Core Viewpoint - IREN Limited has announced a private offering of $400 million in convertible senior notes with a 3.25% coupon rate, aimed at qualified institutional buyers, with the offering size increased from a previously announced $300 million [1][2]. Transaction Details - The offering includes $400 million of convertible senior notes with a 3.25% coupon and a 30% conversion premium [2]. - The notes will settle on December 6, 2024, and initial purchasers have the option to buy an additional $40 million within 13 days of issuance [2]. - The notes will mature on June 15, 2030, and interest will be paid semi-annually starting June 15, 2025 [5]. Use of Proceeds - IREN estimates net proceeds of approximately $386.5 million, or $425.4 million if the option for additional notes is fully exercised [3]. - Approximately $40.3 million will fund capped call transactions, $75.9 million for a prepaid forward transaction, and the remainder for general corporate purposes and working capital [4]. Capped Call Transactions - IREN has entered capped call transactions to hedge against dilution upon conversion of the notes, with an initial cap price of $25.86 per share, representing a 100% premium over the last reported share price [9][10]. - The capped call transactions are expected to reduce potential dilution and offset cash payments required upon conversion [11]. Prepaid Forward Transaction - IREN has also entered a prepaid forward share purchase transaction for approximately $75.9 million of its ordinary shares, to be settled shortly after the notes' maturity [14]. - This transaction is intended to facilitate derivative transactions and allow investors to establish short positions related to IREN's ordinary shares [15]. Company Overview - IREN is a leading data center business focused on Bitcoin mining and AI cloud services, utilizing 100% renewable energy [22]. - The company operates data centers with a capacity of 460MW, expanding to 810MW in H1 2025, and has secured a development portfolio of 2,310MW of grid-connected power across North America [23].

Offering Details - IREN Limited announced its intention to offer $300 million aggregate principal amount of convertible senior notes due 2030 in a private offering to qualified institutional buyers [1] - The company expects to grant initial purchasers an option to purchase up to an additional $45 million principal amount of notes [1] - The notes will be senior, unsecured obligations, accrue interest payable semi-annually, and mature on June 15, 2030 [2] - Noteholders will have the right to convert their notes under certain circumstances, with IREN settling conversions through cash, ordinary shares, or a combination of both [2] Redemption and Repurchase Terms - The notes will be redeemable for cash at IREN's option starting December 20, 2027, if certain conditions are met, including the share price exceeding 130% of the conversion price [3] - In the event of a "fundamental change," noteholders may require IREN to repurchase their notes for cash at the principal amount plus accrued interest [4] Use of Proceeds - IREN plans to use a portion of the net proceeds to fund capped call transactions and a prepaid forward transaction [5] - The remainder of the net proceeds will be used for general corporate purposes and working capital [5] Capped Call Transactions - IREN expects to enter into capped call transactions with option counterparties to reduce potential dilution upon conversion of the notes [6] - The capped call transactions will cover the number of ordinary shares underlying the notes and may be adjusted if additional notes are purchased [6] - These transactions aim to offset potential cash payments exceeding the principal amount of converted notes, subject to a cap price [7] Market Impact and Hedging Activities - Option counterparties may enter into derivative transactions or purchase IREN's ordinary shares to establish initial hedges, potentially affecting the market price of IREN's shares [8][9] - The forward counterparty may modify hedge positions through derivative transactions or secondary market activities, which could influence the market price of IREN's shares and notes [10][16] Prepaid Forward Transaction - IREN expects to enter into a prepaid forward transaction to purchase up to $100 million of its ordinary shares, subject to early settlement [11] - This transaction is intended to facilitate derivative transactions between the forward counterparty and investors, allowing investors to establish short positions in IREN's shares [12] - The prepaid forward transaction could increase the market price of IREN's shares and raise the initial conversion price of the notes [13] Company Overview - IREN is a leading data center business focused on Bitcoin mining, AI cloud services, and next-generation data centers, utilizing 100% renewable energy [19][20] - The company operates 460MW of data centers, with plans to expand to 810MW by H1 2025, and has a development portfolio of 2,310MW of grid-connected power [20] - IREN's Bitcoin mining operations aim to reach 50 EH/s by H1 2025, and its AI cloud services utilize 1,896 NVIDIA H100 & H200 GPUs [20]

