- Record FY‑2025 results: Iris Energy (IREN) generated US$501.0 m in revenue for FY‑2025, 168 % higher than FY‑2024 as both bitcoin mining and AI cloud revenues surged [1]. The company mined 5,499 BTC, up 31 % year‑on‑year, while the average price per bitcoin more than doubled to US$88.1k [2]. Net income reached US$86.9 m, reversing the prior‑year loss [3].
- Lean electricity costs and high margins: Iris uses 100 % renewable energy from long‑term contracts in Canada and the US. FY‑2025 net electricity cost was 3.8 c/kWh [4], contributing to a gross margin around 75 % and EBITDA margin ~65 % according to management’s commentary [5]. May 2025 data show that electricity cost per bitcoin mined was roughly US$27 k, while each bitcoin sold for around US$103 k, implying hardware margins near 74 % [6].
- 50 EH/s bitcoin mining platform: IREN rapidly expanded its self‑mining capacity to 50 EH/s by mid‑2025, a 400 % increase versus FY‑2024 [7]. The fleet’s efficiency stands around 15 J/TH, making it competitive with leading miners.
- Pivot to AI cloud services: Management is diverting capital from additional bitcoin mining sites to high‑margin AI cloud infrastructure. The company secured NVIDIA Preferred Partner status and, by September 2025, had ordered 23,000 GPUs, including B300, B200 and AMD MI350X chips [8] [9]. AI cloud revenues reached US$3.6 m in Q3 FY‑2025 and management aims for a US$500 m+ annual run‑rate by early 2026 [10].
- Healthy balance sheet: Iris reported US$184 m cash in Q3 FY‑2025 and secured US$96 m financing to purchase new GPUs [11] [12]. The firm has around 2.91 GW of power under control and operates 810 MW of data centres, giving it options to redeploy capacity [13].
- Sector headwinds: Following the April 2024 halving, the network hashrate climbed to ~894.5 EH/s by July 2025, doubling since mid‑2024 [14]. Research shows 854,400 kWh of electricity are now required to mine a single bitcoin and that the raw energy cost exceeds US$100 k for miners paying typical US grid rates [15] [16]. Only miners with access to energy below US$0.06/kWh can keep costs near US$34–51 k per BTC [17].
Iris Energy’s 2025 Performance
Financial Results
Iris Energy’s FY‑2025 results highlight how the company is transforming from a mid‑sized miner into a diversified digital‑infrastructure provider. Total revenue surged 168 % to US$501 m, driven by a 186 % jump in bitcoin mining revenue to US$484.6 m and a 430 % increase in AI cloud services revenue to US$16.4 m [18]. The company mined 5,499 BTC for the year, up from 4,195 in FY‑2024, thanks to a quadrupling of its hash rate to 25.7 EH/s and a bitcoin price that averaged US$88.1k [19].
Cost of revenue was US$159 m, mainly electricity, resulting in a gross margin over 70 % [20]. Operating expenses of US$324.7 m included depreciation and stock‑based compensation, yet the business still delivered EBITDA of US$278.2 m and net income of US$86.9 m [21]. Adjusted EBITDA grew 395 % to US$269.7 m [22].
Quarterly momentum
- Q3 FY‑2025: Revenue reached US$148.1 m, including US$141.2 m from bitcoin mining and US$3.6 m from AI cloud services. Adjusted EBITDA was US$83.3 m and profit after tax US$24.2 m, while the company held US$184.3 m cash [23]. Management said the 50 EH/s expansion is largely complete and future mining expansion will pause to prioritise AI infrastructure.
- Q2 FY‑2025: Mining revenue climbed 129 % YoY to US$113.5 m with 1,347 BTC mined, and Adjusted EBITDA was US$62.6 m [24]. The update described development of Horizon 1, a 75 MW liquid‑cooled AI data centre, and Sweetwater 2 (600 MW) at the company’s Texas campus [25].
- Monthly updates: May 2025 saw 627 BTC mined with revenue per BTC ~US$103 k and electricity cost per BTC US$27 k, yielding a hardware margin around 74 % [26]. AI cloud services generated US$2.2 m that month with roughly 98 % margin [27]. In Feb 2025 the operating hash rate was ~28–29 EH/s, monthly revenue ~US$44–52 m and electricity cost per BTC around US$24–28 k [28].
Strategic Initiatives and News
- GPU acquisitions and AI pivot: In August 2025 Iris announced it was an NVIDIA Preferred Partner and purchased 1.2 k B300 and 1.2 k GB300 GPUs for US$168 m, bringing its fleet to 10.9 k GPUs [29]. In September 2025 the firm doubled its AI cloud capacity to 23 k GPUs by ordering 7.1 k Nvidia B300, 4.2 k B200 and 1.1 k AMD MI350X GPUs for US$674 m [30]. Management raised its AI revenue target to US$500 m+ annualised by Q1 2026 [31].
