Iris Energy Limited (NASDAQ: IREN) (together with its subsidiaries,
“Iris Energy” or “the Company”), a leading owner and operator of
next-generation data centers powered by 100% renewable today
reported its financial results for the three and six-months ended
December 31, 2023. All $ amounts are in United States Dollars
(“USD”) unless otherwise stated.
Rebrand from Iris Energy to IREN
Iris Energy is excited to announce our official
name change to IREN, a decision which better reflects our expanding
next-generation data center business. Same business. Same goals.
Different name.
Second Quarter FY24 Financial Results
“The business has continued to strengthen its
position and execute upon significant planned expansion in 2024,”
stated Daniel Roberts, Co-Founder and Co-Chief Executive Officer of
Iris Energy.
“Our Bitcoin mining hashrate is on track to
reach 10 EH/s over the coming months and 20 EH/s by the end of the
year. Our AI cloud services business continues to outperform
expectations and recently tripled in size with another significant
purchase order for NVIDIA H100 GPUs. We also continue to remain
excited about our new 1,400MW data center development site in West
Texas, which should provide substantial growth potential for years
to come.”
- Bitcoin mining
revenue of $42.0 million, as compared to $34.4 million in the first
quarter of fiscal year 2024, primarily driven by an increase in
average Bitcoin price realized
- Mined 1,144
Bitcoin, as compared to 1,223 Bitcoin in the first quarter of our
fiscal year 2024. Lower Bitcoin production was primarily driven by
higher global hashrate rate during the period
- Electricity costs
of $16.6 million, as compared to $16.4 million in the first quarter
of our fiscal year 2024, primarily driven by a consistent average
operating hashrate of 5.6 EH/s across the periods1
- Site and other
costs of $11.9m, as compared to $11.4m in the first quarter of
fiscal year 20242
- Net loss after
income tax of $(5.2) million, as compared to a $(5.3) million loss
in the first quarter of our fiscal year 2024
- Adjusted EBITDA
of $14.0 million as compared to $6.8 million adjusted EBITDA in the
first quarter of our fiscal year 20243
- Cash and cash
equivalents of $90.3 million as of December 31, 2023 and no debt
facilities4
Second Quarter FY24 Operational Highlights
Bitcoin Mining
- Continued expansion
from 5.6 EH/s to 10 EH/s:
- 1.4 EH/s Bitmain S21
miners and 2.9 EH/s Bitmain T21 miners purchased5
- Operating capacity
increased to 6.2 EH/s (as of February 6, 2024)
- Secured pathway to
20 EH/s in 2024 (January 2024):
- 1 EH/s of Bitmain
T21 miners purchased5
- 9 EH/s of Bitmain
T21 miner purchase options5
AI Cloud Services
- Cloud services
contract signed with AI company, Poolside AI SAS (February
2024)
- Tripled cloud
services business to 816 NVIDIA H100 GPUs via an additional
purchase of 568 NVIDIA H100 GPUs which is expected to be installed
in Q2 2024 (February 2024)
Corporate and Development
- Announced 1,400MW
data center development site in West Texas, with $4.7m initial
connection deposit paid and an expected in-service date in late
2026
- $146.0 million cash
and cash equivalents as of February 9, 20244,6
- Rebrand from Iris
Energy to IREN
Webcast and Conference DetailsA live webcast of
the earnings conference call, along with the associated
presentation, may be accessed at
https://investors.irisenergy.co/events-and-presentations and will
be available for replay for one year. |
Time & Date: |
5:00 p.m. USA Eastern Time, Thursday, February 15, 2024 |
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9:00 a.m. Australian Eastern Daylight Time, Friday, February 16,
2024 |
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Participant |
Registration Link |
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Live Webcast |
Use this link |
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Phone Dial-In with Live Q&A |
Use this link |
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Please note, participants joining the conference
call via the phone dial-in option will receive their dial-in
number, passcode and PIN following registration using the link
above. It would be appreciated if all callers could dial in
approximately 5 minutes prior to the scheduled start time.
There will be a Q&A session after the
Company delivers its financial results. Those dialling in via phone
can elect to ask a question via the moderator. Participants on the
live webcast have the ability to pre-submit a question upon
registering to join the webcast or can submit a question during the
live webcast.
