IREN Records $184M Bitcoin Mining Revenue, Doubles Mining Capacity in 2024

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As a seasoned researcher and analyst with over two decades of experience under my belt, I can confidently say that the remarkable growth trajectory demonstrated by IREN (formerly Iris Energy) in Bitcoin mining is nothing short of breathtaking. Having closely followed the industry for years, I’ve witnessed countless ups and downs, but IREN’s story stands out as one of resilience, innovation, and strategic planning.

As an analyst, I’m thrilled to share that IREN, formerly known as Iris Energy, has had an exceptional year in Bitcoin mining. Not only have we surpassed our own past records, but we’ve also managed to allay market uncertainties. On the 28th of August, 2024, we proudly disclosed our financial results, which underscored a substantial rise in both revenue and operational capacity.

During the financial year wrapping up on June 30, 2024, IREN’s income from Bitcoin mining skyrocketed to an impressive $184.1 million. This represents a significant jump of 144% compared to the $75.5 million earned in the preceding year. The main reasons for this growth include a substantial rise in hash rate and increased Bitcoin prices.

Significantly, IREN has significantly boosted its own mining capabilities, raising it from 5.6 exahash per second (EH/s) to 10 EH/s. This growth allowed IREN to mine a remarkable 4,191 Bitcoins, an increase from the 3,259 Bitcoins mined in the last fiscal year. As of August 28, 2024, IREN’s total mining capacity stands at 15 EH/s.

IREN Targets 30 EH/s by Year-End

IREN’s aggressive growth strategy positions the company for even more significant achievements ahead. The goal is to reach a hash rate of 20 EH/s by September 2024 and an impressive 30 EH/s by the end of the year. This swift development is fueled by the anticipated acquisition of advanced Bitmain S21 XP miners, amounting to 10.5 EH/s, scheduled for delivery in November 2024.

Daniel Roberts, a co-founder and joint CEO of IREN, conveyed his excitement over the projected FY24 outcomes. He emphasized the ongoing expansion in revenue, profits, and liquidity, stating that these projections are indeed true.

“Despite any changes, our projections for 2024 remain the same. Currently operating at 15 exahash per second (EH/s), we are steadily progressing towards reaching a milestone of 20 EH/s next month and aiming to reach 30 EH/s by the end of this year.”

Beyond just Bitcoin mining, IREN is also thoughtfully broadening its income sources. Notably, the firm has announced earnings of $3.1 million from AI cloud services, demonstrating their dedication to growing their data center network and pursuing fresh prospects in this area.

IREN’s Growth Strategy Pays Off

IREN’s financial performance underscores the success of their growth approach. In just one year, from 2023 to 2024, their adjusted EBITDA significantly increased from a modest $1.4 million to a substantial $54.7 million.

As a crypto investor, I’ve noticed an impressive growth period that came with a surge in electricity costs. This escalation was primarily due to the heightened hashrate, causing our electricity bills to skyrocket from approximately $35.8 million in 2023 to a staggering $76 million in 2024. Beyond electricity, our total expenses also swelled, reaching $56.5 million in 2024 compared to the initial $38.4 million. This expansion was fueled by strategic investments in renewable energy credits, expanding our headquarters, and managing site costs.

Even with the increased costs, IREN’s financial standing saw an improvement. The company managed to decrease its net loss from a staggering $171.9 million in 2023 to a more manageable $29 million in 2024. Furthermore, as of June 30, 2024, IREN reported a robust cash reserve of $404.6 million, free from any debt.

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2024-08-29 17:21