IREN's $25B-$30B CapEx Plan Raises Funding Questions

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โดย Zacks Investment Research·US·Read original
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IREN Limited is entering fiscal year 2027 with a capital expenditure plan of $25 billion to $30 billion, far exceeding its current revenue base, as it shifts from Bitcoin mining to AI cloud services. The company has about $14 billion in existing cash, committed GPU financing, and customer prepayments, including $7.6 billion in cash as of June 30, with $1.7 billion restricted for Microsoft-related GPU spending. Management targets an additional $8 billion in GPU financing and prepayments, having already raised $3.6 billion for the Microsoft contract at a weighted average rate of about 6% and $2.8 billion in equipment financing for other deployments. Customer prepayments cover 45%-55% of GPU capex, and with roughly 90% GPU financing on some deals, excess funding may support data center spending. IREN targets 0.3 GW of IT capacity in 2026 and 0.8 GW in 2027, with over 5 GW of announced pipeline, and has $4 billion in annualized run-rate revenues contracted for 2026 capacity, with $1 billion operating currently. Peers are also ramping up funding: CoreWeave added a $2.6 billion delayed-draw term loan on Aug. 7, 2026, following earlier $8.5 billion and $3.1 billion loans, while Applied Digital closed $1.59 billion of 7% secured notes for 150 MW at Polaris Forge 1 and $2.15 billion for 200 MW at Polaris Forge 2, with its revolver rising to $430 million. IREN shares have declined 1.7% year-to-date, trading at 3.69X forward P/S versus the industry average of 2.58X, and estimates for fiscal 2027 and 2028 earnings have been revised downward, though the company is expected to report a profit next fiscal year.

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IREN Ltd
IREN
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IREN's massive capex plan raises funding questions, with downward earnings revisions and high valuation.

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