IREN (Iris Energy Limited) (NASDAQ: IREN) (together with its
subsidiaries, "IREN" or “the Company”), a leading next-generation
data center business powering the future of Bitcoin, AI and beyond,
today reported its financial results for the three-months and
nine-months ended March 31, 2024. All $ amounts are in United
States Dollars (“USD”) unless otherwise stated.
“We are pleased to report our third quarter FY24 results, where
we achieved record revenue and Adjusted EBITDA. Additionally, we
have generated a record $47.9 million in operating cashflow so far
this financial year, reflecting the quality of our underlying
operations,” said Daniel Roberts, Co-Founder and Co-CEO of
IREN.
“Our team continues to execute, achieving our 10 EH/s milestone
ahead of schedule and now increasing our 2024 expansion plans from
20 EH/s to 30 EH/s. We believe the strategic investments we have
made in land, power and infrastructure provide a clear pathway to
industry leadership.”
Third Quarter FY24 Results
- Bitcoin mining
revenue of $53.4 million, as compared to $42.0 million in the
second quarter of fiscal year 2024, driven by growth in operating
hashrate and higher Bitcoin prices
- Net profit after
income tax of $8.6 million, as compared to a loss of $5.2 million
in the second quarter of our fiscal year 2024
- AI Cloud Services
revenue of $0.6 million, following the commissioning of 248 NVIDIA
H100 GPUs during the quarter for our customer, Poolside AI, a
leading AI company
- Mined 1,003 Bitcoin,
as compared to 1,144 Bitcoin in the second quarter of our fiscal
year 2024. Lower Bitcoin production was primarily driven by higher
global hashrate rate during the period
- Net electricity
costs of $19.4 million, as compared to $16.1 million in the second
quarter of our fiscal year 2024, primarily driven by an increase in
operating hashrate in the quarter1
- Other costs of $12.9
million, as compared to $12.0 million in the second quarter of
fiscal year 20242
- Adjusted EBITDA of
$21.8 million, as compared to $13.9 million in the second quarter
of our fiscal year 20243
- Year to date
operating cash inflow of $47.9 million, as compared to an outflow
of $1.0 million in the nine-months ended March 31, 2023
- Cash and cash
equivalents of $259.7 million as of March 31, 2024 and no debt
facilities4
Recent Operational Highlights
Bitcoin Mining
- Operating capacity
currently 10 EH/s (May 2024) vs. 5.6 EH/s (December 2023)
- 2024 expansion plans
increased to 30 EH/s
- Secured
latest-generation Bitmain S21 Pro miners with nameplate efficiency
of 15 J/TH
- Upon completion,
nameplate fleet efficiency of 16 J/TH and indicative electricity
cost per Bitcoin mined of $17k5
- Funding through
existing cash and other sources6
- Additional Bitmain
S21 Pro miner purchase options (10 EH/s) supporting expansion
pathway to 40 EH/s in 1H 2025.
AI Cloud Services
- 816 NVIDIA H100 GPUs
- Upsized (doubled to
504 GPUs) and extended our AI Cloud Services agreement with
Poolside AI
- Testing on-demand
market for our AI Cloud Services
Data Centers
- 510MW of planned
data center capacity by the end of 2024
- Increase from previous planned data center capacity of 460MW,
enabled partly through a new substation design, as well as ongoing
improvement and optimization of the Company’s construction and
procurement process.
