Iris Energy Limited (IREN): Business Model Canvas [Dec-2025 Updated]

You're digging into the mechanics of a successful infrastructure pivot, and Iris Energy Limited's model is a masterclass in balancing two massive digital demands. Honestly, seeing them hit $501.0 million in FY25 revenue by running a dual-engine platform-blending Bitcoin mining with high-margin AI Cloud Services-tells you they've nailed the resource game. Their secret sauce, which we break down below, is securing 2,910 MW of contracted power, often at that industry-low $0.033 per kWh, which is the bedrock for their 810 MW of operational capacity. If you want to see precisely how they structure their key activities and revenue streams to support this growth, you need to look at the full canvas right here.

Iris Energy Limited (IREN) - Canvas Business Model: Key Partnerships

The Key Partnerships for IREN Limited as of late 2025 are centered on securing high-performance compute hardware, reliable renewable power, and capital to fund expansion.

NVIDIA Preferred Partner status for GPU procurement

• IREN Limited secured NVIDIA Preferred Partner status in August 2025.
• This status grants direct access to the latest technologies and favorable purchasing conditions.
• On August 28, 2025, IREN procured an additional 1.2k air-cooled NVIDIA B300s and 1.2k liquid-cooled NVIDIA GB300s for approximately $168m.
• This brought the total GPU fleet to approximately 10.9k NVIDIA GPUs.
• The total fleet expected to be in operation by the end of 2025 is approximately 23,000 GPUs.
• The company sources GPUs through third parties for certain projects; for instance, GPUs for the Microsoft project are sourced through Dell Technologies (DELL).

Leading Engineering, Procurement, and Construction (EPC) contractors

While specific EPC contractor names aren't detailed, the partnership structure is evident through major infrastructure development milestones:

Financing partners for GPU hardware leases

• IREN secured approximately $96m in financing to support the purchase of the GB300s.
• This financing is structured as a 24-month lease representing 100% of the purchase price.
• Lease payments are calculated utilizing a high single digit interest rate.
• The B300 GPUs were funded from existing cash.
• The capital strategy for AI opportunities prioritizes customer prepayments and a range of debt financing solutions.

Utility providers for long-term Power Purchase Agreements (PPAs)

The foundation of IREN Limited's operations is its access to power, secured through grid-connected agreements:

• The company has secured 2,910MW of grid-connected power across over 2,000 acres in the U.S. and Canada.
• In March 2025, a new 600MW grid connection agreement was signed, bringing total secured power capacity in West Texas to 2.75GW.
• The company utilizes a low power price, such as the 2.9c/kWh Childress power price mentioned in an illustrative context.
• The total secured power capacity is scalable to three gigawatts (3GW), which is only 16% of the capacity needed for the fully deployed 140,000 GPU fleet.

Bitcoin mining pools for block reward distribution

• IREN operates about 50 EH/s of installed self-mining BTC capacity as of October 2025.
• Illustrative calculations for net cashflow assume 0.13% pool fees.

Iris Energy Limited (IREN) - Canvas Business Model: Key Activities

Developing and constructing large-scale, renewable-powered data centers

• Secured 2,910MW of grid-connected power across over 2,000 acres in the U.S. and Canada as of FY2025.
• Operating data center capacity increased to 810MW by the end of Fiscal Year 2025.
• The 1.4GW Sweetwater 1 substation project is slated for energization in April 2026.
• Planning and site works ongoing for Horizon 2 and beyond at the Childress site.

Operating Bitcoin mining fleet at 50 EH/s capacity

Iris Energy Limited (IREN) achieved its target of 50 EH/s capacity in Fiscal Year 2025. The company announced a pause on further Bitcoin mining expansion upon reaching approximately 52 EH/s to prioritize AI Cloud services. The average operating hashrate in August 2025 was reported at 44.0 EH/s, mining 668 BTC.

Providing High-Performance Computing (HPC) and AI Cloud Services

The AI Cloud segment is a primary focus, with the company targeting more than $500m in AI Cloud annualized run-rate revenue (ARR) by the end of Q1 2026. By December 2025, the target for annualized revenue was $200-250 million. The hardware profit margin for AI Cloud Services consistently sits around 98%.

