IREN Climbs 4% as Co-CEO Says Debt and Prepayments Can Fund FY27 Capex, TeraWulf Slips
IREN shares climbed 4% on Monday after co-founder and co-CEO Daniel Roberts stated that the AI cloud company's fiscal 2027 capital expenditures plan does not require a large equity raise. The stock surged 21% over the past month, while peer TeraWulf dipped 2% and another company, Cipher Mining, showed no movement. The divergence in stock performance reflects investor confidence in IREN's funding strategy and delivery timelines rather than a sector-wide trend.
IREN's net loss expanded 176% to $684 million in the latest quarter, but AI Cloud revenue doubled to $71 million, with $4 billion in contracted annual recurring revenue. Roberts explained that customer prepayments cover approximately half of GPU capital expenditures, with lenders covering the remaining 90%, eliminating the need for a significant equity raise.
The company entered 2027 with $14 billion in cash, committed GPU financing, and customer prepayments, aiming for an additional $8 billion through GPU financing and prepayments.
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