IREN Shares Rise as Co-CEO Says Debt and Prepayments Can Fund FY27 Capex
Shares of IREN (NASDAQ:IREN) rose by 4% on Monday after co-founder and co-CEO Daniel Roberts stated that the company's $25 billion to $30 billion fiscal 2027 capital expenditure plan does not require a large equity raise. Roberts explained that customer prepayments cover about half of GPU costs, while lenders fund most of the remainder, addressing investor concerns over potential dilution following IREN’s recent financial report. IREN reported a widened net loss in its last quarter but saw AI Cloud revenue double to $71 million and secured $4 billion in contracted annual recurring revenue. The company has arranged significant GPU financing from major clients like Microsoft at favorable interest rates, supporting the funding of new data center expansions without relying heavily on equity. While IREN's stock climbed, peer TeraWulf (NASDAQ:WULF) fell 2%, highlighting that Monday’s move was specific to IREN and not a broader sector rally. The SPDR S&P 500 ETF Trust remained slightly lower.
