SYDNEY - Iris Energy Limited (NASDAQ: IREN), a renewable energy-based Bitcoin mining company, has announced the achievement of a significant operational milestone, reaching an installed capacity of 20 exahashes per second (EH/s). The company has managed to hit this target ahead of schedule, showcasing the efficiency and dedication of its global team.
The increase in capacity to 20 EH/s, with an energy efficiency of 16 joules per terahash (J/TH), was facilitated through optimization of the company's existing data center infrastructure. Iris Energy also anticipates a further increase to 21 EH/s in the near term.
Construction of Childress Phase 3, a 150-megawatt expansion project, is currently progressing with over 430 workers on-site. This development is part of the company's plan to boost its capacity from 21 EH/s to 31 EH/s by the fourth quarter of 2024. The expansion will involve the deployment of Bitmain S21 XP (NASDAQ:XP) miners, which are expected to be shipped within the next two months.
The company has provided estimates based on a 31 EH/s capacity, projecting an electricity cost of $20,000 per Bitcoin mined and an all-in cash cost of $30,000 per Bitcoin. These figures are based on several assumptions, including a global hashrate of 662 EH/s, a Bitcoin block reward of 3.125, and electricity costs of $0.038/kWh.
Iris Energy emphasizes its commitment to utilizing 100% renewable energy for its operations, which includes Bitcoin mining and AI cloud services. The company has been operational since 2019 and has recently expanded its AI cloud services with NVIDIA (NASDAQ:NVDA) H100 & H200 GPUs.
The press release also contains forward-looking statements regarding the company's future financial and operational performance. These statements involve risks and uncertainties that could cause actual results to differ materially from those projected.
This announcement is based on a press release statement from Iris Energy Limited.
In other recent news, Iris Energy Limited has made significant strides in its operations. The company has announced a substantial investment in its AI Cloud Services division with the acquisition of 1,080 NVIDIA H200 GPUs, valued at $43.9 million. This strategic move is expected to boost Iris Energy's AI Cloud Services earnings to approximately 10% of its total by year-end. The company's current installed capacity for Bitcoin mining stands at 18.8 EH/s, with plans to increase this to 30 EH/s by the fourth quarter of 2024.
Iris Energy's revenue projections for the end of 2024 indicate that AI Cloud Services could generate around $33 million, compared to $460 million from Bitcoin mining. B.Riley adjusted its stock price target for Iris Energy from $17.00 to $12.00, retaining its Buy rating, while Macquarie maintained its Outperform rating, raising the stock's price target to $13.50 from $12.00.
In addition, Iris Energy reported production of 245 BTC in August, marking a 10% month-over-month increase, and achieved an operating hash rate of 16.0 EH/s. The company's AI Cloud services revenue also increased by 2% month-over-month to $15.5 million in August. These recent developments highlight Iris Energy's robust growth in mining and AI cloud services.
InvestingPro Insights
Iris Energy Limited's (NASDAQ: IREN) recent achievement of reaching an installed capacity of 20 exahashes per second is a testament to the company's growth trajectory and operational efficiency. The InvestingPro data further highlights the company's financial and market performance, which could be of interest to investors monitoring IREN's progress.
According to InvestingPro data, Iris Energy has a market capitalization of $1.42 billion and has shown an impressive revenue growth of approximately 150% over the last twelve months as of Q4 2024. This significant increase in revenue is complemented by a robust gross profit margin of 88.24%, indicating the company's ability to maintain profitability in its operations despite the capital-intensive nature of Bitcoin mining.
However, the company's P/E ratio stands at -27.22, reflecting investor concerns about its current profitability. The negative value suggests that Iris Energy is not generating net income at the moment, which is consistent with the InvestingPro Tip that the company has not been profitable over the last twelve months. Despite this, analysts predict that the company will be profitable this year, which could signal a turning point for the firm's financial health.
Another InvestingPro Tip points to the company's high stock price volatility, which is evident from the price movements over the last three months, experiencing a significant drop of 43.45%. This volatility might attract traders looking for short-term opportunities but could also indicate a higher risk for long-term investors.
For investors seeking more insights, InvestingPro offers additional tips on Iris Energy, which can be found at https://www.investing.com/pro/IREN. Currently, there are 16 further InvestingPro Tips available, providing a deeper analysis of the company's financial health and market performance.
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