SYDNEY - IREN (NASDAQ: IREN), a company specializing in Bitcoin mining and AI cloud services, has released its monthly investor update, showcasing a significant increase in Bitcoin mining revenue and a strategic expansion in AI cloud services. The company mined 347 Bitcoins in September 2024, a notable increase from previous months, and forecasts continued growth with an installed capacity of 21 exahashes per second (EH/s), targeting 31 EH/s by the fourth quarter of 2024.
The update highlighted a 42% rise in Bitcoin mining revenue to $21.4 million for September, attributed to capacity expansion and a 21% reduction in electricity cost per Bitcoin to $23,600, thanks to improved fleet efficiency. IREN has commenced receiving deliveries of Bitmain S21 XP (NASDAQ:XP) miners, which supports an anticipated $336 million in annualized hardware profit.
In the realm of AI cloud services, IREN experienced a temporary revenue dip in September due to re-contracting efforts, but the company has since secured seven new deals and served ten customers since inception. With an additional 1,080 NVIDIA (NASDAQ:NVDA) H200 GPUs set to join the company's fleet, IREN anticipates these services will contribute approximately 10% to run-rate earnings by year-end.
The company's data center operations are also expanding, with 360 megawatts (MW) currently operational and plans to increase capacity to 510MW in 2024. The Childress data center in Texas is a significant part of this expansion, with phases 2 and 3 completed or underway and further expansion planned for 2025 and beyond.
IREN's commitment to community engagement was demonstrated through its Community Grants Program, which supports local initiatives in areas where the company operates. The Mackenzie event in September is part of a series that will continue in the coming months.
The investor update indicates IREN's strategic positioning for growth in both Bitcoin mining and AI cloud services, with an emphasis on efficiency and expansion. The company is scheduled to participate in several upcoming industry events, including conferences in Sydney, Miami, Atlanta, and New York.
This report is based on a press release statement from IREN, and it reflects the company's performance and projections without endorsing any claims.
In other recent news, Iris Energy, a cryptocurrency mining company, has reported several significant updates. The company has achieved an operational milestone by reaching an installed capacity of 20 exahashes per second (EH/s) ahead of schedule, primarily for Bitcoin self-mining operations. Iris Energy has also made a substantial investment in its AI Cloud Services division with the acquisition of 1,080 NVIDIA H200 GPUs, aiming to boost its AI Cloud Services earnings to approximately 10% of its total by year-end.
In the realm of analyst coverage, Roth/MKM initiated coverage on Iris Energy with a Buy rating, emphasizing the company's significant presence in the energy sector and the potential for considerable upside potential. B.Riley adjusted its stock price target for Iris Energy from $17.00 to $12.00, retaining its Buy rating, while Macquarie maintained its Outperform rating, raising the stock's price target to $13.50 from $12.00.
These recent developments underscore Iris Energy's robust growth in mining and AI cloud services. The company's current installed capacity for Bitcoin mining stands at 18.8 EH/s, with plans to increase this to 30 EH/s by the fourth quarter of 2024. Iris Energy's revenue projections for the end of 2024 indicate that AI Cloud Services could generate around $33 million, compared to $460 million from Bitcoin mining. The company remains committed to utilizing 100% renewable energy for its operations.
InvestingPro Insights
IREN's recent performance and strategic initiatives align with several key insights from InvestingPro. The company's impressive revenue growth of 149.98% over the last twelve months, as reported by InvestingPro, reflects the significant increase in Bitcoin mining revenue highlighted in the monthly update. This growth trajectory is further supported by an InvestingPro Tip indicating that analysts anticipate sales growth in the current year.
The company's gross profit margin of 88.24% for the last twelve months underscores IREN's operational efficiency, particularly in light of the reported 21% reduction in electricity cost per Bitcoin. This efficiency is highlighted by an InvestingPro Tip noting IREN's impressive gross profit margins.
Despite the strong revenue growth and operational improvements, InvestingPro data shows that IREN is not yet profitable over the last twelve months, with an operating income margin of -14.39%. However, an InvestingPro Tip suggests that analysts predict the company will be profitable this year, which aligns with IREN's positive outlook and expansion plans in both Bitcoin mining and AI cloud services.
For investors seeking a more comprehensive analysis, InvestingPro offers 16 additional tips for IREN, providing a deeper understanding of the company's financial health and market position.
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