Managing power grid participation (e.g., demand response programs)

• Electricity cost at the Childress site was reported at 3.2 cents/kWh in December 2024.
• The company secured an additional 600MW of grid-connected capacity in March 2025.
• This brought the total secured power capacity in West Texas to 2.75GW as of March 2025.
• Low power costs are a structural advantage, evidenced by a hardware profit margin of 76% for Bitcoin mining in July 2025.

Procuring and deploying advanced liquid-cooled GPU infrastructure

Iris Energy Limited (IREN) secured NVIDIA Preferred Partner status in 2025. The company is implementing direct-to-chip closed-loop liquid cooling systems in existing data centers to support these advanced GPUs. The 50MW Horizon 1 liquid-cooled AI data center in Childress, Texas, is on track for Q4 2025 delivery.

For example, the procurement of an additional 12.4k GPUs, including NVIDIA B200s, B300s, and AMD MI350Xs, was for approximately $674 million. The initial delivery of 256 B200 GPUs was completed and fully contracted as of July 2025.

Iris Energy Limited (IREN) - Canvas Business Model: Key Resources

You're assessing the core assets Iris Energy Limited (IREN) relies on to power its dual-engine strategy across Bitcoin mining and AI Cloud Services. These resources are the foundation for their Infrastructure as a Service (IaaS) model, which centers on owning and operating the entire technology stack.

The physical and intellectual assets underpinning IREN's operations are substantial, reflecting an aggressive build-out throughout 2025. The company's commitment to 100% renewable energy sources, primarily hydro power, is a defining characteristic of this resource base, offering a structural cost advantage. For instance, the electricity cost at Childress was reported at 3.06 c/kWh in October 2024, a figure that anchors their low-cost proposition.

The scale of their power and facility commitments is best summarized by their secured capacity:

• 2,910 MW of contracted grid-connected power capacity secured across the U.S. and Canada.
• 810 MW of operational data center capacity, which more than tripled in scale during the fiscal year ending June 30, 2025.

The computational hardware, essential for the high-margin AI Cloud segment, has seen massive recent investment. While the required outline specifies a figure, the latest reported fleet size shows significant growth:

• Fleet of 10,900 NVIDIA GPUs (on track by Dec 2025)

To be fair, the September 2025 announcement indicated the fleet had already doubled to approximately 23,000 GPUs following a $674 million procurement, which included NVIDIA B300s, B200s, and AMD MI350Xs. This expansion is aimed at supporting a target of more than $500 million in AI Cloud annualized run-rate revenue (ARR) by the end of Q1 2026.

The operational expertise is as critical as the physical hardware. IREN's vertically integrated approach means they control the build-out, which is a key differentiator from peers relying heavily on third parties. This is supported by:

• Vertically integrated data center design and engineering team

This team manages the development of specialized, power-dense facilities, such as the 50MW liquid-cooled AI data center, Horizon 1, which was on track for Q4 2025 energization.

The resource base is fundamentally tied to sustainable power, which is a key selling point for ESG-conscious AI customers. Here's a quick look at the energy and financial scale:

Also, IREN has secured NVIDIA Preferred Partner status, which is a significant non-tangible resource that helps facilitate customer expansion and hardware procurement.

The company's physical footprint includes six data centers across North America, with sites in British Columbia (Prince George, Mackenzie, Canal Flats) and Texas (Childress, Sweetwater). This multi-site deployment helps mitigate risk and supports workload flexibility between mining and AI compute. If onboarding takes 14+ days longer than scheduled for a major cluster, customer contract value realization is definitely at risk.

Finance: draft 13-week cash view by Friday.

Iris Energy Limited (IREN) - Canvas Business Model: Value Propositions

You're looking at the core reasons why Iris Energy Limited (IREN) is attracting capital right now, and it boils down to two things: clean power and dual-use infrastructure. Honestly, the value proposition isn't just about mining Bitcoin anymore; it's about being a foundational digital infrastructure provider for the AI boom, all while maintaining a low-cost structure.

The primary value proposition is sustainable computing powered by 100% renewable energy. This isn't just for show; it's a financial strategy that underpins their low operating costs. As of late 2025, IREN has secured a massive foundation of 2,910 MW of contracted, grid-connected power capacity across the U.S. and Canada, which is a huge competitive moat in a power-constrained environment.

