Iris Energy Limited (NASDAQ: IREN) ("Iris Energy" or "the
Company"), a leading owner and operator of institutional-grade,
highly efficient proprietary Bitcoin mining data centers powered by
100% renewable energy, today published a monthly investor update
for June 2023, containing its results from operations as well
as business updates.
Key Highlights1
Key metrics2 |
Jun-23 |
Average operating hashrate (PH/s) |
5,587 |
Bitcoin mined |
428 |
Mining revenue (US$’000) |
11,653 |
Electricity costs (US$’000) |
5,572 |
Revenue per Bitcoin (US$) |
27,211 |
Electricity costs per Bitcoin (US$) |
13,011 |
- Corporate:
- Prior
high-performance computing (“HPC”) data center strategy revitalized
- Recent discussions
with prospective HPC partners (e.g., AI/cloud providers, GPU
manufacturers, hyperscale data center operators) have further
validated previous work and attractive positioning:
- 100% renewable
energy
- Expertise in
building and operating data centers for high power density
applications
- Significant
available power, including 500MW3 at Childress
- Expansion of
Bitcoin mining
- Record average
operating hashrate during June of 5.6 EH/s
- Targeting expansion
from 5.6 EH/s to ~9.1 EH/s4 of potential data center capacity by
early 20245
- Operations (for the
month of June 2023):
- Average operating
hashrate of 5,587 PH/s (+1% vs. May)
- Monthly operating
revenue of US$11.7 million (-14% vs. May)
- 428 Bitcoin mined
(-16% vs. May)
- ~US$0.6 million of
estimated power sales at Childress via automated algorithm (~22
Bitcoin equivalent)6
The reduction
in monthly operating revenue and Bitcoin mined (vs. May) primarily
reflects the reversion in network transaction fees and increase in
difficulty-implied global hashrate during the period.
- Construction:
- Childress (Phase 1:
100MW – Texas, USA)
- 20MW data center
operating, with remaining 80MW under construction (Phase 1)
- Long-lead items
ordered for second 100MW (Phase 2)
- Rapid, efficient
and near-term growth pathway for subsequent 400MW (Phases 3-6)
Corporate update
9.1 EH/s expansion plan and revitalization of
HPC strategy
On June 20, Iris Energy announced its expansion
plan to 9.1 EH/s and revitalization of its HPC strategy. Key
highlights:
- Childress Phase 1
(first 100MW): construction of remaining 80MW underway, targeting
expansion of potential data center capacity from 5.6 EH/s to ~9.1
EH/s4 by early 20245
- Childress Phase 2
(second 100MW): long-lead items ordered to unlock ~13.6 EH/s4
- Near-term focus on
data center construction, whilst retaining flexibility on timing
for miner purchases, which is subject to funding and market
conditions
- The Company remains
well capitalized with ~$64m cash7, no debt, operating cashflows
from its existing 5.6 EH/s, as well as additional optionality from
its committed equity facility
- Prior HPC8 data
center strategy revitalized with early traction for potential use
of current sites, as well as additional global sites under
development
The update can be accessed via the following
link.
Upcoming conferences
Iris Energy currently plans to attend the
following conferences during the second half of 2023:
- August 7-10:
Canaccord Genuity 43rd Annual Growth Conference, Boston
- September 11-13:
H.C. Wainwright 25th Annual Global Investment Conference, New
York
- October 5-6:
Pacific Bitcoin, Los Angeles
- October 30-31: AIM
Summit, Dubai
Canal Flats update (0.8 EH/s, 30MW
capacity) – BC, Canada
Canal Flats has been powered by 100% renewable
energy since inception9.
The project achieved average monthly operating
hashrate of 831 PH/s in June compared to 809 PH/s last month.
Mackenzie update (2.6 EH/s, 80MW
capacity) – BC, Canada
Mackenzie has been powered by 100% renewable
energy since inception9.
The project achieved average monthly operating
hashrate of 2,572 PH/s in June compared to 2,532 PH/s last
month.
Prince George update (1.6 EH/s, 50MW
capacity) – BC, Canada
Prince George has been powered by 100% renewable
energy since inception9.
The project achieved average monthly operating
hashrate of 1,608 PH/s in June compared to 1,592 PH/s last
month.
Childress update (0.6 EH/s, 20MW
capacity / 80MW under construction) – Texas, USA
Childress has been powered by 100% renewable
energy since inception via the purchase of RECs.
The Company’s 600MW high voltage connection
infrastructure and first 20MW data center (supporting ~0.6 EH/s)
have been operational since April 2023.
The project achieved average monthly operating
hashrate of 577 PH/s in June compared to 577 PH/s last month.
