Iris Energy (US:IREN)2024-08-29 01:30Financial Data and Key Metrics Changes - The adjusted EBITDA for the fiscal year ended June 30, 2024, is reported at $54.7 million, a significant year-on-year increase of $53.3 million, marking the highest recorded EBITDA for the company [24] - Bitcoin mining revenue increased from $75 million to $184 million, with an average operating hash rate rising from 5.6 exahash to 9.4 exahash, resulting in 4,191 Bitcoin mined and an average realized price of $44,000, an 89% increase year-on-year [24][25] - Average net electricity costs per Bitcoin mined increased from $11,000 to $18,100, primarily due to the increase in global hash rate and the impact of the halving event in April 2024 [25] Business Line Data and Key Metrics Changes - The AI Cloud Services business recorded revenue of $3.1 million during the financial year, indicating a new revenue stream for the company [25] - The company has increased its installed capacity for Bitcoin mining to 15 exahash, with a target of reaching 20 exahash by the end of next month and 30 exahash by the end of the year [3][6] Market Data and Key Metrics Changes - The company has secured 2,310 megawatts of grid-connected capacity and has over 1 gigawatt of additional development sites worldwide [5][20] - The average monthly power price at the Childress site for August was reported at 3.1 cents, equating to approximately $23,000 per Bitcoin mined [14] Company Strategy and Development Direction - The company aims to continue expanding its Bitcoin mining capacity while also leveraging its infrastructure for AI cloud services, indicating a dual focus on both sectors [3][16] - The management emphasizes the importance of securing additional power and land to support future growth, reflecting a long-term vision for scalability in both Bitcoin mining and AI services [20][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to control its growth trajectory in Bitcoin mining, citing the significant power capacity available for future expansion [31] - The management acknowledged the complexities involved in AI cloud services but remains optimistic about the potential for growth in this area as the company builds its reputation and customer base [38] Other Important Information - The company reported a strong cash position of $404.6 million with no external debt, providing flexibility for future growth initiatives [28] - The company has appointed Morgan Stanley to evaluate AI data center opportunities for its 1.4 gigawatt West Texas site, indicating ongoing strategic evaluations for asset monetization [21] Q&A Session Summary Question: Any material updates since the New York analyst update? - Management indicated that while there are no materially different decisions, ongoing learning continues to refine their strategies, particularly in Bitcoin mining where they feel in control of their destiny [30][31] Question: Thoughts on further site acquisition versus CapEx for site build-out? - Management emphasized the importance of acquiring more power and land, believing in the long-term scarcity of these resources as demand continues to grow [33][34] Question: Focus of recent key hires related to HPC? - Management noted that while there is potential for GPU purchases, they are cautious about diluting shareholder value and are focused on ensuring the right risk-return structure in contracts [36][38] Question: How to decide between long-term contracts versus on-demand customers for Poolside capacity? - Management aims to pursue both strategies while retaining flexibility, indicating a balanced approach to market opportunities [42] Question: Outlook for hash prices and market dynamics? - Management highlighted that Bitcoin prices are the key driver for hash prices, and while they cannot predict short-term movements, they believe in a long-term upward trend for Bitcoin [47] Question: Issues with T21 miners and replacement timeline? - Management acknowledged manufacturing defects with T21 miners but praised Bitmain's response and indicated that approximately 1.5 exahash of capacity is being replaced [48]