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Key takeaways from the call:
Iris Energy is leveraging its strong foundation to capitalize on the Bitcoin mining industry. The company’s 600-megawatt Texas site, with a Bitcoin mining capacity of 30 exahash, is a testament to its commitment. They also reported a significant increase in Bitcoin mining revenue, which rose by $16.5 million year-on-year.
The company is not just focused on Bitcoin mining. Iris Energy is also exploring opportunities in the burgeoning field of generative AI computing. They have ordered 250 NVIDIA H-100 GPUs and reported promising customer conversations, indicating potential growth in this sector.
The power market’s volatility and fluctuating electricity costs were also discussed during the call. Iris Energy cited a net cost of electricity of $0.014 per kilowatt hour, mentioning a net cost of minus $0.08 per kilowatt hour in August. Despite acknowledging the potential increase in volatility due to factors like transmission line congestion and the growth of renewable energy, the company expressed optimism about its ability to monetize this volatility and lower overall costs.
In terms of financing, the company has a plan that includes $626 million and is focused on reinvesting operating cash flow for growth. They are considering various options like the ELOC, ATM, and vendor financing as part of their strategy to optimize their cost of capital. The company expressed confidence in its platform and the industry’s future, emphasizing its position at the forefront of innovation in digitization and renewable energy.
During the call, CEO Dan Roberts and CFO Robert Lincoln provided insights into the company’s construction plans, supply chain management, and data center operations. Roberts emphasized the company’s experience and expertise in building data centers and their competitive advantage in power efficiency and utilization. He also highlighted the company’s focus on AI and HPC and their conversations with various types of customers, including cloud businesses and start-ups.
In summary, Iris Energy expressed optimism about its future growth strategy, focusing on Bitcoin mining and exploring opportunities in AI computing. The company’s strong balance sheet and robust growth plans suggest it is well-positioned to capitalize on the opportunities in these sectors.
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