IREN Reports Full Year FY24 Results

Record Adjusted EBITDA of $54.7 million in FY24 On track for 30 EH/s in 2024 AI business strategy update SYDNEY, Aug. 28, 2024 (GLOBE NEWSWIRE) -- IREN (Iris Energy Limited) (NASDAQ:IREN) (together with its subsidiaries, "IREN" or "the Company"), a leading next-generation data center business powering the future of Bitcoin, AI and beyond, today reported its financial results for the full year ended June 30, 2024. All $ amounts are in United States Dollars ("USD") unless otherwise stated. "We are pleased to report our full year FY24 results, which highlights continued growth across revenue, earnings and cashflow," said Daniel Roberts, Co-Founder and Co-CEO of IREN. "Our 2024 guidance remains unchanged. With 15 EH/s installed, we are well on track to achieve our 20 EH/s milestone next month and 30 EH/s this year." Full Year FY24 Results EBITDA of $19.6 million, as compared to $(123.2) million in fiscal year 20231 Adjusted EBITDA of $54.7 million, as compared to $1.4 million in fiscal year 20231 Record Bitcoin mining revenue of $184.1 million, as compared to $75.5 million in fiscal year 2023, driven by growth in operating hashrate and higher Bitcoin prices Record 4,191 Bitcoin mined, as compared to 3,259 Bitcoin in fiscal year 2023, primarily driven by growth in operating hashrate AI Cloud Services revenue of $3.1 million, servicing multiple customers across the reserved and on-demand market Net electricity costs2 of $76.0 million, as compared to $35.8 million in fiscal year 2023, primarily driven by an increase in operating hashrate, with 80MW of additional capacity commissioned during the year Other costs of $56.5 million, as compared to $38.4 million in fiscal year 20233 Reflects a larger business today that is delivering significant growth, and projecting continued expansion over the coming years Procurement of RECs, consistent with our commitment to utilizing 100% renewable energy Additional head office resources to support growth, and expanded risk, compliance and reporting obligations Increased site expenses to support design, management and delivery of our Childress operations Includes $6.3 million provision for Canadian non-refundable sales tax Net loss after income tax of $29.0 million, as compared to a loss of $171.9 million in fiscal year 2023 Operating cash inflow of $52.7 million, as compared to $6.0 million in fiscal year 2023 Cash and cash equivalents of $404.6 million as of June 30, 2024 and no debt facilities4 Recent Operational Highlights Data Centers Morgan Stanley process to evaluate AI data center opportunities in relation to 1.4GW West Texas site underway: Non-disclosure agreements signed Information being provided to interested parties Colocation, AI Cloud Services and other structures also being discussed with prospective partners in relation to British Columbia and Childress sites Increased grid-connected power secured from 760MW to 2,310MW over the last 12 months Date center expansion to 510MW in 2024 Childress Phase 2 (100MW, 3Q CY24) – 100MW substation energized, 40MW data centers commissioned Childress Phase 3 (150MW, 4Q CY24) – Foundational, structural and electrical works ongoing for 6 x 25MW data centers Bitcoin Mining Increased self-mining capacity from 5.6 EH/s to 10 EH/s through FY245 Successful transition to spot pricing from August 2024 Historically challenging for energy retailers to provide spot power to Bitcoin miners Scale and demonstrated robustness of IREN curtailment systems has now enabled transition to a spot pricing contract effective August 1, 2024 Spot pricing with curtailment allows IREN to optimize power costs in real-time, avoiding prior hedging costs and risks One-off cost of $7.2 million to close out August and September 2024 hedges Childress August 2024 month-to-date electricity cost of 3.1 c/kWh (~$23k electricity cost per Bitcoin mined)6 On track for 30 EH/s in 2024 15 EH/s installed (August 28, 2024) 20 EH/s next month, 30 EH/s in next 4 months (fully funded) Secured 10.5 EH/s of latest-generation Bitmain S21 XP miners Purchase price of $21.5/TH,7 with 20% deferred until 9 months after shipping Shipping scheduled for October and November 2024, to support expansion to 30 EH/s Improves overall nameplate fleet efficiency to 15 J/TH at 30 EH/s Supports indicative electricity cost per Bitcoin mined of ~$19k8 at 30 EH/s Pathway from 30 EH/s to 50 EH/s secured via existing Bitmain S21 Pro miner purchase options Purchase price of $18.9/TH9 (option fee of 10% of purchase price) Options expiring in March 2025 and May 2025 AI Cloud Services 816 NVIDIA H100 GPUs, servicing multiple customers AI Cloud Services revenue continues to scale Launching Childress GPU pilot in H2 2024 Poolside recently extended contract, expected to roll-off August 30, 2024: Consolidating clusters with other providers for strategic reasons Continuing to provide testimonials and customer references Strong customer demand and pipeline Corporate The Full Year FY24 Results webcast will be recorded, and the replay will be accessible shortly after the event at https://iren.com/investor/events-and-presentations Non-IFRS metric reconciliation Adjusted EBITDA Reconciliation(USD$m)1 Year ended June 30, 2024 Year ended June 30, 2023 Bitcoin mining revenue 184.1   75.5   AI Cloud Service revenue 3.1   -   Other income 1.6   -   Electricity charges (81.6)   (35.8)   Realized gain on financial asset 4.1   -   Other costs (56.5)   (38.4)   Adjusted EBITDA 54.7   1.4   Adjusted EBITDA Margin 29%   2%         Reconciliation to consolidated statement of profit or loss     Add/(deduct):