TLDR:
- Iren reported Q1 2025 losses of $51.7M, wider than expected, with mining revenue down 8% to $49.6M
- Company is accelerating expansion to 50 EH/s hash rate in first half of 2025
- AI cloud services revenue grew 28% to $3.2M with 1,896 Nvidia GPUs installed
- Stock received price target increases from analysts despite earnings miss
- Cash position strong at $182.4M as of October 2024 with no debt
Bitcoin mining company Iren saw its stock surge 20% in early Wednesday trading despite reporting wider-than-expected losses, as investors focused on the company’s accelerated growth plans and positive analyst reactions.
The company, previously known as Iris Energy, reported a first-quarter 2025 loss of $51.7 million, larger than the $27.1 million loss in the previous period. The results missed analyst expectations, which had projected a $14.5 million loss according to FactSet data.
Mining revenue declined 8% to $49.6 million during the quarter, impacted by increased mining difficulty and lower bitcoin prices. The company mined 813 bitcoin in the period, slightly down from 821 bitcoin in the previous quarter, falling short of analyst expectations for $55.3 million in mining revenue.
In a bright spot for the quarter, Iren’s AI cloud services division posted revenue growth of 28%, reaching $3.2 million. This growth was attributed to additional GPU installations completed in April. The company currently has 1,896 Nvidia H100 and H200 GPUs installed and reports ongoing customer contracting efforts.
The company maintains a strong financial position with $98.6 million in cash as of September 30, 2024, which increased to $182.4 million by October 31, 2024. Notably, Iren operates with no debt, maintaining total assets of $1.3 billion and total equity of $1.1 billion.
A key highlight from the earnings report was Iren’s accelerated timeline for expanding its bitcoin mining capacity. The company now expects to reach 50 exahash per second (EH/s) in the first half of 2025, moved up from its previous target of the second half of the year. Current capacity stands at approximately 31 EH/s for 2024.
The company’s production costs remain competitive, with a reported cost of $29,000 per bitcoin. This positions Iren as one of the lower-cost producers in the industry, particularly important given bitcoin’s current price levels above $90,000.
Wall Street analysts responded positively to the results despite the earnings miss. H.C. Wainwright raised its price target on Iren to $16 from $13, maintaining a buy rating. The firm highlighted Iren’s position to become one of the first public bitcoin miners to achieve 50 EH/s.
Canaccord also increased its price target by $2 to $17, citing Iren’s competitive power costs and the favorable bitcoin price environment. The firm maintained its buy rating on the stock.
On the operational front, Iren emphasized its measured approach to growth in the AI cloud business, stating it would expand only in response to customer demand. The company continues to focus on renewable energy, purchasing certificates for all its operations.
The stock movement spread across the sector, with other bitcoin miners including Mara Holdings, Hive Digital, and CleanSpark all trading higher by more than 4% in early Wednesday trading.
Bitcoin prices showed resilience during the period, trading near $94,500 Wednesday morning after briefly dipping to $90,784 on Tuesday. The cryptocurrency recently reached a record high of $99,768 following the U.S. elections but has faced resistance at the $100,000 level.
Iren’s quarterly net electricity costs totaled $28.7 million, with the company noting some impact from the transition to spot pricing for energy procurement at its Childress site.
The company continues to explore various funding instruments to support its growth plans, including potential convertible options, as it works to reduce reliance on equity financing.
Looking ahead, Iren faces both opportunities and challenges as it executes its accelerated growth strategy in an evolving market environment. The company’s latest earnings report showed mixed results but demonstrated progress on key strategic initiatives.
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