This clean energy access translates directly into a cost advantage, offering an industry-low average electricity cost of approximately $0.033 per kWh, with specific sites like Childress reporting costs around $0.03/kWh or even 2.9c/kWh in June 2025. This low cost is the engine driving high profitability across both business lines.

The business model is built on a dual-engine platform for Bitcoin mining and high-margin AI Cloud Services. This diversification allows IREN to capture value from two of the most demanding digital asset sectors. For fiscal year 2025, the company reported record total revenue of $501 million. The AI segment is scaling rapidly, with customer contracts covering 11,000 GPUs for an annualized recurring revenue (ARR) of $225 million by the end of 2025. Furthermore, a major multi-year AI cloud arrangement with Microsoft is expected to generate $1.9 billion in annual recurring revenue.

To support the power-dense AI workloads, IREN is deploying scalable, liquid-cooled data centers. The 50MW Horizon 1 liquid-cooled AI data center is on track for delivery in the fourth quarter of 2025. This infrastructure is designed to accommodate the latest generation of GPUs, like the NVIDIA Blackwell series that IREN has procured.

The operational efficiency across the board is clear when you look at the margins. For Bitcoin mining, the hardware profit margin has been consistently strong, hitting nearly 77% in December 2024, and remaining at 76% in July 2025. The AI Cloud Services segment shows even better unit economics, reporting a hardware profit margin near 98% in recent months.

Here's a quick look at the comparative efficiency and scale:

The value proposition is further supported by the company's strategic positioning:

• Secured 2,910 MW of grid-connected power capacity.
• Achieved NVIDIA Preferred Partner status.
• Bitcoin mining expansion paused at 50 EH/s to prioritize AI build-out.
• FY2025 net income of $86.9 million on $501 million revenue.
• AI Cloud annualized run-rate revenue targeting $500 million by Q1 2026.

Finance: draft 13-week cash view by Friday.

Iris Energy Limited (IREN) - Canvas Business Model: Customer Relationships

You're looking at how Iris Energy Limited (IREN) manages its distinct customer bases, which is a crucial pivot point for the company right now. They aren't just a crypto miner anymore; they are running a dual-engine business, and the relationship management reflects that split.

Dedicated sales and technical support for AI Cloud enterprise contracts

For the high-value AI Cloud segment, the relationship is clearly high-touch. This involves dedicated sales and technical support because you're dealing with enterprise-level machine learning and High-Performance Computing (HPC) workloads. These clients need assurance on performance, especially with cutting-edge hardware like the NVIDIA Blackwell GPUs they are deploying. The company secured NVIDIA Preferred Partner status in August 2025, which definitely helps grease the wheels for these complex technical sales.

The commitment here is substantial, as new NVIDIA Blackwell GPUs are being contracted ahead of delivery on an average term of 2 years, which supports a ~2-year revenue payback. This long-term commitment necessitates a dedicated support structure to ensure client success and retention.

Direct, long-term contracts with U.S.-based AI cloud providers

The core of the AI relationship strategy is locking in long-term, direct contracts. IREN is actively engaging with prospective customers through site tours and technical diligence, which is standard for large compute deals. These deals are with what they call 'leading AI companies.'

Here's the quick math on the current contracted base as of late 2025:

What this estimate hides is the geographic focus; these facilities are strategically located across the U.S. and Canada, with Horizon 1 & 2 in Childress, Texas, being key to this U.S. presence. IREN's total secured power and land portfolio stands at 2,910MW across over 2,000 acres in these regions, offering significant room for future contract expansion.

Transactional, automated relationship with Bitcoin mining pool participants

For the Bitcoin mining side, the relationship is far more transactional and automated. These participants are essentially renting hash power or using IREN's infrastructure to mine, which is a high-volume, lower-touch interaction compared to the AI contracts. The relationship is governed by the efficiency of the operation and the cost of power. IREN's installed self-mining Bitcoin capacity is about 50 EH/s, placing them among the largest miners by fleet utilization. For context, their Bitcoin mining revenue was approximately $141.2 million in Q3 FY25, while total FY25 revenue hit a record $501.0 million. The operational metric that matters most to these participants is uptime and cost; IREN maintains industry-leading low power costs, with prices at key sites under 3.5 c/kWh.

