IREN controls the largest operational-plus-contracted power position we track — 4.2 GW — and the market has already begun re-rating it from Bitcoin miner to AI landlord. From here it is an execution story: converting 3.4 GW of contracted power into operational, billing megawatts, and delivering on $13B+ of Microsoft and NVIDIA compute contracts.
01
Overview
IREN Limited (formerly Iris Energy) is a Nasdaq-listed operator that built one of the largest contracted power positions in the sector to mine Bitcoin, and is now converting that power and those sites into AI data-center capacity and a vertically integrated AI cloud (IREN Cloud).
Its footprint spans West Texas and British Columbia, with secured grid capacity now extending to Spain (Nostrum) and South Australia (Bundey). Power is largely owned and low-cost, secured through grid-connection agreements signed years before the AI build-out made them valuable. IREN became a domestic U.S. filer (10-K/10-Q) on July 1, 2025.
02
Market Thesis
The scarce asset is firm, energized power near fiber — and IREN owns more of its megawatt than almost anyone in the coverage universe, giving it a low cost per megawatt and most of the upside on its own balance sheet. The market has noticed: the stock has re-rated well off its miner-era multiple.
The story from here is execution, not discovery. Value turns on converting 3.4 GW of contracted power into operational, energized capacity on schedule, and on delivering the Microsoft ($9.7B) and NVIDIA ($3.4B) compute contracts — against heavy convertible-note leverage and reliance on at-the-market equity issuance to fund the build.
KEY DATA
Price$47.21
Market cap$16.8B
Total GW5.8 GW
Operational0.81 GW
Contracted3.39 GW
Announced1.60 GW
Val / GW$2.9B
COVERAGE
Analyst · Every Megawatt Initiated · Jun 2026 Stance · Power-Long
IREN owns its grid substations and land, builds the data centers, and runs its own compute layer (IREN Cloud, hardened by the May 2026 Mirantis acquisition) — full vertical integration from power to platform. The ~15-point gap from a pure software neocloud reflects the capital intensity of owning physical real estate and power.
OWNS POWER · LANDSELLS COMPUTE · NEOCLOUD
04
Power Position
Operational · energized0.81 GW
Contracted · not operational3.39 GW
Announced · pipeline1.60 GW
Operational power is energized and earning today. Secured is grid-secured or under construction — not yet drawing load. Announced is pipeline — committed sites and stated intent. The gap between them is where the risk, and the re-rating, live.
05
Financials
LINE ITEM
VALUE
PERIOD
Revenue$501MFY25
Adj. EBITDA$270MFY25
Net income$87MFY25
Cash & equivalents$2.2BQ3-26
Total debt$3.7BQ3-26
Net cash$(1.5)BQ3-26
Illustrative figures — auto-populated from latest SEC filings. Verify before relying.
Substation energization timing: forward ARR depends on grid energization matching GPU deliveries; transmission or construction delays leave expensive clusters idle.
Customer concentration: the bulk of contracted ARR sits with two counterparties — Microsoft and NVIDIA — so any dispute or handoff delay compromises cash flow.
Leverage and dilution: ~$3.7B of convertible notes plus reliance on a $6.0B at-the-market equity program to fund GPU purchase commitments.
Bitcoin exposure: legacy mining still funds part of the transition; BTC price or hashrate swings pressure liquidity and drive non-cash mining-hardware impairments.
Hardware obsolescence and execution: short GPU lifecycles and complex liquid-cooled operations pressure pricing power and carry contractual uptime penalties.
IREN's first European footprint. The deal adds 490 MW of grid-connected capacity to the contracted tier, diversifying the power base beyond West Texas and British Columbia.
Secured against the GPUs and the Microsoft cash flows at a ~6.0% blended cost, the facility de-risks the hardware capex for the Childress Horizons build.
IREN completed an upsized $3 billion convertible senior notes offering to fund GPU and data-center expansion tied to its NVIDIA and Microsoft contracts.
IREN priced an upsized $2.6 billion convertible note offering at a 1% coupon and 32.5% conversion premium (~$73.07), paired with capped calls, to fund growth.
IREN signed a 5-year ~$3.4B managed GPU cloud deal with NVIDIA using air-cooled Blackwell at Childress and granted NVIDIA a right to buy up to 30M shares at $70, with a 5GW infrastructure partnership.
Quarter ended March 31, 2026 showed revenue of $144.8M and a $247.8M net loss as IREN shifts from Bitcoin mining to AI cloud, with $3.1B ARR under contract.
IREN connected its Sweetwater 1 high-voltage substation to ERCOT, a key milestone toward its planned 2GW West Texas AI campus; shares jumped ~11%.
DISCLAIMER
This report is produced by Every Megawatt for informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any security. Figures are illustrative and auto-generated from public filings; they may be incomplete or inaccurate and should be independently verified. Every Megawatt makes no warranty as to accuracy and accepts no liability for any use of this material.