SYDNEY - IREN (NASDAQ: IREN), a company specializing in next-generation data center operations, has released its investor update for April 2024, highlighting recent developments in Bitcoin mining, AI cloud services, and data center expansion.
The company mined 358 Bitcoin in April and reported an operating hashrate of 9.4 exahashes per second (EH/s), with expectations to reach 10 EH/s shortly. This operational milestone comes as part of IREN's expansion plan, which is progressing ahead of schedule and is fully funded with a target to achieve 20 EH/s by the second half of 2024.
In the realm of AI cloud services, IREN has deployed 816 NVIDIA (NASDAQ:NVDA) H100 GPUs at its Prince George data center. The company has also doubled its agreement with Poolside Data Centers, indicating growth in its AI cloud services segment. These GPUs are estimated to generate approximately $14 to $17 million in annualized hardware profit, with a payback period of around 24 months.
IREN's data center capacity is set to increase to 510 megawatts (MW) by 2024, with an upsized expansion at its Childress Phase 3 site by an additional 50MW. This increase will support the company's growth beyond the anticipated 20 EH/s hashrate. Currently, IREN operates several data centers in Canada and the USA, with a total operating capacity of 245MW and 9.4 EH/s.
The company's financial results for the third quarter of the fiscal year 2024 will be released on May 15, 2024. IREN will host a conference call to discuss the results, and interested parties can register for the webcast.
IREN's growth is underpinned by its focus on renewable energy, with its data centers powered by 100% renewable sources, including direct renewable energy and renewable energy certificates (RECs). The company's commitment to sustainability is reflected in its usage of 222MW of renewable energy for Bitcoin mining operations.
The investor update also outlines a series of upcoming events where IREN will present, including tech and media conferences throughout May 2024. This announcement is based on a press release statement by IREN.
InvestingPro Insights
As IREN (NASDAQ: IREN) continues to make strides in the data center and cryptocurrency mining industries, financial metrics and expert insights provide a deeper understanding of the company's market position and future potential. With a market capitalization of $667.38 million, IREN demonstrates a significant presence in the sector. According to InvestingPro data, the company has achieved a remarkable revenue growth of 109.69% over the last twelve months as of Q2 2024, signaling strong business expansion.
Despite not being profitable over the last twelve months, with a P/E ratio of -21.02 and an adjusted P/E ratio of -24.69, IREN showcases impressive gross profit margins at 85.52%. This high margin reflects the company's efficiency in managing its cost of goods sold relative to its sales. Moreover, IREN's stock price has experienced a substantial increase, with a six-month price total return of 41.62%, highlighting a period of positive investor sentiment.
InvestingPro Tips suggest that IREN holds more cash than debt on its balance sheet, which is a reassuring sign of financial stability for investors. Additionally, analysts anticipate sales growth in the current year, which could further propel the company's revenue trajectory. For those seeking more in-depth analysis, InvestingPro offers additional tips on the company's financial health and market outlook. Visit Investing.com/pro/IREN for a comprehensive list of 12 InvestingPro Tips to inform your investment decisions. Remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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