SYDNEY - IREN (NASDAQ: IREN), a company specializing in next-generation data centers, has released its monthly investor update for May 2024, highlighting substantial growth in its Bitcoin mining and AI cloud services, along with significant expansion of its data center operations.
In the realm of Bitcoin mining, IREN reported mining 230 Bitcoin in May, with an average operating hashrate of 9.4 EH/s, which is now expanded to 10 EH/s.
Despite a decrease in Bitcoin mined due to the reduced block subsidy post-halving, the company managed to offset this partially through a 14% increase in its average operating hashrate. IREN has ambitious plans to increase its mining capacity to 20 EH/s in the third quarter and 30 EH/s in the fourth quarter of 2024. The company has secured the latest-generation Bitmain S21 Pro miners to support this growth.
The AI Cloud Services division is currently operating 816 NVIDIA (NASDAQ:NVDA) H100 GPUs and servicing clients such as Poolside AI. These GPUs are expected to generate approximately $14-$17 million of annualized hardware profit, with a payback period of around 24 months. IREN is actively engaged in customer discussions for both cloud and colocation solutions and is exploring financing opportunities to support further growth.
IREN's data center footprint is also expanding, with 260MW currently operational and an additional 510MW planned by the end of 2024. The Childress Phase 2 and 3 constructions in Texas are progressing on schedule, with completion expected in the third and fourth quarters of 2024, respectively. The company's expansion strategy is supported by a power and land portfolio exceeding 3,000MW.
On the corporate front, IREN reported a cash position of $322 million with no debt as of April 30, 2024. The third-quarter financial results for FY24 revealed record revenue, adjusted EBITDA, and operating cash flow. Additionally, the company has partnered with the District of Mackenzie to provide high-speed fiber-optic connectivity to the area, enhancing local connectivity and providing redundancy for its data center.
Upcoming events for IREN include participation in various industry conferences and investor events in Toronto, New York City, and Nashville throughout June and July 2024.
This report is based on a press release statement from IREN and reflects the company's performance and expansion plans as of May 2024.
In other recent news, IREN, a significant player in the Bitcoin mining industry, has reported substantial growth in its operations during its Third Quarter FY 2024 Investor Update. The company's Bitcoin mining operating capacity is set to reach an impressive 30 exahash by year-end, surpassing the initial guidance of 20 exahash. This growth is supported by new data center constructions and a transaction with Bitmain, a leading producer of mining hardware.
Additionally, IREN's AI cloud service business is witnessing growth, and the company is exploring monetization strategies for its power and land assets. The company has secured funding for its expansion to 20 exahash and is actively pursuing additional funding opportunities. Morgan Stanley (NYSE:MS) and Goldman Sachs (NYSE:GS) have validated the value of the power and land portfolio.
Regarding earnings, the company reported a positive cash flow from operations at $48 million and a positive net profit before tax of $12 million for the quarter. Analysts indicate a potential increase to 40 exahash in the first half of 2025, further solidifying IREN's position in the industry. These are the recent developments, reflecting IREN's commitment to driving shareholder value and positioning itself as a leading publicly listed miner.
InvestingPro Insights
In the fast-paced world of technology and cryptocurrency, IREN (NASDAQ: IREN) is making notable strides, as evidenced by their recent investor update. The company's focus on expanding its Bitcoin mining capacity and AI cloud services is reflected in the substantial growth metrics and strategic moves.
With a current market capitalization of $1.33 billion, IREN's financial health is robust, holding a cash position that outweighs its debt. This is a positive sign for investors, as it suggests the company is well-capitalized to fund its ambitious expansion plans without the pressure of significant debt repayments.
InvestingPro Tips indicate that analysts are optimistic about IREN's future, expecting sales growth in the current year and predicting the company will turn profitable. These insights align with IREN's report of record revenue and adjusted EBITDA, reinforcing the company's upward trajectory. Moreover, the company's impressive gross profit margin of 88.16% over the last twelve months as of Q3 2024, highlights its ability to efficiently manage its cost of goods sold, which is particularly crucial in the capital-intensive data center industry.
IREN's stock performance has also been noteworthy, with significant returns over the last week, month, six months, and year. Specifically, the one-week price total return as of the specified date in 2024 is 22.27%, and the one-year price total return is an impressive 164.91%. This suggests that the company's operational achievements and growth prospects are resonating well with the market.
For investors looking to delve deeper into IREN's financials and future prospects, InvestingPro offers additional insights. With the use of the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to a total of 17 InvestingPro Tips for IREN, including advanced metrics and analyst predictions.
As IREN continues to expand its data center operations and capitalize on the burgeoning demand for Bitcoin mining and AI cloud services, these InvestingPro Insights offer a snapshot of the company's financial health and market performance, which could be valuable for potential investors and current shareholders alike.
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