Source: Investing Published 06/11/2024, 14:39
Sydney – Iris Energy (NASDAQ: IREN), a provider of AI cloud services and Bitcoin mining, has released its monthly investor update for October 2024, showing significant progress in its operations. The company reported a significant increase in Bitcoin mining revenue, attributing the growth to an increase in its operational hash rate to 21 exahashes per second (EH/s) and a rise in Bitcoin prices.
In its AI cloud services business, Iris Energy is deploying an additional 1,080 NVIDIA H200 GPUs and is preparing its data centers to accommodate liquid-cooled NVIDIA Blackwell GB200 GPUs. The company’s AI cloud computing services revenue in October was $1 million.
down slightly from $1.3 million in August but up from $0.7 million in September.
Bitcoin mining operations produced 439 BTC in October.
with the company highlighting a 12% decrease in electricity costs per BTC mined.
largely due to lower unit electricity costs at its Childress data center in Texas. The average operational hash rate was 19.9 EH/s, with a hardware profit margin of 168%.
Iris Energy’s data center capacity is set to expand, with a 1.4 gigawatt (GW) site in Texas targeted for operation by April 2026. Additionally, discussions are ongoing with several major cloud computing companies to explore different monetization structures for the company’s data center assets. The company’s Childress data center is currently operating at 200 megawatts (MW) and is under construction to expand to 360 MW by the end of 2024. This expansion is expected to support an increase in hashrate to 31 EH/s.
contributing to an expected annual hardware demonstration profit of $344 million.
In addition, Iris Energy is actively engaged with the investment community.
participating in upcoming conferences, including the Cantor Crypto, Digital Assets.
and AI Infrastructure Conference in Miami and the Roth Technology Conference in New York.
The information contained in this article is based on a press release from Iris Energy. Please note that the forward-looking statements contained in the press release are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These statements are not guarantees of future performance and should be viewed with caution.
In other recent news, Iris Energy reported significant progress in its operations. The company reported a 42% increase in Bitcoin mining revenue to $21.4 million in September.
driven by capacity expansion and a 21% decrease in electricity costs per Bitcoin. Iris Energy also achieved an operational milestone, reaching an installed capacity of 20 exahashes per second (EH/s) ahead of schedule. In terms of AI cloud computing services, Iris Energy secured seven new deals and plans to commission an additional 1,080 NVIDIA H200 GPUs by the end of 2024.
potentially doubling the company’s current AI capacity.
This expansion could contribute about 10% to the company’s earnings by the end of the year. Iris Energy also brought forward the commissioning date for a 1.4 GW substation at its West Texas data center project to April 2026 and expanded its landholdings by acquiring 800 acres.
This development supports both Bitcoin mining operations and high-performance computing (HPC) and AI services. Analysts Roth/MKM, B.Riley, and Macquarie have all reaffirmed their positive ratings on Iris Energy. These are recent developments that highlight Iris Energy’s strategic growth and commitment to using 100% renewable energy for its operations.
InvestingPro Insights
IREN’s recent operational updates are in line with several key metrics and insights from InvestingPro. The company’s impressive 149.98% revenue growth over the past 12 months reflects its successful expansion into both Bitcoin mining and AI cloud computing services. This growth trajectory is further supported by InvestingPro’s advice that analysts expect sales growth to continue into the current year.
The company’s gross profit margin of 88.24% is particularly noteworthy.
especially given IREN’s focus on energy-intensive operations such as Bitcoin mining. This is in line with another InvestingPro advice highlighting IREN’s impressive gross profit margins. However, investors should be aware that despite strong revenue growth.
IREN has yet to turn a profit in the past 12 months.
although analysts are expecting it to turn a profit this year.
IREN stock performance has been volatile but generally positive, with a significant return of 167.66% over the past year. This volatility is reflected in InvestingPro’s advice that the stock’s price movements are extremely volatile. The company has a market cap of $1.69 billion, indicating strong investor interest in its growth potential.
For those looking for a more comprehensive analysis, InvestingPro offers 16 additional IREN tips, providing a deeper understanding of the company’s financial health and market position.
