IREN's $4B ARR and reusable GPU infrastructure could boost profits despite risks from GPU replacement costs.

IREN has secured a $4 billion contracted annual recurring revenue (ARR) and is leveraging reusable infrastructure to potentially increase profitability in future GPU cycles. Customer prepayments cover about 45%-55% of GPU capital expenditures, while financing options can fund up to 90% of hardware costs. The company trades at relatively low forward valuation multiples despite expecting revenue growth of nearly 143%. However, a key risk remains whether the two-year compute payback period will be fast enough to counteract GPU obsolescence and ongoing replacement expenses, which could impact shareholder returns.

IREN's strategy to fund future GPU cycles through its current contracted revenue and financing options aligns with its market performance. On Pluang, IREN trades at USD 35.01, down 0.51% as of Oct 13, 2026 00:42 WIB, with a market cap of $13.87 billion. Despite the recent dip, the stock remains well above its 52-week low of $29.31, showing resilience amid sector challenges.