IREN is gradually emerging from the shadow of a "Bitcoin miner" to rise as a new digital infrastructure force in the AI era.
Bitcoin Mining Company IREN raises 450 million USD in convertible bonds. Photo: Hunter
IREN – a mining company previously known as Iris Energy – announced raising 450 million USD through convertible bonds maturing in 2030. With an interest rate of only 3.25% per year, the deal was closed at 440 million USD. Previously, the company had proposed issuing 450 million USD, which could be expanded by an additional 50 million, with a maturity date of 15/12/2029.
The capital will be allocated to multiple categories. Part will be used for capped call transactions to limit share dilution from convertible bonds. Meanwhile, IREN is implementing a share repurchase agreement worth up to 100 million USD to support stock price and provide investor hedging. The remainder will be used to expand AI data centers, increase working capital, and make long-term investments.
It is no coincidence that IREN attracts significant capital at a time when many Web3 companies are still struggling with the AI wave. The company is operating data centers spanning over 2,000 acres in the US and Canada, with a total connected capacity of 2,910 MW.
IREN's three strategic pillars include Bitcoin mining, AI cloud services, and operating specialized AI data centers. In the Bitcoin segment, the company is operating a system with a capacity of around 38-41 EH/s, targeting 50-52 EH/s by mid-2025. However, after reaching this threshold, IREN will stop expanding Bitcoin mining to focus entirely on the AI segment.
In the AI cloud segment, IREN owns a GPU fleet of nearly 1,900 Nvidia H100 and H200 chips, which are considered "white gold" in the AI industry. Revenue from this segment reaches 3.6 million USD per quarter, with hardware profit margins up to 95-98%.
Beyond cloud services, IREN is also building a large-scale AI infrastructure ecosystem. The Horizon 1 data center with 50 MW capacity will be operational in the second half of 2025, while the Sweetwater Hub project in Texas - with ambitions to reach 2 GW capacity - is being implemented and expected to be operational from 2026. If completed on schedule, Sweetwater will become one of the largest AI infrastructure complexes in North America.
Financially, IREN is showing stable growth performance and sustainable profitability. In the third quarter of fiscal year 2025 (ending March 31), the company recorded revenue of 148.1 million USD, a 24% increase from the previous quarter. Net profit reached 24.2 million USD, a 28% increase. Hardware profit margin in the Bitcoin segment is around 24%, while the AI cloud segment is higher at 33%. The company currently holds 184 million USD in cash, and with the recently completed bond transaction, has nearly secured the 250 million USD in capital needed for 2025.
$IREN today reported its Q3 FY25 results.
— IREN (@IREN_Ltd) May 15, 2025
Key highlights:
- Consecutive quarters of Profit After Tax
- Record Revenue of $148.1m
- Record Adj. EBITDA of $83.3m
- Record EBITDA of $82.7m
- Profit After Tax of $24.2m
- All-in cash cost per Bitcoin mined of $41k
- Avg. operating… pic.twitter.com/s3vXYd6y2E
However, IREN's stock is still being cautiously valued by the market. At the end of yesterday's trading session (10/06), the stock price reached 10.49 USD, a slight increase of 1.45% in the session and nearly flat over the past year with a modest 1.75% increase.
IREN stock price movement over the past year. Image: Google Finance (11/06/2025)
Before transitioning to the IREN identity and shifting towards AI infrastructure, Iris Energy had gone through a severe liquidation crisis in late 2022. The company received a default notice from Bitmain related to three equipment loan totaling 104 million USD, secured by a mining system with a total mining speed of only about 3.8 EH/s. With just 53 million USD in cash and mining revenue of around 8.7 million USD/month, the company revealed their gross profit was only 2 million USD, lower than the 7 million USD monthly debt obligation.
Compiled by Coin68