- 2,160MW of secured
power capacity
Corporate
- $321.5 million cash
and cash equivalents as of April 30, 20244
- The Third Quarter
FY24 Results webcast will be recorded, and the replay will be
accessible shortly after the event at
https://iren.com/investor/events-and-presentations
Non-IFRS metric reconciliation
Adjusted EBITDA
Reconciliation(USD$m)
1 |
3 months endedMar 31, 2024 |
3 months endedDec 31, 2023 |
Bitcoin mining revenue |
53.4 |
42.0 |
AI Cloud Services Revenue |
0.6 |
- |
Other income |
0.4 |
0.5 |
Electricity charges |
(19.8) |
(16.7) |
Realized gain/(loss) on financial asset |
0.1 |
0.1 |
Other costs |
(12.9) |
(12.0) |
Adjusted EBITDA |
21.8 |
13.9 |
Adjusted EBITDA
Margin |
40% |
33% |
|
|
|
Reconciliation to consolidated statement of profit or
loss |
|
|
Add/(deduct): |
|
|
Reversal of impairment of assets |
- |
0.1 |
Share-based payments expense - $75 exercise price options |
(2.9) |
(3.0) |
Share-based payments expense – other |
(2.9) |
(2.9) |
Foreign exchange gain/(loss) |
4.7 |
(4.7) |
Other expense items2 |
(0.2) |
(2.5) |
Unrealized gain/(loss) on financial asset3 |
(1.1) |
(0.3) |
EBITDA |
19.4 |
0.6 |
Other finance expense |
(0.1) |
0.0 |
Interest income |
1.5 |
0.7 |
Depreciation |
(8.7) |
(7.6) |
Profit/(loss) before income tax for the
period |
12.1 |
(6.3) |
Income tax (expense)/benefit |
(3.5) |
1.1 |
Profit/(loss) after income tax for the period |
8.6 |
(5.2) |
1) For further detail, see our unaudited interim financial
statements for the nine months ended March 31, 2024, included in
our Form 6-K filed with the SEC on May 15, 2024.2) Other expense
items include one-off professional fees including legal fees.3)
Unrealized loss on financial asset represents the change in the
fair value of the financial asset recorded in relation to
electricity purchased for future usage periods.
Reconciliation of Electricity charges to Net electricity
costs(USD$m) |
3 months endedMar 31, 2024 |
3 months endedDec 31, 2023 |
Electricity charges |
(19.8) |
(16.7) |
Add/(deduct) the following: |
|
|
Realized gain/(loss) on financial asset |
0.1 |
0.1 |
ERS revenue (included in Other income) |
0.4 |
0.5 |
ERS fees (included in Other operating expenses) |
(0.0) |
(0.0) |
Net electricity costs |
(19.4) |
(16.1) |
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 IREN’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 IREN’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; IREN’s ability to obtain additional capital on
commercially reasonable terms and in a timely manner to meet its
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 IREN to
comply with onerous covenants or restrictions, and its ability to
service its debt obligations, any of which could restrict our
business operations and adversely impact our financial condition,
cash flows and results of operations; IREN’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 to diversify into the market for high performance
computing (“HPC”) solutions, and in particular any current or
future AI Cloud (“AI Cloud”) Services we offer; IREN’s limited
experience with respect to new markets it has entered or may seek
to enter, including the market for AI Cloud Services; 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
current or future AI Cloud Services that IREN offers; IREN’s
ability to secure and retain customers on commercially reasonable
terms or at all, particularly as it relates to its strategy to
expand into AI Cloud Services; IREN’s ability to manage
counterparty risk (including credit risk) associated with any
current or future customers, including customers of our AI Cloud
Services and other counterparties; IREN’s ability to secure
renewable energy, renewable energy certificates, power capacity,
facilities and sites on commercially reasonable terms or at all;
the risk that any current or future customers, including customers
of our AI Cloud Services, or other counterparties may terminate,
default on or underperform their contractual obligations; Bitcoin
global 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 power and utilities
providers, third party mining pools, exchanges, banks, insurance
providers and our ability to maintain relationships with such
parties; expectations regarding availability and pricing of
electricity; IREN’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/or 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
IREN; any variance between the actual operating performance of
IREN’s miner hardware achieved compared to the nameplate
performance including hashrate; IREN’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 IREN operates; the
availability, suitability, reliability and cost of internet
connections at IREN’s facilities; IREN’s ability to secure
additional hardware, including hardware for Bitcoin mining and any
current or future AI Cloud Services it offers, 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 any current or
future AI Cloud Services IREN offers); delays, increases in costs
or reductions in the supply of equipment used in IREN’s operations;
IREN’s ability to operate in an evolving regulatory environment;
IREN’s ability to successfully operate and maintain its property
and infrastructure; reliability and performance of IREN’s
infrastructure compared to expectations; malicious attacks on
IREN’s property, infrastructure or IT systems; IREN’s ability to
maintain in good standing the operating and other permits and
licenses required for its operations and business; IREN ability to
obtain, maintain, protect and enforce its intellectual property
rights and confidential information; any intellectual property
infringement and product liability claims; whether the secular
trends IREN 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 IREN’s sites, and any
material costs relating to environmental, health and safety
requirements or liabilities; damage to our property and
infrastructure and the risk that any insurance IREN maintains may
not fully cover all potential exposures; ongoing proceedings
relating to the default by two of IREN’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; IREN's failure to comply with any laws
including the anti-corruption laws of the United States and various
international jurisdictions; any failure of IREN's compliance and
risk management methods; any laws, regulations and ethical
standards that may relate to IREN’s business, including those that
relate to Bitcoin and the Bitcoin mining industry and those that
relate to any other services we offer (such as AI Cloud Services),
including regulations related to data privacy, cybersecurity and
the storage, use or processing of information; 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, severe weather conditions and natural and
man-made disasters that may materially adversely affect our
business, financial condition and results of operations; public
health crises, including an outbreak of an infectious disease (such
as COVID-19) 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;
expectations relating to Environmental, Social and Governance
issues or reporting; the costs of being a public company; and other
important factors discussed under the caption “Risk Factors” in
IREN’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 IREN’s website at
https://investors.iren.com.
