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SYDNEY - IREN (NASDAQ: IREN), a company specializing in AI cloud services and bitcoin mining, has released its monthly investor update for October 2024, showcasing significant advancements in its operations. The company reported a substantial increase in bitcoin mining revenue, attributing the growth to a ramp-up in operating hashrate to 21 exahashes per second (EH/s) and a rise in bitcoin prices.
In the realm of AI cloud services, IREN is commissioning an additional 1,080 NVIDIA (NASDAQ:NVDA) H200 GPUs and is preparing its data centers to accommodate liquid-cooled NVIDIA Blackwell GB200 GPUs. The company's AI cloud services revenue for October stood at $1 million, a slight decrease from August's $1.3 million but an increase from September's $0.7 million.
Bitcoin mining operations yielded 439 bitcoins in October, with the company highlighting a 12% reduction in electricity cost per bitcoin mined, primarily due to the lower unit electricity costs at its Childress data center in Texas. The average operating hashrate was 19.9 EH/s, with a hardware profit margin of 168%.
IREN's data center capacity is set to expand, with a 1.4 gigawatt (GW) site in Texas targeting energization by April 2026. Additionally, ongoing discussions with multiple hyperscalers are exploring various monetization structures for the company's data center assets.
The company's data center at Childress is currently operating at 200 megawatts (MW) and is under construction to expand to 360 MW by the end of 2024. This expansion is expected to support an increase in hashrate to 31 EH/s, contributing to a projected illustrative annualized hardware profit of $344 million.
Furthermore, IREN is actively engaged with the investment community, with participation in upcoming conferences, including the Cantor Crypto, Digital Assets & AI Infrastructure Conference in Miami and the Roth Technology Conference in New York.
The information provided in this article is based on a press release statement from IREN. It should be noted that forward-looking statements within the press release are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These statements are not guarantees of future performance and should be considered with caution.
In other recent news, Iris Energy has reported significant advancements in its operations. The company disclosed a 42% rise in Bitcoin mining revenue to $21.4 million in September, a result of capacity expansion and a 21% reduction in electricity costs per Bitcoin. Iris Energy also achieved an operational milestone, reaching an installed capacity of 20 exahashes per second (EH/s) ahead of schedule. In terms of AI cloud services, Iris Energy secured seven new deals and plans to commission an additional 1,080 NVIDIA H200 GPUs by the end of 2024, potentially doubling the company's current AI capacity. This expansion could contribute around 10% to the company's earnings by year-end.
Iris Energy has also expedited the energization date of its 1.4GW substation at the West Texas data center project to April 2026 and expanded its land holdings by acquiring 800 acres. This development supports both Bitcoin mining operations and high-performance computing (HPC) and AI services. Analyst firms Roth/MKM, B.Riley and Macquarie have all confirmed their positive ratings on Iris Energy. These are recent developments that highlight Iris Energy's strategic growth and commitment to utilizing 100% renewable energy for its operations.
InvestingPro Insights
IREN's recent operational updates align with several key metrics and insights from InvestingPro. The company's impressive revenue growth of 149.98% over the last twelve months reflects its successful expansion in both bitcoin mining and AI cloud services. This growth trajectory is further supported by an InvestingPro Tip indicating that analysts anticipate continued sales growth in the current year.
The company's gross profit margin of 88.24% is particularly noteworthy, especially given IREN's focus on energy-intensive operations like bitcoin mining. This aligns with another InvestingPro Tip highlighting IREN's impressive gross profit margins. However, investors should be aware that despite strong top-line growth, IREN is not yet profitable over the last twelve months, although analysts predict profitability this year.
IREN's stock performance has been volatile but generally positive, with a significant 167.66% return over the past year. This volatility is reflected in an InvestingPro Tip noting that stock price movements are quite volatile. The company's market capitalization stands at $1.69 billion, indicating substantial investor interest in its growth potential.
For those 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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