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 July 2023, containing its results from operations as well
as business updates.
Key Highlights1
Key metrics2 |
Jul-23 |
Average operating hashrate (PH/s) |
5,562 |
Bitcoin mined |
423 |
Mining revenue (US$’000) |
12,660 |
Electricity costs (US$’000) |
6,552 |
Revenue per Bitcoin (US$) |
29,939 |
Electricity costs per Bitcoin (US$) |
15,494 |
- Corporate:
- Record data center
operations at 111°F (44°C) intake temperatures
- Maintained stable
hashrate through extreme temperatures
- Demonstrates Iris
Energy’s industry-leading data centers
- Further validates
proprietary air-cooled data center design
- Appointment of
Sunita Parasuraman to Board of Directors
- Senior technology
executive, previous experience with Meta (Facebook), VMware,
Genentech, and Apple
- Operations (for the
month of July 2023):
- Average operating
hashrate of 5,562 PH/s (flat vs. June)
- Monthly operating
revenue of US$12.7 million (+9% vs. June)
- 423 Bitcoin mined
(-1% vs. June)
- ~US$0.2 million of
estimated power sales at Childress via automated algorithm (~6
Bitcoin equivalent)3
- Higher electricity
costs per Bitcoin ($15.5k vs. $13.0k in June) primarily
attributable to higher prices at Childress during the month
(typically higher during summer months) and reduced market
volatility (lower energy trading proceeds). The Company retains
flexibility to reduce future power costs through adjusting miner
output in response to changes in mining economics
- Construction:
- Childress (Phase 1:
100MW – Texas, USA)
- 20MW data center operating
- Civil works for
remaining 80MW scheduled to commence in August
Corporate update
Appointment of Sunita Parasuraman to Board of
Directors
On July 18, 2023, the Company announced the
appointment of Sunita Parasuraman to its Board of Directors. Ms.
Parasuraman will also serve as Chair of the Audit and Risk
Committee. During her career as a senior technology executive, Ms.
Parasuraman has built and scaled world-class teams at Meta
(Facebook), VMware, Genentech, and Apple.
Ms. Parasuraman currently serves on the Board of
Baldwin Risk Partners (NASDAQ: BRP), a leading publicly-traded
insurance distribution company, where she is a member of its Audit
and Cyber Risk Committees.
The full announcement can be accessed via the
following link.
Livewire Markets, David Bartholomew on ‘The
Pitch’
David Bartholomew (Independent Chair)
participated in a two-part video series with Livewire Markets to
discuss the Company’s infrastructure business model, alternate use
cases for its data centers (e.g. HPC and AI), the economics of
Bitcoin mining and the attributes that set Iris Energy apart.
The video series can be accessed via the
followings links: Video 1 and Video 2.
Canaccord Genuity 43rd Annual Growth
Conference
Bom Shin (Head of Capital Markets) is scheduled
to participate in a fireside chat with Joseph Vafi (Managing
Director, Equity Research) on Wednesday, August 9 at 4.00pm Eastern
Time.
The fireside chat will be recorded, and the
replay accessible shortly after the event via the following
link.
Mr. Shin will also be available for 1x1 meetings
with investors. For more information about the conference or to
request a 1x1 meeting, please contact a Canaccord Genuity
representative.
Canal Flats update (0.8 EH/s, 30MW
capacity) – BC, Canada
Canal Flats has been powered by 100% renewable
energy since inception4.
The project achieved average monthly operating
hashrate of 825 PH/s in July compared to 831 PH/s last month.
Mackenzie update (2.6 EH/s, 80MW
capacity) – BC, Canada
Mackenzie has been powered by 100% renewable
energy since inception4.
The project achieved average monthly operating
hashrate of 2,583 PH/s in July compared to 2,572 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 inception4.
The project achieved average monthly operating
hashrate of 1,592 PH/s in July compared to 1,608 PH/s last month.
During the month, the team conducted scheduled maintenance at
Prince George (reliability testing of the 25kV cables between the
substation and switchgear occurred on July 12-13).
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 562 PH/s in July compared to 577 PH/s last month.
The data center at Childress successfully
maintained stable hashrate at intake temperatures of up to ~111°F
(~44°C) (see chart below), further validating the Company’s
industry-leading proprietary air-cooled data center design.
