IREN boosts bitcoin mining, expands data centers

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IREN boosts bitcoin mining, expands data centers
Credit: © Reuters.

SYDNEY - Iris Energy Limited (NASDAQ: IREN), now rebranded as IREN, a company specializing in next-generation data center operations for Bitcoin mining and AI services, provided a monthly update for February 2024 today. The company reported significant growth in its Bitcoin mining operations and expansion plans for its data center capacity.

In February, IREN achieved a record operating hashrate of 7 EH/s, mining a total of 310 Bitcoin. This has contributed to a monthly mining revenue increase to $15.2 million, attributed to the higher average hashrate and an increase in Bitcoin price to approximately $49,100. The company has set an ambitious target to expand its hashrate to 20 EH/s within 2024.

The company's AI Cloud Services division signed a contract with poolside AI and plans to triple its business by fast-tracking the addition of 816 NVIDIA (NASDAQ: NVDA ) H100 GPUs. The initial term of the contract is three months, with an option to extend for another three.

IREN's data center expansion plans include growing to 460MW in 2024, with Childress Phase 1 in Texas already operational at 60MW and an additional 40MW to be commissioned in the near future. Phases 2 and 3, which will support the expansion to 20 EH/s, are currently under construction, with civil and procurement work underway.

The company's rebranding from Iris Energy to IREN is intended to better reflect its growing data center business. Alongside this update, IREN released its second-quarter financial results on February 15, 2024, for the periods ending December 31, 2023.

Looking ahead, IREN is scheduled to participate in several industry events, including the 36th Annual ROTH Conference, NVIDIA GTC, and Bitcoin Alive in March 2024.

This news is based on a press release statement from IREN.

InvestingPro Insights

As IREN continues to expand its operations and redefine its brand, it's important to consider the company's financial health and market performance. According to InvestingPro data, IREN boasts an impressive gross profit margin of 85.52% for the last twelve months as of Q2 2024, underlining the company's efficiency in managing its operational costs relative to revenue.

Despite not being profitable over the last twelve months, analysts predict that IREN will turn a profit this year. This optimistic outlook is supported by a substantial 109.69% revenue growth during the same period, indicating a strong upward trajectory for the company's sales. Additionally, the company's stock has experienced a significant return of 92.8% over the last year, reflecting investor confidence and market momentum.

While these figures point towards a promising future, investors should note that IREN's stock price movements have been quite volatile, with a 15.87% decrease over the last week. Such volatility suggests that potential investors should be prepared for fluctuations in the market value of their investments.

For those seeking a deeper dive into IREN's financials and market prospects, there are additional InvestingPro Tips available. These tips can provide valuable insights into the company's cash reserves, sales growth expectations, and analysts' earnings revisions. With this in-depth analysis, investors can make more informed decisions about their investments in IREN.

Interested readers can unlock further insights and tips by subscribing to InvestingPro. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and explore the full range of 15 additional InvestingPro Tips for IREN at https://www.investing.com/pro/IREN.

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