Iris Energy Limited (NASDAQ: IREN) (together with its subsidiaries,
“Iris Energy” or “the Company”), a leading owner and operator of
institutional-grade, highly efficient Bitcoin mining data centers
powered by 100% renewable energy, today announced it is increasing
its self-mining capacity by 25% from 5.6 EH/s to 7.0 EH/s.
Key Highlights
- Acquisition of 1.4
EH/s of latest-generation Bitmain S21 miners
- Self-mining capacity
increasing by 25% to 7.0 EH/s
- Leading 17.5 J/TH
efficiency to improve resilience post-halving
- $19.6 million
purchase price ($14/TH)1 – $2.9 million deferred until one year
after shipment
- Expected to be
installed at the Company’s site in Childress, Texas
- Near-term expansion
increased to 9.4 EH/s2
Iris Energy has partnered with Bitmain
Technologies Delaware Limited (“Bitmain”) to acquire approximately
7,000 latest-generation Bitmain S21 miners. Shipping is scheduled
for early 2024, increasing the Company’s self-mining capacity from
5.6 EH/s to 7.0 EH/s – an increase of 25%.
Bitmain’s S21 miners exhibit industry-leading
efficiency (at 17.5 J/TH), thereby increasing:
- fleet resilience
post-halving;
- capital efficiency
of data centers (increased revenue per data center); and
- upside to Bitcoin
(higher hashrate per data center than previously anticipated).
$16.7 million ($11.9/TH) of the purchase price
will be paid prior to shipment. The remaining 15% of the purchase
price (~$2.9 million or $2.1/TH) is deferred until one year after
shipment.
The purchase is expected to be funded from
existing capital sources, including cash in bank (~$64 million, no
debt)3, operating cash flow and other recently disclosed funding
programs (as applicable).
The Company’s 80MW expansion at Childress
remains on track, with data centers expected to be delivered
progressively from early 2024.
The Company is now targeting near-term expansion
in potential operating capacity of up to 9.4 EH/s (previously 9.1
EH/s)2 and continues to monitor the market for additional hardware
acquisition opportunities.
The Company continues to progress its single
site expansion program to 30 EH/s2,4.
About Iris Energy
Iris Energy is a sustainable Bitcoin mining
company that supports the decarbonization of energy markets and the
global Bitcoin network.
- 100% renewables: Iris Energy
targets sites with low-cost, under-utilized renewable energy, and
supports local communities
- Long-term security over
infrastructure, land and power supply: Iris Energy builds, owns and
operates its electrical infrastructure and proprietary data
centers, providing long-term security and operational control over
its assets
- Seasoned management team: Iris
Energy’s team has an impressive track record of success across
energy, infrastructure, renewables, finance, digital assets and
data centers with cumulative experience in delivering >$25bn in
energy and infrastructure projects globally
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 to increase
its diversification into the market for potential 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 potential HPC solutions that Iris Energy
may offer in the future; Iris Energy’s ability to secure customers
on commercially reasonable terms or at all, particularly as it
relates to its potential expansion into HPC solutions; Iris
Energy’s ability to manage counterparty risk (including credit
risk) associated with potential 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
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 potential 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 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
potential 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 press release. Any
forward-looking statement that Iris Energy makes in this press
release 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.
Contacts
MediaJon SnowballDomestique+61 477 946 068
InvestorsLincoln TanIris Energy+61 407 423
395lincoln.tan@irisenergy.co
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 Purchase price excludes
shipping and taxes and is net of Bitmain bonuses and coupon
programs.2 Assumes future purchase and installation of Bitmain S19
XP miners (beyond the announced 1.4 EH/s of Bitmain S21 miners).
Additional miners have not yet been purchased and the Company will
continue to monitor the market for funding and purchase
opportunities. Hashrate figures may change depending on miner
procurement selection. There can be no assurance that Iris Energy
will be able to procure any additional miners at all, or on terms
that are favorable to Iris Energy.3 Reflects USD equivalent,
unaudited preliminary cash, cash equivalents and term deposits as
of September 30, 2023.4 Illustrates potential Iris Energy hashrate
if Childress is fully built-out to 600MW (i.e. 760MW of Company
aggregate power capacity). There can be no assurance that Iris
Energy achieves this capacity.
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