IREN to increase AI Cloud Services to 10% of earnings

Core Viewpoint - Iris Energy Limited (IREN) is expanding its AI Cloud Services by purchasing 1,080 NVIDIA H200 GPUs for $43.9 million, which is expected to increase the AI Cloud Services contribution to earnings to approximately 10% by the end of 2024 [1][2][3]. Expansion of AI Cloud Services - The purchase of the GPUs is part of IREN's strategy to meet strong demand for new-generation GPUs and is expected to enhance its AI Cloud Services business significantly [1][2]. - The delivery and commissioning of the GPUs are anticipated in the fourth quarter of 2024 [2]. Expansion of Bitcoin Mining - IREN's current installed capacity for Bitcoin mining is 18.8 EH/s, with plans to expand to 20 EH/s this month and 30 EH/s by the fourth quarter of 2024 [2][3]. - The company aims to maintain a high efficiency of 16.3 J/TH, which is projected to improve to 15 J/TH with the expansion [3]. Business Mix and Financial Projections - By the end of 2024, AI Cloud Services are estimated to contribute around $33 million in revenue, while Bitcoin mining is projected to generate $460 million [5]. - The overall profit from hardware is estimated at $32 million for AI Cloud Services and $304 million for Bitcoin mining, indicating a business mix of approximately 10% from AI Cloud Services and 90% from Bitcoin mining [5]. Infrastructure and Technology - IREN operates a data center portfolio of 510 MW, with plans to expand to 330 MW of operating data centers [14]. - The company utilizes 100% renewable energy for its operations, supporting sustainability and efficiency in both AI Cloud Services and Bitcoin mining [14].