IREN to reclassify Bitcoin mining cash flows in financial statements

Published 20/03/2025, 11:58
IREN to reclassify Bitcoin mining cash flows in financial statements

SYDNEY - IREN Limited (NASDAQ: IREN), a data center company specializing in Bitcoin mining and AI cloud services with a market capitalization of $1.58 billion, announced today that it will restate its financial statements for the fiscal years 2022, 2023, and 2024, as well as certain interim periods within 2024. According to InvestingPro data, the company has demonstrated impressive revenue growth of 133% over the last twelve months, though analysts have recently revised their earnings expectations downward. This decision follows a review by the Securities and Exchange Commission (SEC) and is based on recommendations from the Audit and Risk Committee and the Board of Directors.

The restatement will reclassify proceeds from the sales of mined Bitcoin from operating activities to investing activities, aligning with the International Accounting Standards (IAS) 7.16(b) guidelines. This adjustment is in preparation for the company’s transition to reporting under U.S. Generally Accepted Accounting Principles (U.S. GAAP) as it moves towards U.S. domestic filer status within the year.

IREN emphasized that this restatement does not reflect a change in its operational performance, nor does it affect the company’s profit or loss statements, financial position, changes in equity, or cash and cash equivalents for the periods in question. The restatements are described in detail in the company’s amended filings on EDGAR, including Form 20-F/A for the fiscal year ended June 30, 2024, and Forms 6-K/A for the first and second quarter interim results of fiscal year 2025.

The company’s forward-looking statements indicate plans to expand its Bitcoin mining capacity to 52 EH/s and its data center operations from 510MW to 910MW by 2025, using 100% renewable energy. IREN also reported having secured a significant development portfolio with 2,910MW of grid-connected power across North America. The company maintains strong operational efficiency with a remarkable 90.06% gross profit margin, though InvestingPro analysis indicates rapid cash burn rates that investors should monitor. For detailed insights into IREN’s expansion strategy and financial health, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

These forward-looking statements, however, are subject to various risks and uncertainties, including fluctuations in Bitcoin prices, the ability to secure additional capital, and the challenges of entering new markets such as high-performance computing solutions. While IREN holds more cash than debt on its balance sheet, InvestingPro analysis reveals high stock price volatility with a beta of 3.65. IREN’s future financial and operational performance may differ materially from these projections due to these and other factors. Subscribers to InvestingPro have access to 13 additional key insights about IREN, helping them make more informed investment decisions.

This news is based on a press release statement and provides a factual update on IREN’s financial reporting adjustments and future business strategy without endorsing the company’s claims or speculating on the potential industry impact.

In other recent news, IREN Limited has reported a resilient 70% profit margin for its Bitcoin mining hardware in February 2025, generating $43.9 million in revenue from mining 3,459 BTC. The company is on track to increase its operating hashrate to 50 EH/s over the next four months, with anticipated annualized operating cash flows of approximately $600 million under current market conditions. Additionally, IREN has secured a 600MW grid connection agreement for its Sweetwater 2 data center in West Texas, which is part of its strategy to expand its data center capabilities. This agreement involves $4.1 million in non-refundable connection costs and $26.9 million in refundable deposits, with energization scheduled for late 2027.

JPMorgan has upgraded IREN’s stock rating from Neutral to Overweight, although it reduced the price target to $12.00 from $15.00, citing the company’s efficient fleet and advantageous power contracts. Cantor Fitzgerald also adjusted its price target for IREN to $20.00 from $23.00, maintaining an Overweight rating and noting the company’s plans to expand its data center capacity at the Childress site. IREN’s AI Cloud Service is nearing full capacity, reflecting strong demand for high-performance computing solutions.

The company has commenced site works at the 1.4GW Sweetwater 1 project, with energization planned for April 2026, and is finalizing a connection agreement for Sweetwater 2. IREN’s technical commentary highlights strong margins supported by low electricity costs and efficient fleet operations. The company’s strategy includes diversifying into AI and HPC offerings, with flexible financing aimed at accretive capital deployment.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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