Iris Energy – Sustainable Bitcoin Mining

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10 May 2021

Iris Energy CEO commencement and operational update

Iris Energy’s inaugural Chief Executive Officer (CEO), Jason Conroy, commenced in the role today.

Jason said he is delighted to join Iris Energy at a time when the company is on track to be one of the world’s largest1 Bitcoin miners:

“In our pursuit of global leadership in Bitcoin mining, we are preparing Iris Energy to become a public company and also looking at a number of private market funding options.

“The proceeds from our successful AUD$110 million private placement of convertible notes announced last week will be applied toward our recently secured new computer equipment orders.

“We continue to respond to incredible interest from domestic and offshore institutional investors who are looking for a blue-chip, sustainable investment exposure to Bitcoin. Our commitment to owning and operating real assets powered by renewables meets their criteria.

“Our goal is to have over 500MW of deployed computing capacity within the next three years, and we believe we are firmly on track to deliver on this vast growth pipeline with further funding rounds.

“Currently we devote our assets to mine Bitcoin, which is proving to be incredibly profitable. Opportunities exist for us to leverage our real asset platform and raw computing power across the globe for multiple applications in the future.

“In joining Iris Energy, I also look forward to leading the team and attracting and developing talent as we rapidly scale our operations over the next 12 months.”

 

Operational update

Iris Energy’s current 9MW data centre in British Columbia, Canada is operating cash flow positive.

Its expansion to 30MW (equivalent to 0.7EH/s) of computing capacity is on track to be completed in Q4 this year, which would be generating up to US$90 million of annual gross profit2 to Iris Energy in the current market.

Iris Energy has signed binding documentation to acquire greenfield development sites in Canada along with new computer equipment orders which, with further funding rounds, are expected to add an additional 150MW (equivalent to a further 3.8EH/s) of total computing capacity in 2022.

 

Iris Energy data centre facility being constructed in British Columbia, Canada.

 

Video: Pre-commissioning testing of the facility, awaiting arrival of new hardware direct from manufacturer.

 

Jason Conroy biography

Jason Conroy is Iris Energy’s inaugural CEO. Jason was CFO of TransGrid, the major electricity transmission network in NSW and the ACT. Prior to TransGrid, he was CEO of an ASX-listed venture capital company after serving as CFO of the ASX-listed energy utility operator DUET Group for 9 years. DUET was a member of the ASX100 and owned and operated 5 energy utilities. At DUET, Jason co-led a significant transformation through the global financial crisis via mergers and acquisitions, recapitalisations and restructuring. This resulted in DUET’s $13.4 billion takeover and privatisation by Cheung Kong Infrastructure in May 2017. Jason has worked for a number of blue-chip companies, including Macquarie Group Limited. He is also an experienced nonexecutive director. Jason’s previous board roles were with an ASX-listed mining company, a children’s charity and all of DUET’s operating subsidiaries (spanning electricity distribution, gas transmission and distribution, remote region power generation and renewable generation).

 

View Media Release here

1 Compared to current Bitcoin mining public companies’ announced contracted computing hardware (by total Hashrate).

2 Gross profit is revenue less electricity costs. Assumes and applies the following inputs in the Hashrate Index Mining Calculator (https://hashrateindex.com/tools/calculator): 700,000 TH/s (hashrate), 26,200 kW (power consumption) and US$0.049/kWh (opex). Also assumes Bitcoin price of ~US$59,000, network hashrate of ~147EH/s (implied by network difficulty), transaction fees of ~0.5 Bitcoin per block (as at 9 May 2021) and 100% uptime for mining hardware. The gross profit estimate is for illustrative purposes only and should not be considered a forward-looking statement and Iris Energy takes no responsibility for accuracy of third party information (including websites).

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