Construction of remaining 80MW is underway for
Phase 1 (first 100MW), targeting expansion of potential data center
capacity from 5.6 EH/s to ~9.1 EH/s4 by early 20245.
Additional long-lead items continue to be
ordered for Phase 2 (second 100MW), which has the potential to
unlock up to ~13.6 EH/s4 for the Company.
The Company’s significant upfront investment in
key infrastructure also provides a rapid, efficient and near-term
growth pathway for the subsequent 400MW of power capacity at the
site (Phases 3-6).
Childress – operational 20MW data center
Childress – aerial view of the site
Community engagement
Canal Flats, BC, Canada
- Iris Energy hosted
an Open House, welcoming the local community to participate in site
tours
- Iris Energy
presented a cheque to the Canal Flats Community Society in the
amount of C$20,000 to support the annual Flats Fest outdoor music
festival
Prince George, BC, Canada
- Iris Energy was
invited to attend the Indigenous Day celebration at Lheidli T’enneh
Park, meeting with Elders to learn more about the Lheidli T’enneh
history and to hear their stories
Mackenzie, BC, Canada
- Iris Energy hosted
the Mayor and Council members for site tours
- Iris Energy
contributed C$1,000 to the High School’s Dry Graduation celebration
to ensure the graduating class can celebrate their success
safely
- Members of the Iris
Energy team participated in the McLeod Lake Indian Band Indigenous
People’s Day event
- The Iris Energy
team participated in the Mike Morris Golf Tournament and sponsored
a hole, supporting this local event and partaking in the
festivities with all the funds raised going to the Mackenzie
Counselling Services
Childress, Texas, USA
- Iris Energy
announced the launch of the Community Grants Program for 2023, to
invest up to US$100,000 into local non-profit organization and
schools in the community
Canal Flats – Community Society
Mackenzie – Mike Morris Golf Tournament
Future development sites
Development works continued across additional
sites in Canada, the USA and Asia-Pacific, which have the potential
to support up to an additional >1GW of aggregate capacity that
can power growth beyond the Company’s 760MW of announced
capacity.
Operating and financial results
Daily average operating hashrate chart
Technical commentary
The Company’s average operating hashrate was
5,587 PH/s in June (compared to 5,510 PH/s in May). The decrease in
Bitcoin mined (428 vs. 508 in May) was primarily attributable to a
reversion in network transaction fees and an increase in the
difficulty-implied global hashrate. The decrease in electricity
costs ($5.6 million vs. $6.1 million in May) was primarily
attributable to automated power cost optimization at Childress
resulting in ~$0.6 million of estimated power sales6. Electricity
costs per Bitcoin were $13.0k in June (compared to $11.9k in May)
due to the decrease in Bitcoin mined, partially offset by lower
power costs at Childress.
Operating |
Apr-23 |
May-23 |
Jun-23 |
Renewable energy usage
(MW)10 |
119 |
167 |
169 |
Avg operating hashrate (PH/s) |
3,965 |
5,510 |
5,587 |
Financial (unaudited)2 |
Apr-23 |
May-23 |
Jun-23 |
Bitcoin mined |
319 |
508 |
428 |
Mining revenue (US$’000) |
9,037 |
13,526 |
11,653 |
Electricity costs (US$’000) |
4,184 |
6,056 |
5,572 |
Revenue per Bitcoin (US$) |
28,331 |
26,628 |
27,211 |
Electricity costs per Bitcoin (US$) |
13,118 (12,563 adj)11 |
11,922 |
13,011 |
Miner Shipping Schedule |
Hardware |
Units |
EH/s (incremental) |
EH/s(cumulative) |
Operating (June average) |
S19j Pro12 |
56,352 |
5.6 |
5.6 |
Inventory – pending deployment or in transit |
S19j Pro |
834 |
0.1 |
5.7 |
Total* |
|
57,186 |
5.7 |
5.7 |
* As noted in the table below, the Company’s
existing data center capacity is estimated to support ~5.6 EH/s of
Bitmain S19j Pro miners.
Site |
Capacity (MW) |
Capacity (EH/s)13 |
Timing |
Status |
Canal Flats (BC, Canada) |
30 |
0.8 |
Complete |
Operating |
Mackenzie (BC, Canada) |
80 |
2.6 |
Complete |
Operating |
Prince George (BC, Canada) |
50 |
1.6 |
Complete |
Operating |
Total (BC, Canada) |
160 |
5.0 |
|
|
Childress (Texas, USA) |
20 |
0.6 |
Complete |
Operating |
Total Operating (Canada & USA) |
180 |
5.6 |
|
|
Childress (Texas, USA) |
80 |
3.54 |
Early 20245 |
Under construction |
Total (Canada & USA) |
260 |
9.1 |
|
|
About Iris Energy
Iris Energy is a sustainable Bitcoin mining
company that supports the decarbonization of energy markets and the
global Bitcoin network.
