SYDNEY - Iris Energy Limited (NASDAQ: IREN), a data center operator for Bitcoin mining and AI services, which uses renewable energy, has announced a significant increase in its financial performance for the third quarter ended March 31, 2024. The company reported a record quarterly net profit after tax (NPAT) of $8.6 million, a notable turnaround from the loss of $5.2 million in the previous quarter.
The company's Bitcoin mining operations generated $53.4 million in revenue, an increase from $42.0 million in the second quarter, attributed to a growth in operating hashrate and favorable Bitcoin prices. Despite a higher global hashrate leading to fewer mined Bitcoins this quarter (1,003 compared to 1,144 in the prior quarter), the company's overall financial health improved, with net electricity costs reaching $19.4 million due to increased operating hashrate.
Adjusted EBITDA for the quarter stood at $21.8 million, up from $13.9 million in the second quarter, showcasing a robust operational performance. The company's year-to-date operating cash inflow reached $47.9 million, a significant improvement from an outflow of $1.0 million in the comparative period of the previous year.
Iris Energy also highlighted its expansion plans, aiming to increase its Bitcoin mining capacity from 20 EH/s to 30 EH/s by 2024. The company has secured the latest generation Bitmain S21 Pro miners and anticipates a nameplate fleet efficiency of 16 J/TH. These strategic investments in land, power, and infrastructure are expected to pave the way for industry leadership, according to Daniel Roberts, Co-Founder and Co-CEO of Iris Energy.
In addition to Bitcoin mining, Iris Energy has commissioned 248 NVIDIA (NASDAQ:NVDA) H100 GPUs for its customer Poolside AI, generating $0.6 million in AI Cloud Services revenue. The company's AI Cloud Services agreement with Poolside AI has been upsized to 504 GPUs, doubling the initial commitment.
The company's data center capacity is set to increase to 510MW by the end of 2024, up from the previously planned 460MW. This expansion is supported by a new substation design and improvements in construction and procurement processes.
InvestingPro Insights
Iris Energy Limited (NASDAQ: IREN) has demonstrated a remarkable financial turnaround in its recent earnings report, which aligns with some of the positive indicators from InvestingPro data and tips. The company's focus on renewable energy-powered data centers for Bitcoin mining and AI services is reflected in its strategic expansion plans and operational metrics.
InvestingPro Data indicates that Iris Energy has a market capitalization of $687.13 million USD, showing a significant presence in the market. The company's revenue growth is particularly impressive, with a 109.69% increase over the last twelve months as of Q2 2024. This is complemented by a substantial gross profit margin of 85.52%, highlighting Iris Energy's ability to maintain profitability in its operations.
InvestingPro Tips suggest that analysts are optimistic about Iris Energy's sales growth in the current year, which is consistent with the company's reported revenue increase. Additionally, the company holds more cash than debt on its balance sheet, giving it a solid foundation for its ambitious expansion plans. However, it's worth noting that analysts do not anticipate the company will be profitable this year, and the stock price has shown high volatility in recent months.
For investors interested in a deeper analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/IREN, which can provide further insights into Iris Energy's prospects. These tips can be accessed with a special offer: use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. Currently, there are 11 additional tips listed on InvestingPro for Iris Energy, offering a comprehensive view of the company's financial health and stock performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.