Forward-Looking Statements
This press release 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: Bitcoin price and
foreign currency exchange rate fluctuations; Iris Energy’s ability
to obtain additional capital on commercially reasonable terms and
in a timely manner to meet our capital needs and facilitate its
expansion plans; the terms of any future financing or any
refinancing, restructuring or modification to the terms of any
future financing, which could require Iris Energy to comply with
onerous covenants or restrictions, and its ability to service its
debt obligations; Iris Energy’s ability to successfully execute on
its growth strategies and operating plans, including its ability to
continue to develop its existing data center sites and its ability
to diversify into the market for HPC solutions; Iris Energy’s
limited experience with respect to new markets it has entered or
may seek to enter, including the market for HPC solutions;
expectations with respect to the ongoing profitability, viability,
operability, security, popularity and public perceptions of the
Bitcoin network; expectations with respect to the profitability,
viability, operability, security, popularity and public perceptions
of any HPC solutions that Iris Energy offers; Iris Energy’s ability
to secure and retain customers on commercially reasonable terms or
at all, particularly as it relates to its strategy to expand into
HPC solutions; Iris Energy’s ability to manage counterparty risk
(including credit risk) associated with any current or future
customers and other counterparties; Iris Energy’s ability to secure
renewable energy and renewable energy certificates, power capacity,
facilities and sites on commercially reasonable terms or at all;
the risk that any current or future customers or other
counterparties may terminate, default on or underperform their
contractual obligations; Bitcoin network hashrate fluctuations;
delays associated with, or failure to obtain or complete,
permitting approvals, grid connections and other development
activities customary for greenfield or brownfield infrastructure
projects; our reliance on third party mining pools, exchanges,
banks, insurance providers and our ability to maintain
relationships with such parties; expectations regarding
availability and pricing of electricity; Iris Energy’s
participation and ability to successfully participate in demand
response products and services and other load management programs
run, operated or offered by electricity network operators,
regulators or electricity market operators; the availability,
reliability and cost of electricity supply, hardware and electrical
and data center infrastructure, including with respect to any
electricity outages and any laws and regulations that may restrict
the electricity supply available to Iris Energy; any variance
between the actual operating performance of Iris Energy’s hardware
achieved compared to the nameplate performance including hashrate;
Iris Energy’s ability to curtail its electricity consumption and/or
monetize electricity depending on market conditions, including
changes in Bitcoin mining economics and prevailing electricity
prices; actions undertaken by electricity network and market
operators, regulators, governments or communities in the regions in
which Iris Energy operates; the availability, suitability,
reliability and cost of internet connections at Iris Energy’s
facilities; Iris Energy’s ability to secure additional hardware,
including hardware for Bitcoin mining and HPC solutions it may
offer, on commercially reasonable terms or at all, and any delays
or reductions in the supply of such hardware or increases in the
cost of procuring such hardware; expectations with respect to the
useful life and obsolescence of hardware (including hardware for
Bitcoin mining as well as hardware for other applications,
including HPC solutions); delays, increases in costs or reductions
in the supply of equipment used in Iris Energy’s operations; Iris
Energy’s ability to operate in an evolving regulatory environment;
Iris Energy’s ability to successfully operate and maintain its
property and infrastructure; reliability and performance of Iris
Energy’s infrastructure compared to expectations; malicious attacks
on Iris Energy’s property, infrastructure or IT systems; Iris
Energy’s ability to maintain in good standing the operating and
other permits and licenses required for its operations and
business; Iris Energy’s ability to obtain, maintain, protect and
enforce its intellectual property rights and other confidential
information; whether the secular trends Iris Energy expects to
drive growth in its business materialize to the degree it expects
them to, or at all; the occurrence of any environmental, health and
safety incidents at Iris Energy’s sites; any material costs
relating to environmental, health and safety requirements or
liabilities; damage to our property and infrastructure and the risk
that any insurance Iris Energy maintains may not fully cover all
potential exposures; ongoing securities litigation and proceedings
relating to the default by two of Iris Energy’s wholly-owned
special purpose vehicles under limited recourse equipment financing
facilities; ongoing securities litigation relating in part to the
default; and any future litigation, claims and/or regulatory
investigations, and the costs, expenses, use of resources,
diversion of management time and efforts, liability and damages
that may result therefrom; any laws, regulations and ethical
standards that may relate to Iris Energy’s business, including
those that relate to Bitcoin and the Bitcoin mining industry and
those that relate to any other solutions we may offer (such as HPC
solutions), including regulations related to data privacy,
cybersecurity and the storage, use or processing of information;
any intellectual property infringement and product liability
claims; our ability to attract, motivate and retain senior
management and qualified employees; increased risks to our global
operations including, but not limited to, political instability,
acts of terrorism, theft and vandalism, cyberattacks and other
cybersecurity incidents and unexpected regulatory and economic
sanctions changes, among other things; climate change and natural
and man-made disasters that may materially adversely affect our
business, financial condition and results of operations; the
ongoing effects of COVID-19 or any other outbreak of an infectious
disease and any governmental or industry measures taken in
response; our ability to remain competitive in dynamic and rapidly
evolving industries; damage to our brand and reputation; 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, 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.
