Iris Energy Limited Announces Monthly Investor Update for May 2022
Record average operating hashrate of 1,165 PH/s (+12% increase)
|Average operating hashrate (PH/s)||1,165|
|Mining revenue (US$'000)||4,868|
|Electricity costs (US$'000)2||1,411|
|Revenue per Bitcoin (US$)||32,264|
|Electricity costs per Bitcoin (US$)||9,352|
- Provided business overview and update as part of the Company’s Q3 FY22 results
- Continued to progress additional funding options (see further details below)
Belinda Nuciforaas Chief Financial Officer
- Increased average operating hashrate to 1,165 PH/s (+12% increase)
- Monthly operating revenue of
- 151 Bitcoin mined (+10% increase)
Mackenzie(2.4 EH/s, 50MW initial / 80MW total – BC, Canada)
- Internal data center fit out continues for the remainder of the first 50MW
- Initial testing activities for the substation have commenced
Prince George(2.4 EH/s, 50MW initial / 85MW total – BC, Canada)
- Initial building construction well advanced on the first data center building (20MW), with the second data center building (10MW) underway
- Foundation works for the substation are complete and are well progressed for the third data center building (20MW)
Childress(9.6 EH/s, 335MW – Texas, USA)
- Procurement and early works continued with all required construction permits in place
- Key long-lead items have been purchased (including step-down transformers and associated circuit breakers)
Multiple debt processes remain underway, with discussions involving various aspects of the capital structure, for example, equipment financing similar to the recent
Business summary (as at
$454mof total equity
- Nil corporate-level debt3
$142mof cash $180mof prepayments on contracted miners
- 3.7 EH/s of operating capacity on track to come online by the end of Q3 2022; representing illustrative annualized mining profit of
$127m(based on a $30kBitcoin price4)
The Company also welcomed
During the month, a further ten
The initial 0.3 EH/s (9MW) at
Construction of the remainder of the first 1.5 EH/s (50MW) remains on track for Q3 2022. The internal fit out of the first data center building is complete and continues to advance for the second and third data center buildings. All foundation and sub-surface works for the substation are complete, major electrical equipment installations continue and initial testing activities have commenced.
Upon completion, 80MW of proprietary data centers are expected to power an additional ~24,000 Bitmain S19j Pro and S19j miners (already secured), generating 2.4 EH/s of incremental hashrate and adding approximately 15-20 direct full-time local jobs in
The structural steel for the first data center building (20MW) has been erected and the exterior roofing and cladding materials are currently being installed. Erection of the structural steel has commenced on the second data center building (10MW), and the materials required to complete the building are on-site. Foundation works are well progressed for the third data center building (20MW) and completed for the substation.
The first 1.4 EH/s (50MW), comprising three data centers, remains on track to be energized by the end of Q3 2022, with the additional 1.0 EH/s (35MW) anticipated to come online in 2023.
Upon completion, 85MW of proprietary data centers are expected to power an additional ~25,000 Bitmain S19j Pro and S19j miners (already secured), generating 2.4 EH/s of incremental hashrate and adding approximately 20 direct full-time local jobs in
Procurement and early construction activities continued to progress (all required construction permits are in place) in conjunction with ongoing civil works. Purchase orders have been placed on key long-lead items, including the 345kV step-down transformer, 138kV step-down transformers and associated circuit breakers, and delivery timelines currently remain on track. Tendering activities are complete with bulk earthworks and buildings contracts in the process of being awarded.
The first 3.0 EH/s (100MW) of data center buildings are expected to be completed by the end of 20227, with an additional 6.6 EH/s (235MW), comprising S19j Pro miners (already secured), expected to progressively come online through to Q3 2023. Based upon the executed 600MW connection agreement with
Upon completion and at full capacity, 600MW of proprietary data centers are expected to generate ~18 EH/s8 of incremental hashrate and add approximately 50-60 direct full-time local jobs in Childress.
Future development sites
Development works continued across additional sites in
Further details will be provided in due course including as and when development sites transition to the construction phase.
Operating and financial results
Daily average operating hashrate chart is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/8d79d063-7925-439e-aa8a-6f72dc55f679
The Company’s average operating hashrate increased to 1,165 PH/s in May, primarily attributable to the first full month of operations of the initial 9MW at
|Operating renewable power usage (MW)||27||339||379|
|Avg operating hashrate (PH/s)||850||1,038||1,165|
* Reflects actual recorded operating power usage and hashrate (not nameplate). Note: nameplate capacity is higher than actual operating power usage due to features of the Company’s proprietary data center design which utilizes variable speed fans to reduce power consumption during cooler months, as well as the Company maintaining a buffer within its infrastructure capacity that can be also directed to other site uses (e.g., in-house fabrication shop at
|Mining revenue (US$’000)||5,136||5,434||4,868|
|Electricity costs (US$’000)||1,029||1,205||1,411|
|Revenue per Bitcoin (US$)||42,471||39,740||32,264|
|Electricity costs per Bitcoin (US$)||8,512||8,81011||9,35211**|
* Reflects Bitcoin mined post deduction of mining pool fees (currently 0.5% x total Bitcoin mined).
