IREN (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 published a monthly
investor update for July 2024.
Key Highlights
Bitcoin Mining |
AI Cloud Services |
- 222 Bitcoin mined in July
- 10.5 EH/s installed (as of Aug 5)
- 20 EH/s in 3Q, 30 EH/s in 4Q
|
- 816 NVIDIA H100 GPUs
- Servicing multiple reserved/on-demand customers
|
Data
Centers |
Corporate |
- 260MW operating, 510MW in 2024
- Childress power capacity increased from 600MW to 750MW
|
- Morgan Stanley appointed financial advisor
- Analyst & Investor Day, presentation available
here
|
Key Metrics |
Jul-24 |
Jun-24 |
May-24 |
Bitcoin Mining1 |
|
|
|
Average operating hashrate
(PH/s) |
9,008 |
9,316 |
9,414 |
Renewable energy usage
(MW)2 |
241 |
246 |
246 |
Bitcoin mined |
222 |
233 |
230 |
Mining revenue (US$'000) |
13,592 |
15,490 |
15,079 |
Electricity costs
(US$'000)3 |
13,674* |
9,183 |
8,167 |
Hardware profit margin
(%)4 |
(1%) |
41% |
46% |
Revenue per Bitcoin (US$) |
61,306 |
66,571 |
65,498 |
Electricity cost per Bitcoin
(US$) |
61,677 |
39,466 |
35,475 |
AI Cloud
Services |
|
|
|
AI Cloud Services revenue
(US$'000) |
1,266 |
1,078 |
892 |
Electricity costs
(US$'000) |
19 |
20 |
16 |
Hardware profit margin (%)4 |
98% |
98% |
98% |
*Note: The Company’s Childress site generated an estimated
~$0.3m of power sales and $0.5m ERS revenue in July (~13 Bitcoin
equivalent), which are reflected within electricity costs. See
‘Bitcoin Mining’ section below regarding high electricity costs for
the month of July.
Bitcoin Mining
July operations
- Average operating hashrate impacted
by:
- Planned outages for Phase 1 substation upgrades and Phase 2
substation energization
- T21 miner performance due to a batch production issue, Bitmain
is in the process of replacing all defective units
- Increased electricity costs in July
were primarily attributable to higher energy hedge pricing in the
summer month at Childress, but with much lower than expected energy
market volatility which reduced energy trading opportunities (e.g.
which resulted in a net electricity cost of negative 8c/kWh during
August 2023)
- The Company is re-assessing its future
energy pricing structures
- Current fleet efficiency of 24 J/TH is
expected to improve to 17 J/TH by the end of next month as part of
the expansion to 20 EH/s
2024 expansion on schedule
- 10.5 EH/s installed (as of August 5,
2024)
- S21 Pro miner shipments, deliveries
and racking underway to support the Company’s expansion to 20 EH/s
by the end of next month
AI Cloud Services
Recent hires have focused on technical roles to support growth
in our AI Cloud Services business
AI Cloud Services
- 816 NVIDIA H100 GPUs
- AI Cloud Services revenue increased by 17% (vs. June) and 42%
(vs. May)
- Fleet currently fully utilized
- Serviced 6 end-customers to date across the reserved and
on-demand market
- Planning to launch Childress GPU pilot
in 2H 2024
Data Centers
Childress (July 2024)
510MW of data centers in 2024
- Childress Phase 2 (100MW) – 3Q 2024
- 100MW substation energized
- 4 x 25MW data centers on track for completion by the end of
next month
- Childress Phase 3 (150MW) – 4Q 2024
- Mass grading complete
- Foundational, structural and electrical works ongoing for 6 x
25MW data centers
Childress power capacity increased from 600MW to
750MW
- Secured an additional 150MW of
immediately available power capacity at Childress
Data Center |
Capacity (MW) |
Capacity
(EH/s)5 |
Timing |
Status |
Canal Flats (BC, Canada) |
30 |
1.0 |
Complete |
Operating |
Mackenzie (BC, Canada) |
80 |
2.9 |
Complete |
Operating |
Prince George (BC,
Canada) |
50 |
1.8 |
Complete |
Operating |
Childress Phase 1 (Texas,
USA) |
100 |
4.8 |
Complete |
Operating |
Total
Operating |
260 |
10.5 |
|
|
Fleet Upgrade
(Incremental) |
- |
3.5 |
3Q 2024 |
Miners secured |
Childress Phase 2 (Texas,
USA) |
100 |
6 |
3Q 2024 |
Under construction |
Childress Phase 3 (Texas
USA) |
150 |
10 |
4Q 2024 |
Under construction |
Total Operating &
Construction |
510 |
30 |
|
|
Childress Phase 4 - 6 (Texas,
USA) |
400 |
|
TBD |
Power available |
Development Site (Texas,
USA) |
1,400 |
|
Late 2026 |
Connection underway |
Additional Pipeline |
>1,000 |
|
|
Development |
Total |
>3,000 |
|
|
|
|
|
|
|
|
Corporate
Management Q&A at Analyst & Investor Day in NYC
Morgan Stanley appointed financial advisor
- Morgan Stanley appointed financial
advisor in connection with evaluating monetization opportunities in