Non-IFRS Financial Measures
This press release includes non-IFRS financial
measures, including Adjusted EBITDA and Adjusted EBITDA Margin. We
provide Adjusted EBITDA and Adjusted EBITDA Margin in addition to,
and not as a substitute for, measures of financial performance
prepared in accordance with IFRS. There are a number of limitations
related to the use of Adjusted EBTIDA and Adjusted EBITDA Margin.
For example, other companies, including companies in our industry,
may calculate Adjusted EBITDA and Adjusted EBITDA Margin
differently. The Company believes that these measures are important
and supplement discussions and analysis of its results of
operations and enhances an understanding of its operating
performance.
EBITDA is calculated as our IFRS profit/(loss)
after income tax expense, excluding interest income, finance
expense and non-cash fair value loss and interest expense on hybrid
financial instruments, income tax expense, depreciation and
amortization, which are important components of our IFRS
profit/(loss) after income tax expense. Further, “Adjusted EBITDA”
also excludes share-based payments expense, which is an important
component of our IFRS profit/(loss) after income tax expense,
impairment of assets, loss on other receivables, loss on disposal
of assets, foreign exchange gains and losses and other one-time
expenses and income.
Adjusted EBITDA
Reconciliation1(USD$m) |
3 months endedDec 31, 2023 |
3 months endedSep 30, 2023 |
Bitcoin mining revenue |
42.0 |
34.4 |
Other income |
0.5 |
- |
Electricity costs2 |
(16.7) |
(19.4) |
Realized gain on financial asset2 |
0.1 |
3.0 |
Other costs |
(11.9) |
(11.4) |
Adjusted EBITDA |
14.0 |
6.7 |
Adjusted EBITDA
Margin |
33% |
19% |
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Reconciliation to consolidated statement of profit or
loss |
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Add/(deduct): |
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Foreign exchange loss |
(4.7) |
2.2 |
Non-cash share-based payments expense – $75 exercise price
options |
(3.1) |
(3.0) |
Non-cash share-based payments expense |
(2.9) |
(2.8) |
Reversal of impairment of assets |
0.1 |
- |
Unrealized loss on financial asset3 |
(0.3) |
- |
Other expense items4 |
(2.6) |
(0.6) |
EBITDA |
0.6 |
2.5 |
Other finance expense |
- |
(0.1) |
Interest income |
0.7 |
0.7 |
Depreciation |
(7.6) |
(7.6) |
Loss before income tax (expense)/benefit |
(6.3) |
(4.5) |
Income tax (expense)/benefit |
1.1 |
(0.8) |
Loss after income tax (expense)/benefit |
(5.2) |
(5.3) |
1) For further detail, see our unaudited interim financial
statements for the half-year ended December 31, 2023, included in
our Form 6-K filed with the SEC on February 15, 2024.2) Electricity
costs net of realized gain on financial asset was $(16.6)m in 2Q
FY24 and $(16.4)m in 1Q FY24. Realized gain on financial asset
represents unaudited power credits (primarily driven by voluntary
curtailment) earned under hedge contracts.3) Unrealized loss on
financial asset represents the change in the fair value of the
financial asset recorded in relation to electricity purchased for
future usage periods.4) Other expense items include one-off
professional fees including legal fees.
Contacts |
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Media |
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Jon Snowball |
Danielle Ghigliera |
Domestique |
Aircover Communications |
+61 477 946 068 |
+1 510 333 2707 |
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Investors |
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Lincoln Tan |
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Iris Energy |
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+61 407 423 395 |
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lincoln.tan@irisenergy.co |
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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 Reflects electricity costs net of realized gain on financial
asset. Realized gain on financial asset represents unaudited power
credits (primarily driven by voluntary curtailment) earned under
hedge contracts.2 Site and other costs exclude one-off other
expense items. See page 5 for a reconciliation to the nearest IFRS
metric. 3 Adjusted EBITDA is a non-IFRS metric. See page 5 for a
reconciliation to the nearest IFRS metric.4 Reflects USD
equivalent, unaudited cash and cash equivalents as of December 31,
2023 and February 9, 2024 respectively.5 Purchase and fixed option
price of $14/TH excluding shipping and taxes.6 Subsequent to
December 31, 2023, the Company sold 19,660,120 ordinary shares for
aggregate net proceeds of approximately $90.2 million through our
ATM Facility.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/74599b08-7823-4aae-9062-65bac7b0d10e
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