Iris Energy Limited (IREN) Investor Update Conference Call Transcript

Key Points Company and Industry * Company: Iris Energy Limited (NASDAQ:IREN) * Industry: Bitcoin mining and data center operations Core Views and Arguments * 5.5 Exahash Fully Operational: Iris Energy has successfully completed the construction of its 5.5 exahash mining facility, which is now fully operational and generating around $7 million to$8 million in monthly mining profit. * Expansion Plans: The company plans to add 20% capacity to its current 5.5 exahash, aiming to reach 6.5 exahash. This expansion will involve optimizing existing infrastructure and adding an additional 100 petahash to 0.1 exahash, as well as building out an additional 20 megawatts at Childress. * BITMAIN S-19 XP Miners: Iris Energy plans to prioritize the procurement of BITMAIN S-19 XP miners for its expansion, aiming to further reduce production costs and lower its cost curve. * Liquidity and Funding: The company has $55 million in cash and no debt, providing strong liquidity and flexibility for future growth. It is also fully funded for its expansion plans. * **Childress Site**: The Childress site in Texas represents a transformational growth opportunity for Iris Energy. The company owns 600 megawatts of power and has 580 megawatts of power ready to go, with 20 megawatts currently operating. It plans to expand the site over time as market conditions allow. * **Trading Power**: Iris Energy has developed a proprietary system that allows it to trade power live time in the ERCOT market, providing flexibility and downside protection. The company can choose to either use the power for mining or sell it back to the market, depending on market conditions. * **Financial Performance**: Iris Energy expects its annualized mining profits to increase from approximately$90 million to $110 million per annum with the expansion to 6.5 exahash. The company also expects its overheads to remain relatively stable as it scales up its operations. Other Important Content * Management Team: Iris Energy's management team remains highly aligned and committed to the future of the business, with the founders, board, and management team holding over 20% of the register. * Geographically Diversified Platform: Iris Energy has built a geographically diversified real asset platform across North America, with sites in British Columbia and Texas. * In-House R&D and Engineering: Iris Energy has an in-house R&D and engineering team that provides support to all of its sites, ensuring optimal efficiency and performance.