Investor relations for ESG-focused institutional capital

The third relationship track is with capital providers, where the Environmental, Social, and Governance (ESG) narrative is central. IREN's commitment to powering all data centers with 100% renewable energy via long-term Power Purchase Agreements (PPAs) is the key selling point here. This allows them to offer investors ESG-aligned exposure to both digital assets and clean compute trends. The engagement with institutional capital was active in 2025.

Institutional investor activity in Q2 2025 showed a clear interest:

• 148 institutional investors added shares to their portfolio.
• 115 institutional investors decreased their positions.
• FMR LLC made a notable addition of 8,647,252 shares in Q2 2025.
• This FMR addition represented a massive +32777.1% increase in their position.

The company's strong fiscal year 2025 results, including a net income of $86.9 million and Adjusted EBITDA of $269.7 million, are the core data points used to engage this capital base. Finance: draft 13-week cash view by Friday.

Iris Energy Limited (IREN) - Canvas Business Model: Channels

Proprietary, vertically integrated data center sites (e.g., Childress, Sweetwater)

• Operates six data centers across North America: three in Texas and three in British Columbia, Canada.
• Total operating data center capacity reached 810 MW as of the end of Fiscal Year 2025.
• Secured grid-connected power capacity increased to 2,910 MW (nearly 3 GW).
• The Childress facility has a 750-megawatt capacity.
• Power cost at Childress was reported at 3.2 cents/kWh in December 2024, and $0.035 per kilowatt hour in Q4 FY25.
• The Horizon 1 liquid-cooled AI data center at Childress is a 50 MW IT load site, scheduled for deployment in Q4 2025.

Direct sales and business development for AI/HPC capacity

Iris Energy Limited is channeling its expanded GPU fleet directly to enterprise and institutional customers for High-Performance Computing (HPC) and AI workloads.

Bitcoin mining pools (e.g., Foundry USA Pool)

The company utilizes its proprietary infrastructure to generate Bitcoin, which is then sold or held, implying participation in the broader mining ecosystem and pools for transaction validation.

Investor roadshows and financial market communications

Iris Energy Limited communicates its operational and financial performance through public filings and investor engagement to secure capital and maintain market confidence.

• Total Revenue (FY 2025): $501.0 million (a 168% increase year-over-year).
• Net Income (FY 2025): Record $86.9 million (reversal from FY24 net loss of $28.9 million).
• Adjusted EBITDA (FY 2025): $269.7 million (a 395% increase year-over-year).
• Revenue (Q1 Fiscal 2026): $240.3 million (a 355.4% increase year-over-year).
• Cash and Cash Equivalents (as of June 30, 2025): $1 billion.
• Debt-to-Equity Ratio: 0.23.
• FMR LLC added 8,647,252 shares in Q2 2025.

Iris Energy Limited (IREN) - Canvas Business Model: Customer Segments

You're looking at Iris Energy Limited (IREN) and seeing a company that has successfully layered a high-growth AI compute business on top of a solid, sustainable Bitcoin mining foundation. The customer segments reflect this dual focus, moving beyond just miners to include sophisticated tech and capital partners.

Institutional and sophisticated investors in the Bitcoin network

This segment includes the capital markets players who see value in the company's low-cost, green Bitcoin production capabilities. Their interest is evident in the trading activity. In the third quarter of 2025, Iris Energy Limited saw significant capital flow, with 248 institutional investors adding shares to their portfolios, while 139 decreased their positions in that same quarter. To give you a concrete example of the scale, in the second quarter of 2025, FMR LLC added 8,647,252 shares, an estimated value of $125,990,461. More recently in Q3 2025, D. E. SHAW & CO., INC. added 10,717,054 shares, valued at approximately $502,951,344. This shows sophisticated capital is actively taking positions in Iris Energy Limited's evolving story.

U.S.-based AI cloud providers and large-scale AI/HPC customers

This is the new, high-velocity customer segment driving the strategic pivot. Iris Energy Limited is targeting over $500 million in annualized run-rate revenue (ARR) from AI Cloud Services by the first quarter of 2026. The company has already secured customer contracts for 11,000 of the approximate 23,000 GPUs expected to be operational by the end of 2025. These secured contracts translate to approximately $225 million in AI Cloud ARR, with the new NVIDIA Blackwell GPUs being contracted on an average term of 2 years. The company was named a preferred partner of NVIDIA in August 2025, which helps secure this customer pipeline.

