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 full year ended June
30, 2024. All $ amounts are in United States Dollars (“USD”) unless
otherwise stated.
“We are pleased to report our full year FY24 results, which
highlights continued growth across revenue, earnings and cashflow,”
said Daniel Roberts, Co-Founder and Co-CEO of IREN. “Our 2024
guidance remains unchanged. With 15 EH/s installed, we are well on
track to achieve our 20 EH/s milestone next month and 30 EH/s this
year.”
Full Year FY24 Results
- EBITDA of $19.6
million, as compared to $(123.2) million in fiscal year 20231
- Adjusted EBITDA of
$54.7 million, as compared to $1.4 million in fiscal year
20231
- Record Bitcoin
mining revenue of $184.1 million, as compared to $75.5 million in
fiscal year 2023, driven by growth in operating hashrate and higher
Bitcoin prices
- Record 4,191 Bitcoin
mined, as compared to 3,259 Bitcoin in fiscal year 2023, primarily
driven by growth in operating hashrate
- AI Cloud Services
revenue of $3.1 million, servicing multiple customers across the
reserved and on-demand market
- Net electricity
costs2 of $76.0 million, as compared to $35.8 million in fiscal
year 2023, primarily driven by an increase in operating hashrate,
with 80MW of additional capacity commissioned during the year
- Other costs of $56.5
million, as compared to $38.4 million in fiscal year 20233
- Reflects a larger
business today that is delivering significant growth, and
projecting continued expansion over the coming years
- Procurement of RECs,
consistent with our commitment to utilizing 100% renewable
energy
- Additional head
office resources to support growth, and expanded risk, compliance
and reporting obligations
- Increased site
expenses to support design, management and delivery of our
Childress operations
- Includes $6.3
million provision for Canadian non-refundable sales tax
- Net loss after
income tax of $29.0 million, as compared to a loss of $171.9
million in fiscal year 2023
- Operating cash
inflow of $52.7 million, as compared to $6.0 million in fiscal year
2023
- Cash and cash
equivalents of $404.6 million as of June 30, 2024 and no debt
facilities4
Recent Operational Highlights
Data Centers
- Morgan Stanley
process to evaluate AI data center opportunities in relation to
1.4GW West Texas site underway:
- Non-disclosure
agreements signed
- Information being
provided to interested parties
- Colocation, AI Cloud
Services and other structures also being discussed with prospective
partners in relation to British Columbia and Childress sites
- Increased
grid-connected power secured from 760MW to 2,310MW over the last 12
months
- Date center
expansion to 510MW in 2024
- Childress Phase 2
(100MW, 3Q CY24) – 100MW substation energized, 40MW data centers
commissioned
- Childress Phase 3
(150MW, 4Q CY24) – Foundational, structural and electrical works
ongoing for 6 x 25MW data centers
Bitcoin Mining
- Increased
self-mining capacity from 5.6 EH/s to 10 EH/s through FY245
- Successful
transition to spot pricing from August 2024
- Historically
challenging for energy retailers to provide spot power to Bitcoin
miners
- Scale and
demonstrated robustness of IREN curtailment systems has now enabled
transition to a spot pricing contract effective August 1, 2024
- Spot pricing with
curtailment allows IREN to optimize power costs in real-time,
avoiding prior hedging costs and risks
- One-off cost of $7.2
million to close out August and September 2024 hedges
- Childress August
2024 month-to-date electricity cost of 3.1 c/kWh (~$23k electricity
cost per Bitcoin mined)6
- On track for 30 EH/s
in 2024
- 15 EH/s installed
(August 28, 2024)
- 20 EH/s next month,
30 EH/s in next 4 months (fully funded)
- Secured 10.5 EH/s of
latest-generation Bitmain S21 XP miners
- Purchase price of
$21.5/TH,7 with 20% deferred until 9 months after shipping
- Shipping scheduled
for October and November 2024, to support expansion to 30 EH/s
- Improves overall
nameplate fleet efficiency to 15 J/TH at 30 EH/s
- Supports indicative
electricity cost per Bitcoin mined of ~$19k8 at 30 EH/s
- Pathway from 30 EH/s
to 50 EH/s secured via existing Bitmain S21 Pro miner purchase
options
- Purchase price of
$18.9/TH9 (option fee of 10% of purchase price)
- Options expiring in
March 2025 and May 2025
AI Cloud Services
- 816 NVIDIA H100
GPUs, servicing multiple customers
- AI Cloud Services
revenue continues to scale
- Launching Childress
GPU pilot in H2 2024
- Poolside recently
extended contract, expected to roll-off August 30, 2024:
- Consolidating
clusters with other providers for strategic reasons
- Continuing to
provide testimonials and customer references
- Strong customer
demand and pipeline
Corporate
- The Full Year FY24
Results webcast will be recorded, and the replay will be accessible
shortly after the event at
https://iren.com/investor/events-and-presentations
Non-IFRS metric reconciliation
Adjusted EBITDA
Reconciliation(USD$m)1 |
Year ended June 30, 2024 |
Year ended June 30, 2023 |
Bitcoin mining revenue |
184.1 |
|
75.5 |
|
AI Cloud Service revenue |
3.1 |
|
- |
|
Other income |
1.6 |
|
- |
|
Electricity charges |
(81.6) |
|
(35.8) |
|
Realized gain on financial asset |
4.1 |
|
- |
|
Other costs |
(56.5) |
|
(38.4) |
|
Adjusted EBITDA |
54.7 |
|
1.4 |
|
Adjusted EBITDA Margin |
29% |
|
2% |
|
|
|
|
Reconciliation to consolidated statement of profit or
loss |
|
|
Add/(deduct): |
|
|
Unrealized loss on financial asset |
(3.4) |
|
- |
|
Share-based payment expense - $75 exercise price options |
(11.8) |
|
(12.2) |
|
Share-based payment expense - other |
(11.8) |
|
(2.2) |
|
Impairment of assets |
- |
|
(105.2) |
|
Reversal of impairment of assets |
0.1 |
|
- |
|
Foreign exchange loss |
(4.7) |
|
(0.2) |
|
Other non-recurring income |
- |
|
3.1 |
|
Gain on disposal of subsidiaries |
- |
|
3.3 |
|
Gain/(loss) on disposal of property, plant and equipment |
0.0 |
|
(6.6) |
|
Other expense items2 |
(3.5) |
|
(4.6) |
|
EBITDA |
19.6 |
|
(123.2) |
|
Finance expense |
(0.3) |
|
(16.4) |
|
Interest income |
5.8 |
|
0.9 |
|
Depreciation |
(50.7) |
|
(30.9) |
|
Loss before income tax expense for the period |
(25.5) |
|
(169.5) |
|
Income tax expense |
(3.5) |
|
(2.4) |
|
Loss after income tax expense for the period |
(29.0) |
|
(171.9) |
|
1) For further detail, see our audited financial statements for
the year ended June 30, 2024, included in our Form 20-F filed with
the SEC on August 28, 2024.2) Other expense items include one-off
professional fees including legal fees.