Core Viewpoint - A lawsuit has been filed against Iris Energy Limited on behalf of investors who purchased its securities between June 20, 2023, and July 11, 2024, following allegations of misrepresentation regarding the company's business model and potential in high-performance computing and AI applications [1][3]. Company Overview - Iris Energy Limited, based in Sydney, Australia, positions itself as a leading next-generation data center business focused on Bitcoin and AI [3]. Legal Proceedings - Investors who suffered losses during the specified class period can seek to be appointed as lead plaintiff representatives by December 6, 2024 [3]. - The lawsuit follows a report by Culper Research published on July 11, 2024, which accused Iris Energy of misrepresenting its capabilities and strength in the HPC and AI sectors [3]. Market Reaction - Following the publication of the report, Iris Energy's share price dropped by 15%, closing at $11.20 per share on July 11, 2024 [4].

Core Viewpoint - The Iris Energy Limited class action lawsuit alleges that the company and its executives made misleading statements regarding its business prospects, particularly related to data centers and high-performance computing, leading to significant stock price declines [3][4]. Group 1: Class Action Lawsuit Details - The class action lawsuit is titled Williams-Israel v. Iris Energy Limited, No. 24-cv-07046 (E.D.N.Y.), and it involves purchasers of Iris Energy securities from June 20, 2023, to July 11, 2024 [1]. - Investors have until December 6, 2024, to seek appointment as lead plaintiff in the lawsuit [1]. - The lawsuit claims that Iris Energy overstated its prospects due to deficiencies at its Texas site [3]. Group 2: Stock Price Impact - Following a report by Culper Research on July 11, 2024, which criticized Iris Energy, the company's stock price fell by more than 15% [4]. Group 3: Legal Process and Representation - The Private Securities Litigation Reform Act of 1995 allows any investor who purchased Iris Energy securities during the class period to seek lead plaintiff status [5]. - The lead plaintiff represents the interests of all class members and can choose a law firm for litigation [5]. Group 4: Firm Background - Robbins Geller Rudman & Dowd LLP is a leading law firm in securities fraud cases, having recovered $6.6 billion for investors in class action cases [6]. - The firm has been ranked 1 in securing monetary relief for investors in six of the last ten years [6].

Core Viewpoint - IREN Limited has successfully increased its self-mining capacity to 28 EH/s and is on track to reach 31 EH/s this month, with plans to expand to 50 EH/s by H1 2025, leveraging low electricity costs and efficient operations [1][2][4]. Capacity Expansion - IREN's installed capacity has risen from 21 EH/s to 28 EH/s, achieving a 33% increase following the energization of the Childress Phase 3 substation [2][3]. - The company expects to complete the construction of its data centers and reach 31 EH/s of installed capacity within the month [2][3]. Operational Efficiency - IREN maintains a sufficient inventory of miners to support the 31 EH/s target, with four data center buildings already operational and two more nearing completion [3]. - The all-in cash cost per Bitcoin is approximately $29,000, reflecting the company's best-in-class fleet efficiency and low electricity costs [3][5]. Future Growth Plans - IREN is accelerating its expansion plans to achieve 50 EH/s and 810 MW of data centers by H1 2025, moving the timeline up from H2 2025 [4]. - The expansion includes ongoing construction of Childress Phase 4 and 5, which will add 300 MW of capacity [4]. Technological and Infrastructure Development - The company has secured 2,310 MW of grid-connected power across North America and has a property portfolio exceeding 1,000 acres, supporting its growth strategy [12]. - IREN utilizes 100% renewable energy for its operations, targeting sites with low-cost renewable energy to enhance sustainability [12].

