Bitcoin mining firm IREN has announced it will pivot away from mining cryptocurrencies in favor of focusing on building out its AI data center and AI cloud service businesses.
In a business update from March 31, IREN cofounder and CEO Daniel Roberts explained that the company will pause the expansion of its Bitcoin mining operations upon the completion of its ongoing 50 EHps build-out, which is nearing completion.
“As we near completion of our 50 EHps mining expansion, our focus is shifting to the next phase of growth and delivering scalable infrastructure for AI and HPC through our AI cloud services and AI data center businesses,” said Roberts.
IREN’s Bitcoin mining cashflows will be redirected towards the growth of its AI cloud services and AI data center businesses. The company expects its annualized net cashflow from Bitcoin mining to reach $528 million this year.
“Our capital strategy prioritizes customer prepayments and a range of debt financing solutions, with the existing ATM facility providing a strategic backstop to support delivery certainty and ongoing commercial discussions relating to the AI cloud services and AI data center businesses,” Roberts explained.
IREN currently has two AI data centers under development. Its ‘Horizon 1’ data center is expected to host an initial IT load of 50MW, with the potential for further expansion. Horizon 1 will demand capital expenditure of between $300-350 million, which will be funded through customer colocation prepayments and debt financing.
Meanwhile, IREN’s ‘Sweetwater Data Center Hub’ will wield a 2GW power capacity. The site is currently being prepared to enable fast construction upon completion of a customer contract.
IREN currently has a total of 2.75 GW of secured power operational in the West Texas area. The Australia-based firm saw its stock price drop 34.2 percent in the last year.