The Company’s ability to operate in Texas
through extreme temperatures demonstrates the quality of our
proprietary data centers, allowing us to enhance the operating
environment of our hardware (and thereby extend asset life). This
also provides true optionality to transition between mining Bitcoin
and energy trading to optimize profitability, in contrast to
operators who may be forced to curtail at high temperatures
regardless of energy market conditions (i.e. due to operational
limitations).
Childress: Hashrate vs. Intake Temperature chart
is available
at https://www.globenewswire.com/NewsRoom/AttachmentNg/80970e50-c5a4-4c2a-8c06-6df2fdc40e3e
Construction of the remaining 80MW is underway
for Phase 1 (first 100MW), with civil works scheduled to commence
in August.
The Company’s significant upfront investment in
key infrastructure also provides a rapid, efficient and near-term
growth pathway for the subsequent 500MW of 600MW power capacity at
the site.
Community engagement
Canal Flats is pleased to advise it has renewed
its sponsorship of the Columbia Valley Rockies Hockey team for the
2023/2024 season. A sponsorship of C$10,000 will go towards
supporting the local youth for what is looking to be another
exciting hockey season.
Applications have now closed for the 2023
Community Grants Programs for Mackenzie and Prince George. The
Company is currently reviewing submissions and successful
recipients are expected to be announced in the coming months.
Applications are currently being accepted for
the 2023 Community Grants Program for Childress, with Iris Energy
to invest up to US$100,000 into local non-profit organizations in
the community.
Future development sites
Development works continued across additional
sites in Canada, the USA and Asia-Pacific, which have the potential
to support up to an additional >1GW of aggregate capacity that
can power growth beyond the Company’s 760MW of announced
capacity.
Operating and financial
results
Daily average operating hashrate chart is available
at https://www.globenewswire.com/NewsRoom/AttachmentNg/bb12d311-6313-4d48-9ad8-a6e153a7c689
Technical commentary
The Company’s average operating hashrate was
5,562 PH/s in July (compared to 5,587 PH/s in June) with the
marginal decrease primarily attributable to scheduled maintenance
at Prince George (reliability testing of the 25kV cables between
the substation and switchgear occurred on July 12-13). The decrease
in Bitcoin mined (423 vs. 428 in June) was primarily attributable
to a decrease in network transaction fees and an increase in
network difficulty. The increase in electricity costs per Bitcoin
($15.5k vs. $13.0k in June) was primarily attributable to higher
prices at Childress (typically higher during summer months) and
reduced market volatility (lower energy trading proceeds), noting
the Company retains flexibility to reduce future power costs
through adjusting miner output in response to changes in mining
economics.
Operating |
May-23 |
Jun-23 |
Jul-23 |
Renewable energy usage (MW)5 |
167 |
169 |
170 |
Avg operating hashrate (PH/s) |
5,510 |
5,587 |
5,562 |
Financial (unaudited)2 |
May-23 |
Jun-23 |
Jul-23 |
Bitcoin mined |
508 |
428 |
423 |
Mining revenue (US$’000) |
13,526 |
11,653 |
12,660 |
Electricity costs (US$’000) |
6,056 |
5,572 |
6,552 |
Revenue per Bitcoin (US$) |
26,628 |
27,211 |
29,939 |
Electricity costs per Bitcoin (US$) |
11,922 |
13,011 |
15,494 |
Site |
Capacity (MW) |
Capacity (EH/s)6 |
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 |
Total (BC, Canada) |
160 |
5.0 |
|
|
Childress (Texas, USA) |
20 |
0.6 |
Complete |
Operating |
Total Operating (Canada & USA) |
180 |
5.6 |
|
|
Childress (Texas, USA) |
80 |
3.57 |
Early 20248 |
Under construction |
Total (Canada & USA) |
260 |
9.1 |
|
|
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 markets with low-cost, under-utilized renewable
energy, and where the Company can support 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: Iris Energy’s limited
operating history with operating losses; electricity outage,
limitation or availability of electricity supply or increase in
electricity costs, as well as limitations on the availability of
electrical supply for Bitcoin mining due to restrictions imposed by
governmental authorities or otherwise; long term outage or
limitation of the internet connection at Iris Energy’s sites; any
critical failure of key electrical or data center equipment; serial
defects or underperformance with respect to Iris Energy’s
equipment; failure of suppliers to perform under the relevant
supply contracts for equipment that has already been procured which