- Liquid‑cooled data centres: The company is constructing Horizon 1, a 50 MW liquid‑cooled data centre at its Childress site, and Sweetwater 1 & 2 expansions (total 600 MW) to support the GPU fleet. A DataCenterDynamics report notes that IREN’s Prince George campus can support more than 60 k Blackwell GPUs [32]. The firm is redeploying older ASIC miners to other sites to maintain bitcoin capacity while shifting prime power capacity to AI [33].
- Power portfolio: IREN controls 2.91 GW of grid‑connected power and operates 810 MW of data‑centre capacity, all using renewable hydro or wind power [34]. This allows the company to offer low‑cost energy to both bitcoin miners and AI workloads.
Bitcoin Mining & Clean‑Energy Sector Analysis (2025)
Post‑halving economics
The April 2024 halving cut block rewards in half, forcing miners to double their efficiency to remain profitable. Research using July 2025 data shows the global network hashrate reached ~894.5 EH/s, nearly twice mid‑2024 levels [35]. Because block production remains constant, the energy required to mine one bitcoin increased eight‑fold to around 854,400 kWh, equivalent to 81 years of electricity for an average US home [36]. At average US commercial electricity prices of US$0.13/kWh, the energy cost per BTC exceeds US$111 k, meaning profits are wiped out for miners paying grid rates [37] [38]. Only miners with sub‑US$0.06/kWh power—often through long‑term contracts, stranded energy or demand‑response programmes—can mine at US$34–51 k per BTC, leaving healthy margins [39] [40].
Industry trends and headwinds
- Race for scale and efficiency: New ASIC machines such as Bitmain’s S21+ (16.5 J/TH) and MicroBT’s M66S+ (17 J/TH) push efficiency to new lows [41]. Operators are replacing old fleets and consolidating to survive. Smaller miners lacking cheap power are exiting, leading to industry concentration [42].
- Diversification beyond bitcoin: At the SALT conference, industry leaders noted that halving cycles matter less than access to cheap power and diversified revenue streams [43]. Firms like Iris Energy, Marathon and CleanSpark are using their infrastructure for AI and high‑performance computing, turning “bitcoin miners” into energy and data‑centre companies.
- Sustainability pressures: Regulators and investors increasingly scrutinize energy consumption and emissions. The US accounts for roughly 38 % of global hashrate, consuming about 63 GWh/day of electricity, or 53.2 TWh per year, comparable to the electricity used by all electric vehicles globally [44] [45]. Policies promoting renewable energy and demand‑response programs favour miners with flexible load and green sourcing.
- Financial volatility: Bitcoin price volatility remains a key risk. Many miners hold large BTC treasuries (e.g., Marathon holds ~50,000 BTC [46]), creating significant balance‑sheet exposure. Rising interest rates and limited access to capital markets could hinder expansion plans.
Competitor Comparison (as of Oct 3 2025)
| Company & Ticker | Market Cap (approx) | Self‑Mining Hashrate & Efficiency | Cost per BTC / Power Cost | 2025 Revenue & Profitability | Notes & Initiatives |
|---|---|---|---|---|---|
| Iris Energy (IREN) | ~US$12.8 B [47] | 50 EH/s by mid‑2025 [48]; fleet efficiency ~15 J/TH (liquid‑cooled expansions). | Electricity cost ~3.8 c/kWh [49]; May 2025 cost per BTC ~US$27 k [50]. | FY‑2025 revenue US$501 m and net income US$86.9 m [51]; EBITDA US$278 m [52]. | Pivoting toward AI cloud services with 23 k GPUs ordered and >US$500 m annualised AI revenue target [53] [54]. Uses 100 % renewable energy. |
| Marathon Digital (MARA) | ~US$6.97 B [55] | Q2 2025 energised hash rate 57.4 EH/s and produced 2,358 BTC [56]. Planning expansion via convertible notes and wind power integration. | Not disclosed; Finimize notes Marathon aims to reduce power bills by 20–30 % through wind and behind‑the‑meter data centres [57]. | Q2 2025 revenue US$238.5 m (up 64 %) and net income US$808 m (driven by mark‑to‑market gains); holds ~50k BTC worth US$5.3 b [58]. | Highly leveraged; raised US$950 m convertible notes; exploring renewable projects. |
| Riot Platforms (RIOT) | ~US$7.18 B [59] | Q2 2025 self‑mining hash rate 35.4 EH/s; fleet efficiency 21.2 J/TH; produced 1,426 BTC [60]. | All‑in power cost 3.5 c/kWh and hash cost US$25.4/PH/s/day; cost to mine US$48,992 per BTC, of which US$37,767 is power [61]. | Q2 2025 revenue US$153 m (US$141 m from mining) and net income US$219.5 m, including large unrealized gains [62]. Adjusted EBITDA US$495 m [63]. | Exited hosting business; focusing on self‑mining with long‑term power purchase in Texas. |
| CleanSpark (CLSK) | ~US$4.48 B [64] | Operational hash rate 50 EH/s with fleet efficiency 16.07 J/TH; ~241k miners deployed [65]. | Does not publicly disclose cost per BTC; monthly update shows sold BTC at US$113.8k with energy under contract 1.03 GW and utilised 808 MW, implying low power cost [66]. | Q3 FY‑2025 revenue US$198.6 m, cost of revenue US$90.1 m, net income US$257.4 m and adjusted EBITDA US$377.7 m [67]. | Leading miner to reach 50 EH/s; emphasises vertical integration and energy contracts. |
