Iris Energy Limited, a renowned Bitcoin mining company recognized for its dedication to sustainable energy, has made a significant stride in expanding its self-mining capacity. The company, known for its commitment to ethical mining practices, recently unveiled plans to increase its mining capacity by an impressive 25%, elevating it from 5.6 EH/s to 7.0 EH/s.
This expansion has been made possible through a strategic collaboration between Iris Energy and Bitmain Technologies Delaware Limited, a leading player in the cryptocurrency mining hardware sector. Together, they are acquiring approximately 7,000 of Bitmain’s cutting-edge S21 miners, which will contribute 1.4 EH/s to Iris Energy’s capacity. These mining rigs are scheduled to be dispatched in early 2024.
One standout feature of Bitmain’s S21 miners is their industry-leading efficiency, boasting an impressive 17.5 J/TH. This heightened efficiency not only bolsters Iris Energy’s mining fleet’s resilience post-halving but also enhances capital efficiency within their data centres. The improved revenue per data centre is anticipated to have a favourable impact on the company’s financial performance. Furthermore, this capacity expansion is poised to elevate Bitcoin’s overall hashrate, surpassing earlier estimates.
Strategic Financing for Capacity Expansion
The purchase price for these miners is pegged at $19.6 million, equivalent to $14 per TH. Out of this total, $16.7 million will be settled prior to shipment, with the remaining 15% (approximately $2.9 million or $2.1/TH) to be deferred and paid one year after shipment. Iris Energy is well-positioned to finance this expansion, drawing from its existing capital sources, which include cash reserves of around $64 million and zero outstanding debt. These will be supplemented by operating cash flow and other applicable funding programs.
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Emphasizing their commitment to sustainable practices, Iris Energy intends to install the newly acquired miners at their site in Childress, Texas. Concurrently, the company’s 80MW expansion initiative in Childress is on track, with data centres expected to be progressively delivered starting from early 2024. This substantial capacity expansion now places Iris Energy on a trajectory toward near-term growth, with the potential for an operating capacity increase of up to 9.4 EH/s, surpassing the previously projected 9.1 EH/s. The company remains vigilant in monitoring the market for additional hardware acquisition opportunities as it continues to advance toward its ambitious single-site expansion goal, targeting a remarkable 30 EH/s.