IREN Q1FY27: Built on power and not just GPUs: Why the IREN model wins in a tight compute market

IREN remains misunderstood and the victim of the recent offensive Neocloud label. There may be over 200+ neoclouds who sell compute collateralising GPUs as their sole physical asset. Neoclouds as defined today face long term lease commitments of 10-15 years and debt repayments, while selling compute over shorter horizons, creating financial uncertainty and potential liquidity challenges. IREN's business model is based on self-owned unencumbered physical power assets with the flexibility to decide the pace of development, leverage profile and optimise compute pricing to benefit from movements in spot pricing. IREN is not sold out for the next 2 years at suboptimal historical pricing, and has over ~1.4GW of approved capacity to sell (over 5GW grid connected sites), while compute markets remain tight with political headwinds. On a recent contract, IREN reported 90% prepayments with 45-50% prepayments being the norm. AI Cloud revenue increased 182% sequentially to $200Mn, forming 88% of to