Core Viewpoint - Iris Energy Limited is facing a class action lawsuit for allegedly making false statements regarding its business prospects and failing to disclose material deficiencies at its Texas site, leading to significant stock price declines [3][4]. Group 1: Class Action Lawsuit Details - The class action lawsuit is titled Williams-Israel v. Iris Energy Limited and covers purchasers of Iris Energy securities from June 20, 2023, to July 11, 2024 [1]. - Investors have until December 6, 2024, to seek appointment as lead plaintiff in the lawsuit [1]. - The lawsuit alleges that Iris Energy overstated its capabilities in data centers and high-performance computing [3]. Group 2: Impact on Stock Price - Following the release of a report by Culper Research on July 11, 2024, which criticized Iris Energy, the company's stock price fell by more than 15% [4]. Group 3: Legal Process and Representation - The Private Securities Litigation Reform Act of 1995 allows any investor who purchased Iris Energy securities during the class period to seek lead plaintiff status [5]. - The lead plaintiff will represent the interests of all class members and can choose a law firm for litigation [5]. Group 4: About Robbins Geller - Robbins Geller Rudman & Dowd LLP is a prominent law firm specializing in securities fraud cases, having recovered $6.6 billion for investors in class action cases [6]. - The firm has been ranked 1 in securing monetary relief for investors in six out of the last ten years [6].

Core Viewpoint - The cryptocurrency market is experiencing a bullish trend following Donald Trump's election victory, with Bitcoin surpassing $90,000, positively impacting crypto-related stocks like Iris Energy, a sustainable Bitcoin mining company [1]. Company Performance - Iris Energy has leveraged 100% renewable energy, resulting in a stock price increase of over 49% in the past month, closing at $13.51 with a year-to-date increase of 98% [2]. - In October, Iris Energy mined 439 Bitcoin, leading to a 32% increase in monthly revenue to $28.2 million, while reducing electricity costs per Bitcoin mined by 12% [3]. Growth Strategy - The company plans to increase its operating hash rate from 21 EH/s to 31 EH/s by year-end and aims for 50 EH/s by mid-2025, indicating significant growth potential [4]. - Iris Energy is set to generate $32 million annually in AI hardware profits by 2024, utilizing its data center infrastructure for new revenue streams [4][5]. Analyst Upgrades - Cantor Fitzgerald raised Iris Energy's price target to $23 from $20, citing the company's lower enterprise-value-to-hash-rate multiple and potential to become the lowest-cost miner [7]. - Canaccord Genuity increased its price target to $17 from $15, highlighting competitive power costs and favorable hash rate ramp during Bitcoin's rally [8]. - HC Wainwright & Co. raised its price target from $13 to $16, indicating an 18.43% upside, while Needham maintained a Hold rating [8]. Investor Sentiment - The upgrades from analysts reflect growing confidence in Iris Energy's dual focus on sustainable Bitcoin mining and AI cloud services, positioning the company for long-term growth [9]. - Iris Energy has indicated potential shareholder distributions by 2025, including the possibility of a Bitcoin dividend, which enhances investor interest [9].

Core Insights - Iris Energy Limited (NASDAQ: IREN) is leading in sustainable innovation across Bitcoin mining, high-performance computing (HPC), and artificial intelligence (AI) cloud services [1] - The company has expanded its operations in North America and Australia, utilizing exclusively renewable energy sources [1] Group 1 - Iris Energy focuses on sustainable practices in its business operations [1] - The company is actively involved in three key areas: Bitcoin mining, HPC, and AI cloud services [1] - The expansion of operations is a strategic move to enhance its market presence in North America and Australia [1]

