Iris Energy (IREN) Issues Monthly Investor Update for December 2023

Iris Energy Limited (NASDAQ: IREN) today published a monthly investor update for December 2023, containing its results from operations as well as business updates.

Key Highlights1

• 4,123 BTC mined in calendar year 2023

• Expansion to 10 EH/s fully funded
  • Acquisition of 1.6 EH/s of new-generation Bitmain T21 miners for $14/TH4 during the month, increasing self-mining capacity to 10 EH/s
  • Expansion from 5.6 EH/s to 10 EH/s:
    • Delivered progressively from January 2024
    • Improves overall fleet efficiency from 29.5 J/TH to 24.8 J/TH
    • Fully funded following targeted equity raising program
• High-performance compute update
  • Commissioning of NVIDIA H100 GPUs targeting generative AI underway
• Childress construction (Phase 1, first 100MW)
  • DC 2: construction substantially complete and majority of data center energized ready for miners
  • DC 3: building and miner racking installation complete; electrical installation ongoing
  • DC 4: building structure complete and cladding ongoing
  • DC 5: concrete foundations complete; building structure delivered to site

Corporate update

Mining capacity increased to 10 EH/s

On December 15, 2023, the Company announced the acquisition of 1.6 EH/s of new-generation Bitmain T21 miners for $14/TH4 ($22.3 million), payable in progressive instalments.

80MW expansion at Childress to be delivered progressively from January 2024, supporting the increase in operating hashrate from 5.6 EH/s to 10 EH/s:

• Current: 5.6 EH/s operating
• Shipping Q1 2024: 2.7 EH/s Bitmain S21/T21 miners
• Shipping Q2 2024: 1.6 EH/s Bitmain T21 miners

The newly acquired Bitmain S21 and T21 miners, once installed, will improve overall fleet efficiency from 29.5 J/TH to 24.8 J/TH.

Early works and procurement for the next 100MW of data centers at Childress are ongoing, with 500MW of additional power immediately available on site.

The update can be accessed via the following link.

Expansion to 10 EH/s fully funded

On December 21, 2023, the Company provided a business update.

The key highlights are:

• 10 EH/s expansion fully funded following targeted equity raising program
• Commissioning of NVIDIA H100 GPUs targeting generative AI underway
• Planning underway for additional growth (H2 2024)

The update can be accessed via the following link.

Canal Flats update (0.8 EH/s, 30MW capacity) – BC, CanadaCanal Flats has been powered by 100% renewable energy since inception5.The project achieved average monthly operating hashrate of 829 PH/s in December compared to 840 PH/s last month.

Mackenzie update (2.6 EH/s, 80MW capacity) – BC, CanadaMackenzie has been powered by 100% renewable energy since inception5.The project achieved average monthly operating hashrate of 2,574 PH/s in December compared to 2,583 PH/s last month.

Prince George update (1.6 EH/s, 50MW capacity) – BC, CanadaPrince George has been powered by 100% renewable energy since inception5.The project achieved average monthly operating hashrate of 1,568 PH/s in December compared to 1,555 PH/s last month.

Childress update (0.6 EH/s, 20MW operating / 80MW under construction) – Texas, USAChildress has been powered by 100% renewable energy since inception via the purchase of RECs.The project achieved average monthly operating hashrate of 604 PH/s in December compared to 573 PH/s last month.Construction for the remainder of Phase 1 (100MW) is ahead of schedule and on track to be progressively delivered from January 2024:

• DC 1: operating since April 2023
• DC 2: construction substantially complete and data center commissioning ongoing (majority energized and ready for miners)
• DC 3: building and miner racking installation complete; electrical installation ongoing
• DC 4: building structure complete and cladding ongoing
• DC 5: concrete foundations complete; building structure delivered to site

The Company’s ownership of key infrastructure and significant land holdings provides a rapid and efficient growth pathway, with 600MW of total power capacity immediately available at the site.

Community engagement

Iris Energy was honoured to support the Mackenzie local community by collecting non-perishable items throughout the holiday season to donate to the local food bank.

In Childress, Community Grant recipients were able to make a positive impact to the local community:

• Childress County Christmas Sharing purchased gifts for over 200 families in Childress County, including presents for children and essential items for the elderly. The Childress team also volunteered their time to wrap the Christmas gifts.
• Christmas in the Park held their annual charity fundraiser dinner, and the Childress team was honoured to participate.
• The Champions Club celebrated their first event supporting over 250 students.

Future development sites

In addition to the Company’s 2,160MW of announced power capacity, development works also continued across additional sites in Canada, the USA and Asia-Pacific, which have the potential to support up to an additional >1,000MW of aggregate capacity.

Operating and financial results

Daily average operating hashrate chart is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/82f2fbd2-3cb6-4bde-ad1c-956644da70c0

Technical commentary

The Company’s average operating hashrate was 5,576 PH/s in December (compared to 5,551 PH/s in November). The Company recorded higher revenue ($17.2m vs. $13.7m in November) which was largely driven by an increase in the Bitcoin price and higher network transaction fees10, partially offset by an increase in network difficulty.

The electricity costs per Bitcoin mined were lower due to an increase in the number of Bitcoin mined during December versus November. Note the Company retains flexibility to reduce future power costs through adjusting miner output in response to changes in mining economics.

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