@drew1618t I’m planning to do a deep dive on this company soon with a write up + video. IREN has better unit economics than any bitcoiner miner. They are also beginning in the high performance compute field with vastly better unit economics than Nebius or Coreweave. Additionally, they are bringing on significantly more mega-wattage capacity than NBIS or CRWV.
- IREN produces a bitcoin for 41k right now, next best is MARA at 62k, all the other miners are significantly higher
- 650 MW of energy is generating 50 exa-hash of Bitcoin mining capacity, to put this in context NBIS’ entire operation is 220 MW currently
- Company is mining 6% of the global bitcoin, with the network having 850 exa-hash
- The company has intentionally paused adding more bitcoin mining capacity to build HPC
- That Bitcoin operation at the run-rate and assuming a 95k priced bitcoin gets 588M in annual EBITDA, and the price of Bitcoin has been much higher than 95k this quarter
- The money from mining is being used to finance HPC data centers
- Their HPC runs at 97-98% margin because they have by far the lowest electricity cost of anyone
- They are building the data centers themselves through renewables, own the land, and have great contracts with engineering to setup every step of the way
- Capacity is going to 2900 MW over the coming years, meanwhile Nebius has vague plans to get up to 1,000 MW, CoreWeave has long term plans to get to 1600 MW
- Currently the company has 2400 Blackwells (1300 B200s, 1100 B300s) which are coming online at their British Columbia campus and only uses 50 MW to setup all those Blackwells. It means the remaining capacity they are setting up for an additional ~2300 MW is all going to HPC or can support over 100k Blackwells
- Latest earnings, “delivering 50 megawatts every month of data centers”, again keeping in mind Nebius is at 220 MW, they are bringing online about 1/4th the total volume of electricity that Nebius has total in a given month
- “We see more compelling shareholder value creation in AI infrastructure, and want to be disciplined in capital allocation”
- “1400 megawatts at Sweetwater 1 is on track for energization in less than a year now in April 2026”
It’s worth noting that much of their CapEx spend up till this point has come from either debt or dilution. Now that they are very profitable they’ve said everything from here will be funded from cash from operations on the mining. That 650 MW online is expected to stay connected to Bitcoin mining for now. However, as they scale up HPC and get revenue from that the longer term plans seems to be to switch entirely to HPC. They are building the data centers to be able to swap between Bitcoin mining and HPC as they market demand dictates.
This is one of those companies where the more I learn, the more I like. Just 144 employees right now, founded out of Australia but it’s switched to US filing under Nasdaq recently. They are hugely profitable right now before even getting started in HPC and that provides a nice base to expand from as they scale up. It is now a top conviction position for me already, and I will have some more thoughts on the company soon.