the AI data center market
Events
- IREN Analyst & Investor Day,
NYC (Presentation available here)
- CG Annual Growth Conference,
Boston (Aug 13 – 15, 2024)
- Morgan Stanley Virtual
Symposium (Aug 14 – 15, 2024)
- Wyoming Blockchain Symposium, Jackson
Hole (Aug 19 – 22, 2024)
- Macquarie ASEAN Conference,
Singapore (Aug 27 – 28, 2024)
Assumptions and Notes
- 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).
- Comprises actual power usage for Canal Flats, Mackenzie, Prince
George, and Childress. 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.
- Electricity costs presented on a net basis and calculated as
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). Figures are based on
current internal estimates and exclude REC purchases.
- Hardware profit margin for Bitcoin mining and AI Cloud Services
is calculated as revenue less net electricity costs, divided by
revenue (for each respective revenue stream) and excludes all other
costs.
- Capacity to be installed comprises Bitmain T21 and S21 Pro
miner purchases and miner purchase options. Additional S21 Pro
miners secured will also be used to upgrade the existing fleet.
Final decisions with respect to exercising miner purchase options
will be made during 2024 taking into consideration market and
funding conditions.
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.
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 our
business operations and adversely impact our 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 into the market for high performance
computing (“HPC”) solutions, and in particular any current or
future AI Cloud (“AI Cloud”) Services we offer; IREN’s limited
experience with respect to new markets it has entered or may seek
to enter, including the market for 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 or future 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 AI Cloud Services; IREN’s ability to manage
counterparty risk (including credit risk) associated with any
current or future customers, including customers of our AI Cloud
Services and other counterparties; IREN’s ability to secure
renewable energy, renewable energy certificates, power capacity,
facilities and sites on commercially reasonable terms or at all;
the risk that any current or future customers, including customers
of our AI Cloud Services, or other counterparties may terminate,
default on or underperform their contractual obligations; Bitcoin
global 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 power and utilities
providers, third party mining pools, exchanges, banks, insurance
providers and our 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 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 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 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; 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 our 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 we offer (such as AI Cloud Services),
including regulations related to data privacy, cybersecurity and
the storage, use or processing of information; 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, severe weather conditions and natural and
man-made disasters that may materially adversely affect our
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; our ability to remain competitive in dynamic and rapidly
evolving industries; damage to our brand and reputation;
expectations relating to Environmental, Social and 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 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 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.
Preliminary Financial Information
The preliminary financial information 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.
Non-IFRS Financial Measures
This investor update includes non-IFRS financial
measures, including electricity costs (presented on a net basis)
and hardware profit 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 non-IFRS financial measures. 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.
Photos accompanying this announcement are available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/811f07bf-1292-4d2e-90a2-85e395b7206c
https://www.globenewswire.com/NewsRoom/AttachmentNg/81c863cc-7960-42fb-ab82-3e705e467631
https://www.globenewswire.com/NewsRoom/AttachmentNg/2d60d77c-ec81-4b56-8af3-753eaf7ba244
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