Iris Energy Releases Monthly Investor Update for August 2023

Iris Energy Limited (IREN) has released its monthly investor update for August 2023, detailing both operational results and business developments.

Key Highlights

Key Metrics

• Average Operating Hashrate (PH/s): 5,493
• Bitcoin Mined: 410
• Mining Revenue (in US$’000): 11,459
• Electricity Costs (in US$’000): 4,342
• Revenue per Bitcoin (US$): 27,937
• Electricity Costs per Bitcoin (US$): 10,586

Operational Updates

Significant Developments at Childress:

• Childress experienced negative realized electricity costs of approximately US$0.08/kWh. Consequently, the company effectively generated about US$28,000 per Bitcoin mined through power trading, in addition to generating the same amount in mining revenue, leading to approximately US$56,000 in mining profit per Bitcoin.
• There are 580 MW of additional power available at the Childress site for future expansion.

Investments in Next-Generation Technology:

• The company has targeted advancements in compute and generative AI by purchasing 248 NVIDIA H100 GPUs for around US$10 million, expected to be delivered in the coming months. While Bitcoin mining remains primary, this initiative represents a new revenue opportunity.

Childress Construction Progress:

• The construction of the first phase (100 MW) is advancing, with mass grading completed and the foundation work for the data center underway. The growth will support an increase in hashrate from 5.6 EH/s to 9.1 EH/s.

Financial Overview

The average operating hashrate decreased from 5,562 PH/s in July to 5,493 PH/s in August, resulting in a decline in Bitcoin mined from 423 to 410. However, power sales totaling approximately US$2.3 million helped mitigate electricity costs, which dropped to US$4.3 million from US$6.6 million in July. Consequently, the average electricity cost per Bitcoin fell from US$15.5k to US$10.6k.

Regional Updates

• Canal Flats (BC, Canada): Maintained a renewable energy operation, achieving a hashrate of 823 PH/s.
• Mackenzie (BC, Canada): Also powered entirely by renewables, reaching 2,595 PH/s.
• Prince George (BC, Canada): Operated with a hashrate of 1,615 PH/s, powered by renewables.
• Childress (Texas, USA): Despite a decrease in output to 461 PH/s in August due to trading adjustments, construction for further expansions is ongoing.

Community Engagement

Iris Energy played an active role in the community by sponsoring the annual Flats Festival in Canal Flats, with proceeds directed to the local Volunteer Fire Department. The company also participated in cultural activities with the Lheidli T’enneh Elder’s Society and received the “Friends to 4-H” award in Childress for its contributions to youth programs.

Future Development

Plans are underway for additional sites across Canada, the USA, and the Asia-Pacific region, which could increase total capacity by over 1 GW beyond the 760 MW already announced.

Conclusion

Iris Energy continues to pursue growth in sustainable Bitcoin mining while diversifying its operations with new technologies and community engagements. Their management team’s extensive experience in energy and infrastructure positions them uniquely for future success.

Forward-Looking Statements

This update contains forward-looking statements regarding Iris Energy’s operations, strategic plans, and financial expectations. There are inherent risks and uncertainties that could cause actual results to differ significantly from these statements.

Contact Information

Media Contact: Jon Snowball, Domestique, +61 477 946 068
Investor Contact: Lincoln Tan, Iris Energy, +61 407 423 395

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