** The increase in electricity costs per Bitcoin in May was primarily attributable to: (i) ~7% increase in the difficulty-implied global hashrate (~218 EH/s vs. ~204 EH/s) which resulted in a lower number of Bitcoin mined per unit of operating hashrate compared to April; and (ii) a higher interim unit cost of power at
|Miner Shipping Schedule12||Hardware||Units||PH/s (incremental)||PH/s
|Inventory – in transit||S19j Pro / S19j||3,030||295||1,460|
|Inventory – pending deployment||S19j Pro / S19j14||18,645||1,639||3,099|
|Q2 2022||S19j Pro / S19j||6,155||584||3,683|
|Q3 2022||S19j Pro / S19j||7,063||659||4,342|
|Q4 2022||S19j Pro / S19j||27,973||2,781||7,123|
|Q1 2023||S19j Pro||26,577||2,658||9,781|
|Q2 2023||S19j Pro||26,765||2,676||12,457|
|Q3 2023||S19j Pro||26,952||2,695||15,152|
|41||1.2||Q3 2022||Under construction|
|50||1.4||Q3 2022||Under construction|
|100||3.0||Q4 20227||Under construction|
|Total (miners secured)||530||15.2|
|Total (potential expansion)||795||~238|
- Focus on low-cost renewables:
Iris Energytargets markets with low-cost, excess and/or under-utilized renewable energy, and where the Company can support local communities
- Long-term security over infrastructure, land and power supply:
Iris Energybuilds, owns and operates its electrical infrastructure and proprietary data centers, providing long-term security and operational control over its assets
- Seasoned management team: Iris Energy’s team has an impressive track record of success across energy, infrastructure, renewables, finance, digital assets and data centers
Forward Looking Statements
This investor update includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or Iris Energy’s future financial or operating performance. For example, forward-looking statements include but are not limited to the expected increase in the Company’s power capacity, the Company’s business plan, the Company’s capital raising plans (including expectations regarding debt processes that are currently underway), and the expected schedule for commencing and/or expanding operations at the Company’s sites, and illustrative mining economics. In some cases, you can identify forward-looking statements by terminology such as “anticipate,” “believe,” “may,” “can,” “should,” “could,” “might,” “plan,” “possible,” “project,” “strive,” “budget,” “forecast,” “expect,” “intend,” “target”, “will,” “estimate,” “predict,” “potential,” “continue,” “scheduled” or the negatives of these terms or variations of them or similar terminology, but the absence of these words does not mean that statement is not forward-looking. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward looking statements. In addition, any statements or information that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking.
These forward-looking statements are based on management’s current expectations and beliefs. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause Iris Energy’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: Iris Energy’s limited operating history with operating losses; electricity outage, limitation of electricity supply or increase in electricity costs; long-term outage or limitation of the internet connection at Iris Energy’s sites; any critical failure of key electrical or data center equipment; serial defects or underperformance with respect to Iris Energy’s equipment; failure of suppliers to perform under the relevant supply contracts for equipment that has already been procured which may delay Iris Energy’s expansion plans; supply chain and logistics issues for
These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this investor update. Any forward-looking statement that
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1 Reflects Bitcoin mined post deduction of mining pool fees (currently 0.5% x total Bitcoin mined).
2 Electricity costs include actual cost of electricity at
3 Equipment financing is limited recourse financing within wholly owned subsidiaries of the Company.
4 Please see the Coinwarz Bitcoin Mining Calculator (https://www.coinwarz.com/mining/bitcoin/calculator). Inputs for 3.7 EH/s: 3,700 PH/s (hashrate), 130MW (power consumption) and
5 Publicly reported value.
6 Currently 98% directly from renewable energy sources; 2% from purchase of RECs.
7 Data center buildings targeted for completion by end of 2022; energization of data centers targeted for Q1 2023.
8 Equivalent hashrate potential for the available power capacity assuming installation of additional Bitmain S19j Pro miners.
9 Comprises actual power usage for
11 Electricity costs include actual cost of electricity at
12 All timing references are to calendar quarters and years.
13 Includes mix of lower efficiency hardware, which is estimated to represent less than 2% of the operating 1,165 PH/s.
14 Includes mix of lower efficiency hardware, which is estimated to represent less than 8% of miners pending deployment.
Photos accompanying this announcement are available at:
Canal Flats – ASIC miner maintenance and repair course attendees
Mackenzie – miners installed in the first 20MW data center
Mackenzie – internal fit out of the first 20MW data center complete
Prince George – structural steel erected for the first 20MW data center
Prince George – storage facility erected
Childress – site construction office and entrance
Childress – site civil works ongoing
Nest Disc Golf Course – Akisqnuk First Nation
Mackenzie – Spring Exposition 2022 trade fair
Daily average operating hashrate chart
Source: IRIS ENERGY LIMITED