| Hut 8 (HUT) | ~US$4.23 B [68] | Q2 2025 results emphasised energy management; the company manages 1,020 MW of power capacity with a 10,800 MW development pipeline [69]. Production metrics for 2025 not provided. | Not disclosed; Hut 8 positions itself as an energy‑infrastructure and HPC provider rather than pure miner. | Q2 2025 revenue US$41.3 m, net income US$137.5 m and adjusted EBITDA US$221.2 m [70]. | Building data‑centre and power‑generation businesses; launching American Bitcoin, a separate subsidiary for digital infrastructure [71]. |
Forward‑Looking Outlook & Analyst Forecasts
Analysts are generally optimistic about Iris Energy, though opinions diverge on valuation. GuruFocus noted that after FY‑2025 results, the average one‑year price target was around US$21.70 and brokerage ratings averaged 1.9 (Outperform) [72]. Some analysts subsequently raised targets as the stock climbed over 560 % in the year to Oct 3 2025, with Bernstein boosting its target to US$75 and Roth/MKM to US$82, while JPMorgan downgraded to Underweight with a US$24 target due to valuation concerns [73].
Looking ahead, the company expects its 50 EH/s mining platform to generate roughly US$1 b of annualised bitcoin revenue at current prices. With the AI cloud business targeting US$500 m+ in annualised revenue by early 2026 [74], Iris could become a diversified digital‑infrastructure business rather than a pure miner. Management believes its 3.8 c/kWh renewable power and liquid‑cooled data centres will sustain high margins even as network difficulty rises [75]. However, execution risks include delays in GPU deployment, competition from hyperscale cloud providers and volatility in bitcoin prices. The 2024 halving has raised the bar for efficiency, and only miners with the lowest power costs and diversified revenue are likely to thrive [76].
Expert Commentary
At the 2025 SALT conference, miners discussed how the sector is evolving from a pure bitcoin play into a power‑infrastructure business. IREN CFO Kent Draper explained that the company’s 50 EH/s platform is generating a US$1 b run rate with 75 % gross margin and 65 % EBITDA margin; because of this profitability, Iris will pause further mining expansion and focus on AI opportunities [77]. CleanSpark’s CEO Matt Schultz said they no longer talk about bitcoin mining but monetising megawatts by selling power to the grid or providing compute for AI [78]. This shift underscores how miners are becoming energy providers and data‑centre operators. Analysts caution that while AI provides a second engine of growth, it requires substantial capital and faces competition from hyperscale cloud providers [79]. Investor discussions echo this divide: some see Iris Energy’s Nvidia partnership and 228 % revenue surge as catalysts, while others worry about rising electricity costs and GPU installation delays [80].
Conclusion
Iris Energy’s 2025 performance illustrates how a bitcoin miner can evolve into a diversified clean‑energy and AI infrastructure company. By securing cheap renewable power and leveraging liquid‑cooled data centres, the company achieved record revenue and profits while maintaining some of the lowest costs per bitcoin in the sector. Its aggressive pivot toward AI cloud services positions it for significant non‑bitcoin revenue, though execution risk and capital intensity remain. Against a backdrop of rising network difficulty and energy costs, investors should weigh Iris’s dual growth engines and strong margins against valuation concerns and macro volatility. With the halving era demanding efficiency and diversification, Iris Energy’s strategy of “mining the megawatt” could prove decisive in determining whether it outshines its peers in 2026 and beyond.
In summary, the report highlights Iris Energy’s substantial revenue and net income growth in FY25, driven by both its Bitcoin mining operations and its strategic expansion into AI cloud services [81]. It underscores the company’s strong financial performance, low electricity costs, and decisive moves toward AI infrastructure, positioning it as a dual-engine growth story. The document also offers a sector-wide perspective, noting the challenges of the Bitcoin mining industry post-halving—including rising power costs and increased network difficulty—and compares Iris Energy with key competitors like Marathon Digital, Riot Platforms, CleanSpark, and Hut 8 [82]. Finally, it discusses future prospects, including analysts’ varying price targets and the emerging trend of diversified revenue streams through AI and data-center ventures, offering investors a balanced view of the company’s potential and risks in a rapidly evolving market.
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