Reconciliation of Electricity charges to Net electricity
costs(USD$m) |
Year endedJune 30, 2024 |
Year endedJune 30, 2023 |
Electricity charges |
(81.6) |
(35.8) |
Add/(deduct) the following: |
|
- |
Realized gain on financial asset |
4.1 |
- |
ERS revenue (included in Other income) |
1.6 |
- |
ERS fees (included in Other operating expenses) |
(0.1) |
- |
Net electricity costs1 |
(76.0) |
(35.8) |
1) Net electricity costs exclude the cost of Renewable Energy
Certificates (RECs).
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 its
business operations and adversely impact its 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 and expand into the market for high
performance computing (“HPC”) solutions it may offer (including the
market for AI Cloud Services); IREN’s limited experience with
respect to new markets it has entered or may seek to enter,
including the market for HPC solutions (including 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 and future HPC solutions
(including 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
markets for HPC solutions (including AI Cloud Services); IREN’s
ability to manage counterparty risk (including credit risk)
associated with any current or future customers, including
customers of its HPC solutions (including AI Cloud Services) and
other counterparties; the risk that any current or future
customers, including customers of its HPC solutions (including AI
Cloud Services), or other counterparties may terminate, default on
or underperform their contractual obligations; Bitcoin global
hashrate fluctuations; IREN’s ability to secure renewable energy,
renewable energy certificates, power capacity, facilities and sites
on commercially reasonable terms or at all; delays associated with,
or failure to obtain or complete, permitting approvals, grid
connections and other development activities customary for
greenfield or brownfield infrastructure projects; IREN’s reliance
on power and utilities providers, third party mining pools,
exchanges, banks, insurance providers and its 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 HPC solutions (including 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 HPC solutions (including 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’s 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; any pending or future acquisitions,
dispositions, joint ventures or other strategic transactions; 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 IREN’s
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 it offers, including laws and
regulations related to data privacy, cybersecurity, the storage,
use or processing of information and consumer laws; IREN’s ability
to attract, motivate and retain senior management and qualified
employees; increased risks to IREN’s 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 IREN’s
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; IREN’s ability to remain competitive in dynamic and
rapidly evolving industries; damage to IREN’s brand and reputation;
expectations relating to Environmental, Social or 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 August 28,
2024 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), and excludes the cost of Renewable
Energy Certificates (RECs).
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: 300MW 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: 2,310MW of grid-connected power secured 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 EBITDA and Adjusted EBITDA are non-IFRS metrics. See page 4
for a reconciliation to the nearest IFRS metric.2 Net electricity
cost is a non-IFRS metric. See page 4 for a reconciliation to the
nearest IFRS metric.3 Other costs exclude one-off other expense
items. See page 4 for a reconciliation to the nearest IFRS metric.4
Reflects USD equivalent, audited cash and cash equivalents as of
June 30, 2024.5 Comparative period: June 2023 vs. June 2024
self-mining.6 Childress August 2024 month-to-date electricity cost
and cost per Bitcoin mined calculated between August 1 - 22, 2024
and based on actual Bitcoin mined, energy usage and real-time power
prices in ERCOT West Load Zone, including net ERS revenue, ERCOT,
retail electric provider (REP) and network fees, and adjusted for
now eligible 4CP benefit.7 Purchase price excludes shipping and
taxes.8 Cost per bitcoin mined represents indicative electricity
cost per bitcoin mined assuming 30 EH/s, nameplate fleet efficiency
of 15 J/TH, weighted average power cost of $0.04/kWh ($0.045/kWh in
BC and $0.037/kWh in Texas – latter calculated using actual monthly
average net power price at Childress during FY24 (with hedging and
curtailment), including net ERS revenue and adjusted for now
eligible 4CP benefit), current global hashrate of 621.7 EH/s, block
reward of 3.125 BTC per block and transaction fees of 0.1 BTC per
block.9 Purchase price excludes shipping and taxes.
Iris Energy (NASDAQ:IREN)
Historical Stock Chart
From Jul 2024 to Aug 2024
Iris Energy (NASDAQ:IREN)
Historical Stock Chart
From Aug 2023 to Aug 2024