Enterprises requiring high-performance computing for machine learning

These are the end-users of the GPU compute power, spanning machine learning training and inference workloads. Iris Energy Limited is actively engaging with both existing and prospective customers for capacity beyond the initial 23,000 GPU deployment. The infrastructure development, including the Horizon 1 & 2 data centers in Childress, Texas, provides a path to support over 100,000 GPUs in total across their British Columbia sites and the new Horizon facilities. The AI Cloud Services segment saw its revenue jump 33% quarter-over-quarter in Q3 FY25, reaching $3.6 million.

The key metrics defining the AI customer engagement are:

• Targeted AI Cloud ARR by December 2025: $200-250 million.
• Total secured AI Cloud ARR as of October 2025: $225 million.
• Total expected GPU fleet by end of 2025: approximately 23,000 units.
• AI Cloud hardware profit margins reported in Q3 FY25: exceeding 95%.

ESG-mandated institutional investors seeking green digital assets

This segment is attracted by Iris Energy Limited's foundational commitment to sustainability, which is a key differentiator in the energy-intensive digital asset space. The company maintains a commitment to 100% renewable energy sources for all operations. This green profile appeals directly to investors with Environmental, Social, and Governance mandates. The company secured 2,910 MW of grid-connected power, which is predominantly renewable. This low-cost, green power underpins their Bitcoin mining operations, which benefit from an electricity cost of approximately $0.033 per kWh in key locations like Childress, Texas.

Here's a quick comparison of the two primary revenue-generating customer bases as of late 2025:

Finance: draft 13-week cash view by Friday.

Iris Energy Limited (IREN) - Canvas Business Model: Cost Structure

You're looking at the major outlays for Iris Energy Limited (IREN) as it aggressively scales its dual-engine business across Bitcoin mining and AI Cloud Services through late 2025. The cost structure is heavily weighted toward upfront capital for high-performance computing assets, balanced by very low, but significant, energy costs.

High Capital Expenditure (CapEx) for Data Center and GPU Expansion

The primary cost driver is the massive investment in computing hardware and the associated infrastructure buildout. Iris Energy Limited (IREN) spent $676 million on NVIDIA and AMD GPUs during fiscal year 2025 to fuel its AI pivot. This is a clear signal of high CapEx requirements to compete in the high-performance computing space. The company is executing an ambitious plan to scale its GPU fleet from approximately 23,000 units in late 2025 to a projected 140,000 by 2026. Furthermore, the physical infrastructure requires significant outlay, including commencing construction of a 2-gigawatt data center hub in Sweetwater, Texas. This scale of deployment necessitates substantial, ongoing capital deployment.

Electricity Costs (Low, but a Major Operational Expense)

While Iris Energy Limited (IREN) leverages 100% renewable energy, making its power costs among the lowest in the industry, electricity remains a major operational expense when scaled across its large footprint. The company has reported achieving power prices as low as 2.9 cents/kWh at its Childress site as of May 2025, and general estimates hover around $0.033 per kilowatt-hour or $0.035 per kilowatt-hour across its operations in 2025. Even with these low rates, electricity costs are a direct deduction from revenue before calculating hardware profit. For example, in April 2025, the electricity cost per Bitcoin mined was reported as ($24,381). The AI Cloud Services segment, however, shows extreme efficiency, with hardware profit margins consistently near 97% to 98% in 2025, meaning electricity is the only significant direct cost.

Procurement Costs for Bitcoin ASIC Miners and NVIDIA GPUs (e.g., H100, GB300)

The procurement of cutting-edge GPUs is a defining cost element for the AI segment. Iris Energy Limited (IREN) has secured a preferred partnership with NVIDIA, evidenced by a deal in August 2025 to acquire 1,200 B300 and 1,200 GB300 GPUs worth $168 million. The company's total NVIDIA GPU fleet reached 10,900 GPUs for AI and HPC workloads as of late 2025. For the Bitcoin mining side, the company achieved an efficiency of 15 J/TH by mid-2025, reflecting the cost of acquiring and deploying the latest generation of efficient ASIC miners.

