We are exposed to market risk in the ordinary course of our business. Market risk represents the risk of loss that may impact our financial position due to adverse changes in financial market prices and rates. Currency Risk Our functional and presentation currency is in U.S. dollars: however, we undertake certain transactions denominated in foreign currency and are exposed to foreign currency risk through foreign exchange rate fluctuations. Foreign exchange risk arises from future commercial transactions and recognized financial assets and financial liabilities denominated in a currency that is not the entity's functional currency. The risk is measured using sensitivity analysis. Our exposure to foreign currency risk arises when we or one of our entities holds a financial asset or liability in a currency other than the functional currency of that entity. We do not currently enter into derivative or other hedging arrangements to manage our foreign currency exposure. As of June 30, 2026, we had $74.4 million net exposure to the Canadian dollar, primarily in intercompany receivables and cash. A strengthening or weakening of the Canadian dollar exchange rate by 10% would increase the Income (loss) before taxes by $7.4 million or decrease the Income (loss) before taxes by $7.4 million, respectively. 125 As of June 30, 2026, we had $9.2 million net exposure to the Australian dollar, primarily related to GST receivable and cash and cash equivalents. A strengthening or weakening of the Australian dollar exchange rate by 10% would increase the Income (loss) before taxes by $0.9 million or decrease the Income (loss) before taxes by $0.9 million respectively. As of June 30, 2026, we had $33.4 million net exposure to the Euro, primarily related to cash and cash equivalents denominated in Euro. A strengthening or weakening of the Euro dollar exchange rate by 10% would increase the Income (loss) before taxes by $3.3 million or decrease the Income (loss) before taxes by $3.3 million, respectively. As of June 30, 2026, we had $87.3 million net liability exposure to the U.S. dollar, primarily related to account payables and accrued expenses as well as intercompany payables denominated in U.S. dollar. A strengthening or weakening of the U.S. dollar exchange rate by 10% would decrease the Income (loss) before taxes by $8.7 million or increase the Income (loss) before tax by $8.7 million, respectively. As we continue our business expansion, we expect to face continued exposure to exchange rate risk from the Canadian dollar, the Australian dollar, the Euro and the U.S. dollar. Cost of Power Risk Our data center operations, including our AI Cloud Services, bare metal services and Bitcoin mining operations, are highly power-intensive, with electrical power required both to operate our GPU and ASIC hardware and to dissipate the significant amount of heat generated by operating that hardware. In the fiscal year ended June 30, 2026, the cost of power represented approximately 27% of our total revenue. A 10% increase or decrease in the cost of power over the course of the fiscal year ended June 30, 2026 would have increased or decreased our Income (loss) before taxes by approximately $19.1 million for the year. In May 2026, in connection with the financing of our GPU infrastructure supporting our Microsoft Agreement, we entered into fixed-price physical power hedging arrangements of electricity supply, referenced to the ERCOT West Hub, for the term of the financing. These arrangements are intended to fix the cost and amount of energy associated with the contracted capacity. We remain exposed to power price movements on consumption in excess of hedged volumes and to basis risk between the ERCOT West Hub price and the price at our delivery point in the ERCOT West Load Zone, including congestion and transmission costs. Price Risk The Company is exposed to daily price risk on Bitcoin rewards it generates through contributing computing power to mining pools. Bitcoin rewards are liquidated on a daily basis and no Bitcoin is held as of June 30, 2026. Interest Rate Risk We are exposed to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as a result of changes in the market interest rates on variable interest-bearing financial instruments. During the fiscal year ended June 30, 2026, in connection with the financing of our GPU infrastructure supporting our Microsoft Agreement, we entered into interest rate hedging arrangements, comprising a forward-starting fixed-for-floating SOFR interest rate swap with an aggregate notional amount of $1.5 billion, which remains in place over the term of the related floating-rate term loan facility. As of June 30, 2026, we had $413 million of floating-rate borrowings outstanding under our delayed draw term loan facility, of which approximately $394 million was hedged by the interest rate swap described above. Other than the foregoing, we do not use derivatives to mitigate interest rate exposures. A 100 basis point increase or decrease in interest rates would have increased or decreased the fair value of our interest rate swap by $30.9 million, recorded in accumulated other comprehensive income (loss). Our cash, cash equivalents and restricted cash consist either of balances available on demand or term deposits, which are held with regulated financial institutions at floating rates. A 100 basis point increase or decrease in interest rates would have increased or decreased our Income (loss) before taxes by $34.5 million for the fiscal year ended June 30, 2026, reflecting interest income on our cash, cash equivalents and restricted cash. Credit Risk Our exposure to credit risk is primarily related to potential counterparty credit risk with AI Cloud Services customers, exchanges, mining pools, suppliers and vendors, regulated financial institutions and brokers. We currently generate a large portion of our AI Cloud Services revenue from a small number of customers. We are also exposed to counterparty credit risk with respect to our customers, some of which are early-stage and/or private companies operating predominantly in the AI sector. We mitigate potential counterparty credit risk with AI Cloud Services customers by engaging with counterparties that we believe possess strong creditworthiness based on their credit quality and other factors. We also have the right, under certain customer contracts, to apply customer prepayments against amounts owed by such customers. Additionally, 126 we mitigate credit risk associated with mining pools and exchanges by maintaining relationships with various alternative mining pools and transferring fiat currency to our Australian bank account on a regular basis. For suppliers and vendors risk, this is mitigated through credit due diligence, milestone-based payments, security over advances, vendor financing, dual sourcing and ongoing counterparty monitoring. Our cash, cash equivalents and restricted cash consist of balances held with regulated, listed financial institutions. We regularly monitor industry developments and concentration risks with each financial institution and primarily hold balances on demand with A-1 rated institutions (based on Standard & Poor’s ratings). We have a number of brokers onboarded that can trade on our ATM Facility and we reconcile trades on a regular basis to mitigate against broker credit risk. Market Value of Bitcoin During the fiscal year ended June 30, 2026, a substantial portion of our revenue was comprised of the value of Bitcoin rewards and transaction fees earned through our Bitcoin mining operations, and our operating results and financial condition for the periods presented were accordingly affected by fluctuations and long-term trends in the value of Bitcoin. Bitcoin has its own unique dynamic in terms of valuation, reward rates and similar factors. Any of these factors could lead to material adverse changes in the market for Bitcoin, which could in turn adversely affect the results of our Bitcoin mining operations. Following our strategic transition toward AI Cloud Services and bare metal services, which are contracted in U.S. dollars and are not directly exposed to movements in the value of Bitcoin, we expect our direct exposure to the market value of Bitcoin to continue to decline. A 10% increase or decrease in the market value of Bitcoin over the course of the fiscal year ended June 30, 2026, would have increased or decreased our revenue by $57.8 million for the year and would have had a material effect on our total revenue as of that date. We are exposed to daily price risk on Bitcoin rewards we generate through contributing computing power to mining pools. Bitcoin rewards are typically liquidated on a daily basis in exchange for the USD market value thereof and no Bitcoin was held at the reporting period end. See “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Key Factors Affecting Our Performance”. 127 IREN Limited Contents