Iris Energy Limited (NASDAQ: IREN) ("Iris Energy" or "the
Company"), a leading owner and operator of institutional-grade,
highly efficient proprietary Bitcoin mining data centers powered by
100% renewable energy, today published a monthly investor update
for November 2023, containing its results from operations as
well as business updates.
Key Highlights1
Key metrics2 |
Nov-23 |
Average operating hashrate (PH/s) |
5,551 |
Bitcoin mined |
369 |
Mining revenue (US$’000) |
13,714 |
Electricity costs (US$’000)3 |
5,730 |
Revenue per Bitcoin (US$) |
37,155 |
Electricity costs per Bitcoin (US$) |
15,524 |
- Expansion on track to 10
EH/s4
- Acquired 1.3 EH/s
of new-generation Bitmain T21 miners (19 J/TH)
- $14/TH5 purchase
price, with 20% deferred
- Improves overall
fleet efficiency to 25.8 J/TH
- Self-mining
capacity expanded to 8.3 EH/s
- 5.6 EH/s
operating
- 1.4 EH/s Bitmain
S21 miners (Q1 2024)
- 1.3 EH/s Bitmain
T21 miners (Q1 2024)
- Investor
update conference call
- Cloud and
colocation customer conversations underway
- New 1,400MW data
center development site in West Texas (late 2026 expected
in-service date)
- Childress
construction (Phase 1, first 100MW)
- DC 2: racking and
electrical installation ongoing
- DC 3: structure
complete; racking and electrical installation commenced
- DC 4: concrete
foundations complete; building structure commenced
- DC 5: concrete
foundations commenced
Corporate update
Expansion on track to 10 EH/s
On November 30, 2023, the Company announced the
acquisition of 1.3 EH/s of new-generation Bitmain T21 miners for
$14/TH5 ($18.6 million), of which 20% is deferred.
The Company’s 80MW data center expansion at
Childress remains on track to be progressively delivered from
January 2024 through to Q2 2024, supporting an increase in total
Company operating capacity to 10 EH/s4.
The newly acquired S21 (17.5 J/TH) and T21 (19
J/TH) miners are scheduled to be shipped during Q1 2024 and, once
installed, will:
-
Increase operating hashrate by 48% from 5.6 EH/s to 8.3 EH/s
-
Improve overall fleet efficiency from 29.5 J/TH to 25.8 J/TH
The update can be accessed via the following
link.
Investor update conference call
On November 21, 2023, the Company hosted an
investor update conference call.
The key updates included:
-
Cloud and colocation: customer conversations underway
-
New 1,400MW data center development site in West Texas (late 2026
expected in-service date)
The presentation and webcast replay can be
accessed via the following link.
Canal Flats update (0.8 EH/s, 30MW
capacity) – BC, Canada
Canal Flats has been powered by 100% renewable
energy since inception6.
The project achieved average monthly operating
hashrate of 840 PH/s in November compared to 841 PH/s last
month.
Mackenzie update (2.6 EH/s, 80MW
capacity) – BC, Canada
Mackenzie has been powered by 100% renewable
energy since inception6.
The project achieved average monthly operating
hashrate of 2,583 PH/s in November compared to 2,581 PH/s last
month.
Prince George update (1.6 EH/s, 50MW
capacity) – BC, Canada
Prince George has been powered by 100% renewable
energy since inception6.
The project achieved average monthly operating
hashrate of 1,555 PH/s in November compared to 1,610 PH/s last
month.
Childress update (0.6 EH/s, 20MW
operating / 80MW under construction) – Texas, USA
Childress has been powered by 100% renewable
energy since inception via the purchase of RECs.
The project achieved average monthly operating
hashrate of 573 PH/s in November compared to 539 PH/s last
month.
Construction for the remainder of Phase 1
(100MW) remains on track to be progressively delivered from January
2024:
- DC 1: operating
since April 2023
-
DC 2: racking and electrical installation ongoing
-
DC 3: structure complete; racking and electrical installation
commenced
-
DC 4: concrete foundations complete; building structure
commenced
-
DC 5: concrete foundations commenced
The Company’s ownership of key infrastructure
and significant land holdings provides a rapid and efficient growth
pathway, with 600MW of total power capacity immediately available
at the site.
Community engagement
Iris Energy was pleased to host the second
annual Community Grants Recipient Event in Childress, Texas. The
event hosted over 100 attendees and aimed to support the local
community by funding the organizations that work to make a
difference in the Childress community. The Company presented over
$80,000 to fifteen local non-profit organizations including Meals
on Wheels (which provides meals to the elderly) and funding for
chemistry labs at the local high school.
Future development sites
Iris Energy provided a project development
update following the signing of a connection agreement and payment
of an initial connection deposit in relation to a new 1,400MW data
center development site in West Texas to target various data center
computing applications. Land for the project is secured under
exclusive purchase options and the in-service date for the utility
connection is expected late 2026. The project supports the
Company’s core strategy to secure high electrical capacity sites in
areas with excess renewable generation.
