IREN CEO Defends $30 Billion Capex Plan Amid Investor Concerns
IREN's massive $30 billion capital expenditure plan has left investors concerned about the company's ability to finance its AI infrastructure growth. However, CEO Dan Roberts argues that the market is misunderstanding the funding dynamics.
In a recent post on X, Roberts clarified that customer prepayments and lenders will fund most of the capex, with only $3 billion of the $19 billion raised coming from equity over the past 12 months.
The company's $684 million net loss in the fiscal fourth quarter includes non-cash charges related to retiring Bitcoin-mining equipment and converting that power capacity into AI infrastructure. IREN's AI Cloud business generated roughly 87% gross margins excluding depreciation and amortization, with recent three-year contracts priced above $20 million per megawatt of IT load.
The company already has approximately $4 billion in contracted annual recurring revenue, with three sites scheduled to commission between now and the end of 2026. However, execution remains a significant risk, as large data-center projects can face construction delays and financing costs can change.