IREN Limited's Q2 2025: Contradictions Unveiled in Bitcoin Mining Strategy and Data Center Demand

These are the key contradictions discussed in IREN Limited's latest 2025Q2 earnings call, specifically including: Bitcoin Mining Strategy and Focus, and the Strategic Process at Sweetwater:



Record Financial Performance and Growth:
- IREN Limited reported $18.9 million of NPAT for Q2 FY '25, reflecting significant growth in the last six months.
- The growth was driven by investments in scale and efficiency, resulting in a substantial increase in operating hashrate from 12.2 exahash to 22.6 exahash.

Bitcoin Mining and Energy Efficiency:
- The company achieved a 31 exahash installed capacity, with plans to increase to 50 exahash by mid-2025.
- IREN's low-cost production is supported by best-in-class efficiency at 15 joules per terahash and average net electricity costs per Bitcoin mined at $21.4 k.

Data Center Expansion and Strategic Initiatives:
- IREN announced Horizon 1, a 75-megawatt liquid-cooled AI data center, expected to be completed in the second half of 2025.
- This move is driven by the scarcity of liquid-cooled data center capacity and the upcoming launch of NVIDIA's liquid-cooled GPUs.

Sweetwater Development and Grid Connection Challenges:
- The company disclosed plans to develop Sweetwater 2, a 600-megawatt data center, with designs for a direct fiber loop connectivity.
- Grid connection challenges are highlighted, citing a significant increase in demand for grid connections, making the project development process more complex.