution speed and maintain IREN's time-to-market advantage, IREN has commenced placing long-lead equipment deposits for capacity beyond the initial 50MW.
• Sweetwater Data Center Hub (2GW power capacity):
  • Investment in substations and early-stage infrastructure to preserve IREN's time-to-power advantage.
  • Preparing the site to enable rapid commencement of data center construction upon finalization of a customer contract.
• Financing Strategy:
  • IREN remains focused on optimizing its capital structure to align with current market conditions.
    • Customer prepayments tied to contracted capacity commitments
    • Project-level and corporate debt instruments
    • Convertible notes
    • Asset-backed financing and leasing
    • Reinvestment of Bitcoin Mining and AI Cloud Service cashflows
  • Utilization of the existing ATM facility (with $111 million raised to date at an average share price of $11.07) provides a strategic capital backstop to complement the above sources.3
  • IREN believes there is strong institutional appetite for credit and infrastructure lending, even ahead of contracted revenue, supported by IREN's substantial real asset base, proven execution track record and robust cashflows generated from its existing Bitcoin Mining and AI Cloud Service businesses.