Operating Expenses for Data Center Maintenance and Security

Beyond direct power costs, the general overhead required to run a vertically integrated, large-scale data center platform is substantial. For the full fiscal year 2025, Iris Energy Limited (IREN) reported that operating expenses rose to $114 million, driven primarily by overheads and depreciation costs associated with the expanded platform. Illustrative calculations for Adjusted EBITDA in May 2025 assumed overheads alone were around $104 million for the period. These costs cover everything from site maintenance and security to general and administrative functions.

Interest and Lease Payments on Hardware Financing

To fund the rapid deployment of hardware, especially GPUs, Iris Energy Limited (IREN) has utilized financing, which translates directly into finance expenses. Finance expense on the income statement consists primarily of interest expense on mining hardware financing arrangements and lease obligations. In 2025, the company raised over $96 million in financing through a 24-month lease specifically for NVIDIA GB300s installations. This structure allows for immediate deployment of high-cost assets while spreading the capital outlay over time, creating a recurring interest/lease payment cost.

The company ended the fiscal year with approximately $565 million in cash, which provides a cushion against these significant, ongoing capital and operating costs.

Iris Energy Limited (IREN) - Canvas Business Model: Revenue Streams

You're looking at the hard numbers driving Iris Energy Limited's revenue streams as of late 2025. This company is definitely executing a dual-engine strategy, blending digital asset mining with high-performance computing services.

The primary historical driver, Bitcoin Mining Revenue, contributed $484.6 million to the total Fiscal Year 2025 revenue. For the full Fiscal Year 2025, Iris Energy Limited reported total revenue of $501.0 million, a 168% increase versus FY24's $187.2 million. The company achieved a self-mining capacity of 50 exahashes per second (EH/s) by mid-2025. In August 2025, the average operating hashrate was 44.0 EH/s, with 668 BTC mined that month, achieving a Bitcoin mining hardware profit margin of 66%.

The rapidly growing second engine is AI Cloud Services Revenue. Iris Energy Limited is targeting an annualized run-rate revenue of $200-$250 million by December 2025. This target is supported by customer contracts covering 11,000 NVIDIA GPUs for an annualized $225 million revenue run-rate by the end of 2025. The deployed NVIDIA GPU fleet reached approximately 10,900 units as of August 2025. The AI Cloud segment demonstrated high efficiency, with hardware profit margins exceeding 95% in Q3 FY25.

The shift in focus is clear, with Q1 FY26 total revenue hitting $240.3 million, a 355% year-over-year growth, driven heavily by the AI segment. A defining milestone is the secured $9.7 billion, five-year AI Cloud contract with Microsoft, expected to contribute an average annual recurring revenue (ARR) of approximately $1.94 billion. Iris Energy Limited is targeting $3.4 billion in AI Cloud ARR by the end of 2026, which involves an expansion to 140,000 GPUs.

Iris Energy Limited's infrastructure underpins these revenue streams, which also includes monetization of excess power capacity and potential colocation deals. The company's contracted grid-connected power capacity increased to 2,910MW as of FY25 results. The operating data center capacity reached 810MW in FY25. The company is leveraging its vertically integrated platform for build-to-suit deals, such as the deployment of NVIDIA GB300 NVL72 systems at the Prince George site, capable of supporting over 4,500 GPUs.

The final component involves the Sale of mined Bitcoin for fiat currency, which is the mechanism that converts the mined assets into the reported Bitcoin Mining Revenue. The company's power costs remain low, with power prices at key sites under 3.5 c/kWh. The company's overall net margin reached 16.7% in 2025.

Here's a quick look at the scale of the two primary revenue drivers as of late 2025:

The strategic flexibility allows Iris Energy Limited to pivot capacity between mining and AI workloads, which is key to maximizing revenue from its power contracts.

• Contracted AI Cloud ARR from multi-year deals (excluding Microsoft) aims for >$500 million by Q1 2026.
• Total NVIDIA GPU fleet deployed reached 10,900 units in 2025.
• Bitcoin mining capacity reached 50 EH/s by mid-2025.
• The company secured $200 million in non-dilutive GPU financing in 2025.

Finance: draft 13-week cash view by Friday.