IREN's Q1 FY25 results reveal shift in mining & AI focus

IREN has announced its first-quarter financial results for the fiscal year 2025, highlighting considerable developments in its Bitcoin mining and AI cloud services operations.

Daniel Roberts, Co-Founder and Co-CEO of IREN, stated, "We are pleased to report our Q1 FY25 results and reiterate our focus on low-cost Bitcoin mining, operating cashflows and shareholder returns. We are just weeks away from achieving our 31 EH/s milestone and are excited to announce the acceleration of our growth trajectory to 50 EH/s in H1 2025, which was previously H2 2025. Our funding program is focused on alternative funding instruments and the strong operating cashflows we expect to generate enhances our flexibility to support potential distributions in 2025."

As it transitions to a U.S. domestic issuer status next year, IREN reported Bitcoin mining revenue of USD $49.6 million in Q1 FY25, a decrease from USD $54.3 million in the previous quarter. This decrease is attributed to increased network difficulty and lower Bitcoin prices despite a rise in the operating hash rate. Meanwhile, AI cloud services revenue increased by 28% to USD $3.2 million following the commissioning of additional GPUs in April 2024.

The net loss after income tax stood at USD $51.7 million, widening from USD $27.1 million in the prior quarter. The company reported net electricity costs of USD $28.7 million in Q1 FY25, up from USD $24.1 million in Q4 FY24, driven mainly by increased operating capacity.

In its business update, IREN reported having 21 EH/s installed mining power and plans to achieve 31 EH/s next month, with a further expansion to 50 EH/s by the first half of 2025. The company's Childress site is to see a single-site expansion, with S21 Pro miners secured at a fixed price.

IREN continues to focus on utilising 100% renewable energy, contributing to energy grids and supporting local communities. The company employs a non-HODL approach and remains committed to prudent capital stewardship through the economic cycle.

An update on AI and high-performance computing services outlined that IREN now operates 1,896 NVIDIA H100 and H200 GPUs, with a measured growth strategy, responding only to customer demand. Additionally, plans to install liquid cooling infrastructure at the Childress and Prince George sites to support NVIDIA Blackwell GPUs were confirmed.

Regarding power and land, IREN is pushing forward with procurement plans at its 1.4GW Sweetwater site in Texas, supporting a substation energisation target by April 2026. The company continues to prioritise the development of its over 1GW pipeline.

The first quarter financials revealed an Adjusted EBITDA of USD $2.6 million, a notable decrease from USD $12.2 million in Q4 FY24. The results reflect IREN's focus on expanding its operational reach in Bitcoin mining and AI services.

With an eye on future growth, IREN maintains operating solid cash flows. It expects these to support potential investor distributions in 2025, aligning with its strategic focus on alternate funding instruments and capital stewardship.