Iris Energy (US:IREN)2025-05-14 22:00Financial Data and Key Metrics Changes - The company reported a net profit of $24 million for Q3 FY 2025, reflecting a 28% growth quarter on quarter [5][18] - Revenue reached a record $148 million for the quarter, up 24% from approximately $120 million in Q2 [5][18] - Adjusted EBITDA increased from $62 million to $83 million, marking a 32% rise [18][71] - The average operating hash rate grew to 29.4 exahash, a 30% increase from the previous quarter [14][71] Business Line Data and Key Metrics Changes - The Bitcoin mining segment averaged 29.4 exahash of operating capacity, representing a nearly 5x uplift year on year [6][14] - The AI cloud segment saw a 33% quarter on quarter revenue growth, with hardware profit margins of 97% [35] - The company is on track to reach 50 exahash of installed capacity by June 30, 2025, a 4x increase from 10 exahash in June 2024 [7][20] Market Data and Key Metrics Changes - The company noted a 326% year on year hash rate growth against a 40% increase in network difficulty, indicating market share gains [14] - The global AI data center demand is projected to grow three and a half times in the next five years, necessitating new infrastructure [40] Company Strategy and Development Direction - The company is focusing on value-accretive investments in both Bitcoin mining and AI infrastructure, pausing further mining expansion to allocate capital towards AI [7][25] - Significant build-outs are underway for AI data centers, including a 50 megawatt liquid cooled data center and a 2 gigawatt flagship hub in West Texas [9][62] - The company aims to transition to U.S. domestic issuer status to align reporting with U.S. GAAP and reflect its increased U.S. asset footprint [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued earnings momentum into fiscal Q4, driven by key growth initiatives [6] - The company is practicing disciplined capital allocation amid broader market volatility, emphasizing the importance of cash flow from Bitcoin mining to fund AI growth [11][25] - Management highlighted the competitive advantage in securing large-scale sites and power capacity to meet rising AI infrastructure demand [44][62] Other Important Information - The company is transitioning to U.S. GAAP reporting from July 1, 2025, which will impact the accounting for convertible notes and other financial instruments [74] - The company has $160 million in cash on the balance sheet, supporting its growth plans [67] Q&A Session Summary Question: How should we think about your appetite to fill out the available capacity of Prince George and growth beyond that? - The company is focused on capital and risk-adjusted returns, looking to match debt with customer contracts for growth in AI cloud services [79] Question: At what stage could it make sense to bring a partner in for joint ventures? - The company may need to bring in partners for project financing and debt, especially for large-scale developments like Sweetwater [81] Question: How is the AI cloud business performing in terms of uptime and utilization? - The company tracks a full range of metrics and receives positive feedback from customers, indicating strong performance compared to industry norms [90] Question: What milestones are you looking for to indicate progress towards formal agreements at Horizon One? - The company is in advanced negotiations with several customers and expects to finalize contracts ahead of commissioning in Q4 [94]