- 100% renewables:
Iris Energy targets markets with low-cost, under-utilized renewable
energy, and where the Company can support local communities
- Long-term security
over infrastructure, land and power supply: Iris Energy builds,
owns and operates its electrical infrastructure and proprietary
data centers, providing long-term security and operational control
over its assets
- Seasoned management
team: Iris Energy’s team has an impressive track record of success
across energy, infrastructure, renewables, finance, digital assets
and data centers with cumulative experience in delivering >$25bn
in energy and infrastructure projects globally
Forward-Looking Statements
This investor update includes “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements generally relate to
future events or Iris Energy’s future financial or operating
performance. For example, forward-looking statements include but
are not limited to the Company’s business strategy, expected
operational and financial results, and expected increase in power
capacity and hashrate. In some cases, you can identify
forward-looking statements by terminology such as “anticipate,”
“believe,” “may,” “can,” “should,” “could,” “might,” “plan,”
“possible,” “project,” “strive,” “budget,” “forecast,” “expect,”
“intend,” “target”, “will,” “estimate,” “predict,” “potential,”
“continue,” “scheduled” or the negatives of these terms or
variations of them or similar terminology, but the absence of these
words does not mean that statement is not forward-looking. Such
forward-looking statements are subject to risks, uncertainties, and
other factors which could cause actual results to differ materially
from those expressed or implied by such forward looking statements.
In addition, any statements or information that refer to
expectations, beliefs, plans, projections, objectives, performance
or other characterizations of future events or circumstances,
including any underlying assumptions, are forward-looking.
These forward-looking statements are based on
management’s current expectations and beliefs. These statements are
neither promises nor guarantees, but involve known and unknown
risks, uncertainties and other important factors that may cause
Iris Energy’s actual results, performance or achievements to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements, including, but not limited to: Iris Energy’s limited
operating history with operating losses; electricity outage,
limitation of electricity supply or increase in electricity costs,
as well as limitations on the availability of electrical supply for
Bitcoin mining due to restrictions imposed by governmental
authorities or otherwise; long term outage or limitation of the
internet connection at Iris Energy’s sites; any critical failure of
key electrical or data center equipment; serial defects or
underperformance with respect to Iris Energy’s equipment; failure
of suppliers to perform under the relevant supply contracts for
equipment that has already been procured which may delay Iris
Energy’s expansion plans; supply chain and logistics issues for
Iris Energy or Iris Energy’s suppliers; cancellation or withdrawal
of required operating and other permits and licenses; customary
risks in developing greenfield infrastructure projects; Iris
Energy’s evolving business model and strategy; Iris Energy’s
ability to successfully manage its growth; Iris Energy’s ability to
raise additional financing (whether because of the conditions of
the markets, Iris Energy’s financial condition or otherwise) on a
timely basis, or at all, which could adversely impact the Company’s
ability to meet its capital commitments (including payments due
under any hardware purchase contracts or debt financing
obligations) and the Company’s growth plans; the failure of Iris
Energy’s wholly-owned special purpose vehicles to make required
payments of principal and/or interest under their limited recourse
equipment financing arrangements when due or otherwise comply with
the terms thereof, as a result of which the lender thereunder has
declared the entire principal amount of each loan to be immediately
due and payable, and is taking steps to enforce the indebtedness
and its rights in the Bitcoin miners with respect to certain of
such loans and other assets securing such loans, including
appointing a receiver with respect to such special purpose
vehicles, which is expected to result in the loss of the relevant
Bitcoin miners securing such loans and has materially reduced the
Company’s operating capacity, and could also lead to bankruptcy or
liquidation of the relevant special purpose vehicles, and
materially and adversely impact the Company’s business, operating
expansion plans, financial condition, cash flows and results of
operations; the terms of any additional financing or any
refinancing, restructuring or modification to the terms of any
existing financing, which could be less favorable or require Iris
Energy to comply with more onerous covenants or restrictions, any
of which could restrict its business operations and adversely
impact its financial condition, cash flows and results of
operations; competition; Bitcoin prices, global hashrate and the
market value of Bitcoin miners, any of which could adversely impact
its financial condition, cash flows and results of operations, as
well as its ability to raise additional financing and the ability
of its wholly owned special purpose vehicles to make required
payments of principal and/or interest on their equipment financing
facilities; risks related to health pandemics including those of
COVID-19; changes in regulation of digital assets; and other
important factors discussed under the caption “Risk Factors” in
Iris Energy’s annual report on Form 20-F filed with the SEC on
September 13, 2022, and the Company’s report on Form 6-K filed with
the SEC on February 15, 2023, as such factors may be updated from
time to time in its other filings with the SEC, accessible on the
SEC’s website at www.sec.gov and the Investor Relations section of
Iris Energy’s website at https://investors.irisenergy.co.