In addition to the Company’s now 2,160MW of
announced power capacity, development works also continued across
additional sites in Canada, the USA and Asia-Pacific, which have
the potential to support up to an additional >1,000MW of
aggregate capacity.
Operating and financial results
Daily average operating hashrate chart is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/867f6100-69a8-4d82-b57a-87fa5d4d99d0
Technical commentary
The Company’s average operating hashrate was
5,551 PH/s in November (compared to 5,571 PH/s in October). The
Company recorded higher revenue ($13.7m vs. $11.2m in October)
which was driven by a higher average realised price per Bitcoin
mined. The decrease in Bitcoin mined was primarily attributable to
less days in November and an increase in network difficulty, which
was mostly offset by the benefit of higher network transaction
fees. The electricity costs per Bitcoin mined remained relatively
stable, noting the Company retains flexibility to reduce future
power costs through adjusting miner output in response to changes
in mining economics.
Operating |
Sep-23 |
Oct-23 |
Nov-23 |
Renewable energy usage
(MW)6,7 |
168 |
166 |
164 |
Avg operating hashrate (PH/s) |
5,554 |
5,571 |
5,551 |
Financial (unaudited)2 |
Sep-23 |
Oct-23 |
Nov-23 |
Bitcoin mined |
390 |
376 |
369 |
Mining revenue (US$’000) |
10,278 |
11,159 |
13,714 |
Electricity costs (US$’000)3 |
5,354 |
5,868 |
5,730 |
Revenue per Bitcoin (US$) |
26,331 |
29,673 |
37,155 |
Electricity costs per Bitcoin (US$) |
13,717 |
15,604 |
15,524 |
Site |
Capacity (MW) |
Capacity(EH/s)8 |
Timing |
Status |
Canal Flats (BC, Canada) |
30 |
0.8 |
Complete |
Operating |
Mackenzie (BC, Canada) |
80 |
2.6 |
Complete |
Operating |
Prince George (BC, Canada) |
50 |
1.6 |
Complete |
Operating |
Childress (Texas, USA) |
20 |
0.6 |
Complete |
Operating |
Total Operating |
180 |
5.6 |
|
|
Childress (Texas, USA) |
80 |
4.44 |
Early 20249 |
Under construction |
Total Operating & Construction |
260 |
10.0 |
|
|
Childress (Texas, USA) |
500 |
|
TBD |
Power available |
New Site (Texas, USA) |
1,400 |
|
Late 2026 |
Connection underway |
Total Capacity |
2,160 |
|
|
|
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 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 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 investor update. Any
forward-looking statement that Iris Energy makes in this investor
update 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.
Preliminary Financial
Information
The preliminary financial information for the
month of November 2023 included in this investor update is not
subject to the same closing procedures as our unaudited quarterly
financial results and has not been reviewed by our independent
registered public accounting firm. The preliminary financial
information included in this investor update does not represent a
comprehensive statement of our financial results or financial
position and should not be viewed as a substitute for unaudited
financial statements prepared in accordance with International
Financial Reporting Standards. Accordingly, you should not place
undue reliance on the preliminary financial information included in
this investor update.
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 All timing references in this investor update are to calendar
months, in each case unless otherwise specified.
2 Bitcoin and Bitcoin mined in this investor update are
presented in accordance with our revenue recognition policy which
is determined on a Bitcoin received basis (post deduction of mining
pool fees as applicable). 3 The Company’s Childress site generated
~US$113k of power sales in November (~3 Bitcoin equivalent), which
represents unaudited power credits (primarily driven by voluntary
curtailment) under hedge contracts (based on current meter data and
ERCOT real-time prices) and are reflected within the electricity
costs. Figures are based on current internal estimates and exclude
REC purchases.4 Assumes future purchase and installation of Bitmain
T21 miners (beyond the announced 1.4 EH/s of Bitmain S21 and 1.3
EH/s of Bitmain T21 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.5 Purchase price
excludes shipping and taxes and is net of Bitmain bonuses and
coupon programs.6 The Company’s Canal Flats, Mackenzie and Prince
George sites have been powered by 100% renewable energy since
inception of which approximately 98% is directly from renewable
energy sources; approximately 2% is from the purchase of RECs. The
Company’s Childress site has been powered by 100% renewable energy
since inception via the purchase of RECs.7 Comprises actual power
usage for Canal Flats, Mackenzie, Prince George and Childress.8
Reflects estimated hashrate capacity by site assuming full
utilization of existing available data center capacity with Bitmain
S19j Pro miners, except where otherwise stated.9 Indicative timing
for commencement of delivery of data centers.
Photos accompanying this announcement are available
at:https://www.globenewswire.com/NewsRoom/AttachmentNg/b9683534-382b-4a4c-90fc-43d3d8768d6ahttps://www.globenewswire.com/NewsRoom/AttachmentNg/eed7929b-fbf9-4743-a222-e87efda81624
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