may delay Iris Energy’s expansion plans; supply chain and logistics
issues for Iris Energy or Iris Energy’s suppliers; cancellation or
withdrawal of required operating and other permits and licenses;
customary risks in developing greenfield infrastructure projects;
Iris Energy’s evolving business model and strategy; Iris Energy’s
ability to successfully manage its growth; Iris Energy’s ability to
raise additional financing (whether because of the conditions of
the markets, Iris Energy’s financial condition or otherwise) on a
timely basis, or at all, which could adversely impact the Company’s
ability to meet its capital commitments (including payments due
under any hardware purchase contracts or debt financing
obligations) and the Company’s growth plans; the failure of Iris
Energy’s wholly-owned special purpose vehicles to make required
payments of principal and/or interest under their limited recourse
equipment financing arrangements when due or otherwise comply with
the terms thereof, as a result of which the lender thereunder has
declared the entire principal amount of each loan to be immediately
due and payable, and is taking steps to enforce the indebtedness
and its rights in the Bitcoin miners with respect to certain of
such loans and other assets securing such loans, including
appointing a receiver with respect to such special purpose
vehicles, which is expected to result in the loss of the relevant
Bitcoin miners securing such loans and has materially reduced the
Company’s operating capacity, and could also lead to bankruptcy or
liquidation of the relevant special purpose vehicles, and
materially and adversely impact the Company’s business, operating
expansion plans, financial condition, cash flows and results of
operations; the terms of any additional financing or any
refinancing, restructuring or modification to the terms of any
existing financing, which could be less favorable or require Iris
Energy to comply with more onerous covenants or restrictions, any
of which could restrict its business operations and adversely
impact its financial condition, cash flows and results of
operations; competition; Bitcoin prices, global hashrate and the
market value of Bitcoin miners, any of which could adversely impact
its financial condition, cash flows and results of operations, as
well as its ability to raise additional financing and the ability
of its wholly owned special purpose vehicles to make required
payments of principal and/or interest on their equipment financing
facilities; risks related to health pandemics including those of
COVID-19; changes in regulation of digital assets; 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, 2022, and the Company’s report on Form 6-K filed with
the SEC on February 15, 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 July 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 Represents unaudited estimated power credits
(primarily driven by curtailment) under hedge contracts (based on
current meter data and average quarter hour spot prices) and are
reflected within the electricity costs. Bitcoin equivalent
calculated by dividing the estimated power credits by the average
revenue per Bitcoin of $29,939 for the month of July. Current
internal estimate as monthly electricity invoices have not yet been
issued for Childress.4 Currently approximately 97% directly from
renewable energy sources; approximately 3% from purchase of RECs.5
Comprises actual power usage for Canal Flats, Mackenzie, Prince
George and Childress. Canal Flats, Mackenzie and Prince George have
been powered by 100% renewable energy since inception of which
approximately 97% is directly from renewable energy sources;
approximately 3% is from the purchase of RECs. Childress
has been powered by 100% renewable energy since inception via the
purchase of RECs.6 Reflects estimated hashrate capacity
by site assuming full utilization of existing available data center
capacity with Bitmain S19j Pro miners.7 Assumes purchase of Bitmain
S19 XP miners. Additional miners have not yet been purchased and
the Company will continue to monitor the market for purchase
opportunities. Hashrate figures may change depending on miner
procurement selection.8 Indicative timing for completion of data
centers.
Photos accompanying this announcement are available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/0347c5ac-9ca8-482a-83df-a2556298e7f9
https://www.globenewswire.com/NewsRoom/AttachmentNg/ce69c5d1-caa1-48f7-9460-f7c32abda1ca
Baldwin Insurance (NASDAQ:BRP)
Historical Stock Chart
From May 2024 to Jun 2024
Baldwin Insurance (NASDAQ:BRP)
Historical Stock Chart
From Jun 2023 to Jun 2024