These and other important factors could cause
actual results to differ materially from those indicated by the
forward-looking statements made in this investor update. Any
forward-looking statement that Iris Energy makes in this investor
update speaks only as of the date of such statement. Except as
required by law, Iris Energy disclaims any obligation to update or
revise, or to publicly announce any update or revision to, any of
the forward-looking statements, whether as a result of new
information, future events or otherwise.
Preliminary Financial
Information
The preliminary financial information for the
month of June 2023 included in this investor update is not subject
to the same closing procedures as our unaudited quarterly financial
results and has not been reviewed by our independent registered
public accounting firm. The preliminary financial information
included in this investor update does not represent a comprehensive
statement of our financial results or financial position and should
not be viewed as a substitute for unaudited financial statements
prepared in accordance with International Financial Reporting
Standards. Accordingly, you should not place undue reliance on the
preliminary financial information included in this investor
update.
Contacts
MediaJon SnowballDomestique+61 477 946 068
InvestorsLincoln TanIris Energy+61 407 423
395lincoln.tan@irisenergy.co
To keep updated on Iris Energy’s news releases and SEC filings,
please subscribe to email alerts at
https://investors.irisenergy.co/ir-resources/email-alerts.
____________________________________
1 All timing references in this investor update are to calendar
months, in each case unless otherwise specified.2 Bitcoin and
Bitcoin mined in this investor update are presented in accordance
with our revenue recognition policy which is determined on a
Bitcoin received basis (post deduction of mining pool fees as
applicable).3 Assumes 600MW grid connection and operational bulk
power station, excluding Phase 1 (first 100MW).4 Assumes purchase
of Bitmain S19 XP miners. Additional miners have not yet been
purchased and the Company will continue to monitor the market for
purchase opportunities. Hashrate figures may change depending on
miner procurement selection.5 Indicative timing for completion of
data centers.6 Represents unaudited estimated power credits
(primarily driven by curtailment) under hedge contracts (based on
current meter data and average quarter hour spot prices). Bitcoin
equivalent calculated by dividing the power credits by the average
revenue per Bitcoin of $27,211 for the month of June. Current
internal estimate as monthly electricity invoices have not yet been
issued for Childress.7 Reflects USD equivalent, unaudited
preliminary cash, cash equivalents and term deposits as of May 31,
2023.8 Refers to the practice of aggregating computing resources to
perform computationally intensive operations. Potential
applications include AI / machine learning, health care,
engineering, aerospace, media & entertainment and finance.9
Currently approximately 97% directly from renewable energy sources;
approximately 3% from purchase of RECs.10 Comprises actual power
usage for Canal Flats, Mackenzie, Prince George and Childress.
Canal Flats, Mackenzie and Prince George have been powered by 100%
renewable energy (since inception) of which approximately 97% is
directly from renewable energy sources; approximately 3% is from
the purchase of RECs. Childress has been powered by 100%
renewable energy since inception via the
purchase of RECs.11 The Company’s unadjusted electricity
costs per Bitcoin mined were elevated in April primarily due to
excess demand charges for our BC sites attributable to unutilized
power capacity. The adjusted electricity costs per Bitcoin mined
excludes such excess demand charges (i.e. assumes demand charges
based on average demand for the period).12 Includes S19 XP hardware
and mix of lower efficiency hardware, which is estimated to
represent less than 2% of the operating 5.6 EH/s.13 Reflects
estimated hashrate capacity by site assuming full utilization of
existing available data center capacity with Bitmain S19j Pro
miners.
Photos accompanying this announcement are available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/2f193319-6417-4abc-b92a-47f1a3b618bb
https://www.globenewswire.com/NewsRoom/AttachmentNg/645152e5-5071-4954-a409-bc8fa9ded6a4
https://www.globenewswire.com/NewsRoom/AttachmentNg/4222469f-0748-4ef1-b4a3-68f84f20903c
https://www.globenewswire.com/NewsRoom/AttachmentNg/df365f09-b401-47c8-a763-0eb2a07e239f
https://www.globenewswire.com/NewsRoom/AttachmentNg/ee41da65-bac6-4bcb-9324-4c8a73432de1
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