SYDNEY - Iris Energy (NASDAQ: IREN), a company specializing in next-generation data center operations, has released its investor update for June 2024, showcasing significant progress in its Bitcoin mining and AI cloud services, along with strategic expansion developments.
In the realm of Bitcoin mining, IREN reported mining 233 Bitcoin in June and anticipates reaching hash rates of 20 EH/s and 30 EH/s in the third and fourth quarters of 2024, respectively. The slight decrease in June's operating hash rate was attributed to participation in the 4CP (Four Coincidental Peak) program, which is expected to reduce annual power costs.
The launch of new-generation S21 Pro miners is set to commence in July, with procurement for expansions beyond 2025 already underway.
IREN's AI Cloud Services division saw a 21% revenue increase in June, driven by the higher utilization of its 816 NVIDIA (NASDAQ:NVDA) H100 GPU fleet and the onboarding of new customers, including Poolside AI. The company hosted a welcome reception at Collision 2024, a notable tech conference in North America, signaling its commitment to the AI sector.
The company's data center operations are also expanding, with 510MW expected to be operational by the end of 2024. Childress Phase 2 and Phase 3 are reported to be on schedule for completion in the third and fourth quarters of 2024, respectively. Additionally, a monetization program for the company's power and land portfolio is being explored, including asset sales and colocation deals.
Financially, Iris Energy stands strong with $425.3 million in cash reserves and no debt, positioning the company to fully fund its 2024 expansion and provide flexibility for future growth and potential power monetization activities.
The update also highlighted upcoming events, including an analyst and institutional investor briefing and a retail investor event in New York City on July 23, 2024, as well as participation in the Bitcoin 2024 conference in Nashville later that month.
This information is based on a press release statement.
In other recent news, Iris Energy Ltd (NASDAQ:IREN). has reported significant advancements in its operations, with earnings and revenue results showing a positive cash flow from operations at $48 million and a net profit before tax of $12 million. Iris Energy's hash rate capacity is projected to surge from the current 9.4 EH/s to over 40 EH/s by mid-2025.
Analysts from B.Riley have raised Iris Energy's price target from $9.50 to $18.00, maintaining a Buy rating, while Cantor Fitzgerald has given the company an Overweight rating and a price target of $23.00. The company's Bitcoin mining capacity is expected to reach 30 exahash by year-end, surpassing the initial projection of 20 exahash, and its AI cloud services division is witnessing growth, with expected hardware profits of around $14-$17 million annually.
InvestingPro Insights
As IREN (NASDAQ: IREN) continues to make strides in Bitcoin mining and AI cloud services, the company's financial health and market performance offer additional insights. According to InvestingPro data, IREN boasts a robust market capitalization of $2.68 billion, reflecting investor confidence in its growth prospects. The company's gross profit margin stands at an impressive 88.16% for the last twelve months as of Q3 2024, underscoring its operational efficiency and ability to generate profits from its revenue streams.
InvestingPro Tips reveal that analysts are optimistic about IREN's sales growth in the current year, an expectation that aligns with the company's strategic expansion plans and the successful launch of new services. Additionally, IREN's significant return over the last week, with a 27.1% price total return, highlights the company's strong short-term performance, which may interest investors looking for dynamic market plays.
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IREN's strategic initiatives in data center operations and the anticipated revenue growth from its AI cloud services are reflected in these key metrics and tips, providing a comprehensive picture of the company's financial and market standing as it gears up for future expansions.
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