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 IREN makes in this investor update speaks only as of
the date of such statement. Except as required by law, IREN
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 Net electricity costs, Adjusted EBITDA and Adjusted
EBITDA Margin. We provide these measures 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 Net
electricity costs, Adjusted EBTIDA and Adjusted EBITDA Margin. For
example, other companies, including companies in our industry, may
calculate these measures 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, foreign exchange
gains and losses, impairment of assets, certain other non-recurring
income, loss on disposal of property, plant and equipment, gain on
disposal of subsidiaries, unrealized fair value gains and losses on
financial assets and certain other expense items.
Net electricity costs is calculated as our IFRS Electricity
charges net of Realized gain/(loss) on financial asset, ERS revenue
(included in Other income) and ERS fees (included in Other
operating expenses).
About IREN
IREN is a leading next-generation data center business powering
the future of Bitcoin, AI and beyond utilizing 100% renewable
energy.
- Bitcoin Mining:
providing security to the Bitcoin network, expanding to 30 EH/s in
2024. Operations since 2019.
- AI Cloud Services:
providing cloud compute to AI customers, 816 NVIDIA H100 GPUs.
Operations since 2024.
- Next-Generation Data
Centers: 260MW of operating data centers, expanding to 510MW in
2024. Specifically designed and purpose-built infrastructure for
high-performance and power-dense computing applications.
- Technology:
technology stack for performance optimization of AI Cloud Services,
Bitcoin Mining and energy trading operations.
- Development
Portfolio: 2,160MW of secured power capacity across North America,
>1,000 acre property portfolio and additional development
pipeline.
- 100% Renewable
Energy (from clean or renewable energy sources or through the
purchase of RECs): targets sites with low-cost & underutilized
renewable energy, and supports electrical grids and local
communities.
Contacts
MediaJon Snowball Domestique +61 477 946
068Danielle GhiglieraAircover Communications+1 510 333 2707 |
InvestorsLincoln Tan IREN+61 407 423 395
lincoln.tan@iren.com |
To keep updated on IREN’s news releases and SEC filings, please
subscribe to email alerts at
https://iren.com/investor/ir-resources/email-alerts.
_____________________
1 Net electricity cost is a non-IFRS metric. See page 3 for a
reconciliation to the nearest IFRS metric.2 Other costs exclude
one-off other expense items. See page 3 for a reconciliation to the
nearest IFRS metric.3 Adjusted EBITDA is a non-IFRS metric. See
page 3 for a reconciliation to the nearest IFRS metric.4 Reflects
USD equivalent, unaudited cash and cash equivalents as of March 31,
2024 and April 30, 2024 respectively.5 Cost per bitcoin mined
represents indicative electricity cost per bitcoin mined assuming
30 EH/s, nameplate fleet efficiency of 16 J/TH, weighted average
power cost of $0.037/kWh ($0.045/kWh in BC and $0.033/kWh in Texas
– latter calculated using actual monthly average net power price at
Childress during FY24 to date (i.e. July 2023 to March 2024),
including ERS revenue and adjusted for now eligible 4CP benefit),
current global hashrate of 595 EH/s, block reward of 3.125 BTC per
block and transaction fees of 0.3 BTC per block.6 The Company
continues to consider a range of funding opportunities such as
equity, corporate debt and equipment financing.
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