Iris Energy Secures Bitmain Deal, Targets 20 EH/s Capacity in 2024

TL;DR

**Iris Energy just locked in a deal with Bitmain to potentially double its mining power to 20 EH/s this year!**

AI Summary

Iris Energy Ltd announced on January 16, 2024, a strategic agreement with Bitmain Technologies Delaware Limited to significantly expand its self-mining capacity up to 20 EH/s in 2024. This involves securing 10 EH/s of new Bitmain T21 miners at a fixed price of $14/TH, through an immediate purchase of 1 EH/s and options for an additional 9.1 EH/s. This expansion is crucial for investors as it signals Iris Energy's aggressive growth strategy in the competitive crypto mining sector, potentially boosting future revenue and market share if executed successfully.

Why It Matters

This deal positions Iris Energy for substantial growth in Bitcoin mining, which could lead to higher revenue and profitability, directly impacting shareholder value.

Risk Assessment

Risk Level: medium — While the expansion offers significant upside, the exercise of options depends on future market conditions and funding, introducing execution risk.

Analyst Insight

A smart investor would monitor Iris Energy's progress in exercising these options and securing funding, as successful execution could significantly boost its competitive position and stock performance.

Key Numbers

• 20 EH/s — Target self-mining capacity (Represents the maximum potential hash rate Iris Energy aims to achieve by the end of 2024.)
• 10 EH/s — Secured new Bitmain T21 miners (This is the total hash rate secured through immediate purchase and options, forming the core of the expansion.)
• $14/TH — Fixed price per terahash (This is the cost efficiency for acquiring the new Bitmain T21 miners, impacting the overall investment.)
• 9.1 EH/s — Additional miner purchase options (This represents the significant portion of the expansion that is contingent on future decisions and market conditions.)
• 10% — Upfront option downpayment (This indicates the initial capital commitment required for the miner purchase options.)

Key Players & Entities

• Iris Energy Limited (company) — registrant and crypto mining company
• Bitmain Technologies Delaware Limited (company) — miner supplier, referred to as Bitmain
• January 16, 2024 (date) — date of the announcement and filing
• 20 EH/s (dollar_amount) — target self-mining capacity for 2024
• 10 EH/s (dollar_amount) — secured new Bitmain T21 miners
• $14/TH (dollar_amount) — fixed price for new Bitmain T21 miners
• 1 EH/s (dollar_amount) — immediate purchase of new miners
• 9.1 EH/s (dollar_amount) — additional miner purchase options for H2 2024
• 10% (dollar_amount) — upfront option downpayment percentage

Forward-Looking Statements

• Iris Energy's self-mining capacity will exceed 15 EH/s by the end of 2024. (Iris Energy Limited) — medium confidence, target: 2024-12-31
• Bitmain Technologies Delaware Limited will receive significant revenue from Iris Energy in H2 2024 due to option exercises. (Bitmain Technologies Delaware Limited) — medium confidence, target: 2024-12-31

FAQ

Key Financial Figures

• $14 — Bitmain T21 miners at a fixed price of $14/TH, through the purchase of an addition

Filing Documents

• ef20018887_6k.htm (6-K) — 22KB
• ef20018887_ex99-1.htm (EX-99.1) — 29KB
• image00001.jpg (GRAPHIC) — 2KB
• 0001140361-24-002189.txt ( ) — 55KB

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Report on Form 6-K includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or Iris Energy's future financial or operating performance. For example, forward-looking statements include but are not limited to the Company's business strategy, expected operational and financial results, and expected increase in power capacity and hashrate. In some cases, you can identify forward-looking statements by terminology such as "anticipate," "believe," "may," "can," "should," "could," "might," "plan," "possible," "project," "strive," "budget," "forecast," "expect," "intend," "target", "will," "estimate," "predict," "potential," "continue," "scheduled" or the negatives of these terms or variations of them or similar terminology, but the absence of these words does not mean that addition, any statements or information that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking. These forward-looking statements are based on management's current expectations and beliefs. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause Iris Energy's actual results, performance or achievements to be materially different from any future results performance or achievements expressed or implied by the forward looking statements, including, but not limited to: Bitcoin price and foreign currency exchange rate fluctuations; Iris Energy's ability to obtain additional capital on co

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Iris Energy Limited Date: January 16, 2024 By: /s/ Daniel Roberts Daniel Roberts Co-Chief Executive Officer and Director

View Full Filing

View this 6-K filing on SEC EDGAR