Financial Data and Key Metrics Changes - The company achieved an adjusted EBITDA of $2.6 million with Bitcoin mining revenue of $54.3 million and AI Cloud services revenue of $3.2 million [67] - The average operating cash rate increased from 9 exahash to 12.1 exahash during the quarter [68] - Closing cash at the bank was reported as $98.6 million, with cash increasing to $182.4 million by October 31, 2024 [70][72] Business Line Data and Key Metrics Changes - The company mined 821 Bitcoin at an average realized price of $66,000 [68] - Net electricity costs increased by $4.6 million to $28.7 million, primarily due to increased usage at the Childress site [69] - The transition to a spot pricing strategy for electricity procurement at Childress is expected to reduce the cost of Bitcoin mined to $26,700 if applied for the entire quarter [69] Market Data and Key Metrics Changes - The company is positioned as a low-cost commodity producer, with an expected cash cost of $29,000 per Bitcoin [9][22] - The average power cost at Childress is reported to be over $0.03 per kilowatt-hour, contributing to lower overall costs [30] Company Strategy and Development Direction - The company plans to accelerate its expansion to 50 exahash in the first half of next year, previously targeted for the second half [12] - The strategy focuses on large-scale projects to provide lower execution risk and rapid expansion at low cost [13][25] - The company aims to transition to a U.S. domestic issuer status in 2025 and is working towards inclusion in major U.S. indices [21][22] Management's Comments on Operating Environment and Future Outlook - Management noted that the Bitcoin mining sector is at an inflection point, with institutional interest returning to the space [7] - The company is optimistic about generating substantial operating cash flows in the near term, supporting potential investor distributions in 2025 [22][63] - Management emphasized the importance of prudent capital management and generating strong cash-on-cash shareholder returns [23] Other Important Information - The company has secured 2.3 gigawatts of contracted capacity, with a focus on sites with executed interconnection agreements [55][58] - The Sweetwater Data Center project is expected to be one of the largest Bitcoin mining facilities or AI factories in the world, capable of supporting over 90 exahash of Bitcoin mining or over 800,000 GPUs [54] Q&A Session Summary Question: Strategic process versus organic opportunity at Sweetwater - Management is preparing for both Bitcoin mining and AI-related opportunities, comparing each pathway as an opportunity cost [76][79] Question: Capital intensity on the Bitcoin Mining business - The funding requirement to go from 30 to 50 exahash is approximately $400 million, with ongoing discussions about capital needs [81] Question: Bitcoin price and self-funded growth - Operating cash flows are expected to be substantial, allowing for potential distributions to investors while maintaining a focus on reinvestment [87][89] Question: Long-lead time items for Sweetwater - Long-lead procurement is set up to enable full capacity on the high-voltage substation by April 2026, with a progressive build-out of data center capacity [92] Question: Fiber interconnect at Sweetwater - Access to fiber is not an issue, with multiple Tier-1 carriers available, ensuring low latency suitable for both AI applications and Bitcoin mining [94] Question: Demand post-FERC announcement - There is perceived increased demand, but management emphasizes the importance of closing deals to create tangible value for shareholders [117] Question: Future plans for AI cloud business - The company is taking a measured approach to GPU investments, focusing on Bitcoin opportunities while monitoring market conditions for AI [120]

Core Viewpoint - Rosen Law Firm is reminding investors who purchased securities of Iris Energy Limited during the specified Class Period of the upcoming lead plaintiff deadline on December 6, 2024 [1]. Group 1: Class Action Details - Investors who purchased Iris Energy securities between June 20, 2023, and July 11, 2024, may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [2]. - A class action lawsuit has already been filed, and interested parties can join by contacting the law firm [3][6]. - The lawsuit alleges that Iris Energy made materially false and misleading statements regarding its business prospects, particularly related to its data centers and high-performance computing capabilities [5]. Group 2: Law Firm Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved significant settlements, including the largest securities class action settlement against a Chinese company at the time [4]. - The firm has been consistently ranked among the top firms for securities class action settlements and has recovered hundreds of millions of dollars for investors [4].