SYDNEY - Iris Energy Limited (NASDAQ: IREN), a company engaged in next-generation data center operations for Bitcoin mining and AI applications, announced today the appointment of Morgan Stanley (NYSE:MS) & Co. LLC as its financial advisor. The collaboration is aimed at exploring monetization possibilities within the AI data center sector.
The company, which has been operational since 2019, is expanding its Bitcoin mining capacity to 30 EH/s and has recently ventured into AI cloud services with 816 NVIDIA (NASDAQ:NVDA) H100 GPUs. Iris Energy's data centers, powered entirely by renewable energy, currently have a capacity of 260MW, with plans to increase to 510MW.
Additionally, Iris Energy maintains a development portfolio with 2,160MW of secured power capacity across North America and over 1,000 acres of property. Their technology stack is designed for high-performance computing applications, including AI Cloud Services, Bitcoin mining, and energy trading operations.
The use of 100% renewable energy is a cornerstone of the company's operations, targeting sites that offer low-cost and underutilized renewable resources. This approach not only supports the electrical grids but also benefits local communities.
While the company has outlined ambitious growth strategies and operational plans, including the expansion into high-performance computing solutions, these forward-looking statements are subject to various risks and uncertainties that could affect actual results.
Factors such as Bitcoin price volatility, the ability to secure additional capital, and the successful execution of growth strategies play a significant role in the company's future performance.
The information for this update is based on a press release statement from Iris Energy Limited, which also includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect the company's current expectations and are not guarantees of future performance, as they involve known and unknown risks and uncertainties.
In other recent news, Iris Energy has reported substantial advancements in both revenue and earnings. The company noted a positive cash flow from operations at $48 million and a net profit before tax of $12 million.
Bitcoin mining operations mined 233 Bitcoin in June, with an anticipated increase in hash rates in the upcoming quarters. Iris Energy's AI Cloud Services division also saw a 21% revenue increase in June.
B.Riley adjusted its price target for Iris Energy from $18.00 to $17.00, while maintaining a Buy rating on the stock. Cantor Fitzgerald has given the company an Overweight rating and a price target of $23.00. Iris Energy's expansion plans for 2024 are fully funded, with a cash reserve of $425.3 million and no debt.
The company's hash rate capacity is projected to surge from the current 9.4 EH/s to over 40 EH/s by mid-2025. Iris Energy is expected to reach 30 EH/s in Bitcoin mining capacity and grow its data center operations to 510MW by the year-end. These are recent developments, reflecting Iris Energy's commitment to driving shareholder value and positioning itself as a leading publicly listed miner.
InvestingPro Insights
Iris Energy Limited (NASDAQ: IREN) is making significant strides in the data center and Bitcoin mining industry, with a keen eye on sustainability and growth. The company's recent collaboration with Morgan Stanley & Co. LLC underscores its commitment to exploring new opportunities in the AI data center sector.
InvestingPro data indicates that Iris Energy has a market capitalization of $2.24 billion and boasts a remarkable gross profit margin of 88.16% for the last twelve months as of Q3 2024. This financial strength is further highlighted by the company's impressive revenue growth of 379.82% in Q3 2024, showcasing its rapid expansion and potential in the high-performance computing market.
Despite the lack of profitability over the last twelve months, with an adjusted P/E ratio reported at -245.64, the company's stock has experienced a strong return over the last year, with a 68.0% price total return. This could be a reflection of investor confidence in the company's future prospects and its strategic initiatives.
InvestingPro Tips for Iris Energy suggest analysts are optimistic about the company's trajectory. They predict not only sales growth in the current year but also anticipate the company will turn profitable. Moreover, Iris Energy is recognized for holding more cash than debt on its balance sheet, which is a reassuring sign of financial stability for investors.
For those interested in deeper analysis and more InvestingPro Tips, visit https://www.investing.com/pro/IREN. There are additional insights available, including tips on the company's high return over the last three months and its liquid assets exceeding short-term obligations. To access these valuable tips and more, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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