Iris Energy Overcomes Doubts with Record Revenue
Iris Energy (IREN) recently posted record revenue despite facing a 50% share slump. This drop followed skepticism from short seller Culper Research regarding the company’s Bitcoin mining profitability and AI expansion plans. In response, Iris Energy reported impressive results driven by significant advances in data center expansion and Bitcoin mining.
Expansion and Growth
The company is set to achieve a 30 EH/s hash rate by year-end. It continues to scale its AI cloud services while committing to 100% renewable energy. Investors interested in cryptocurrency and AI might find Iris Energy a compelling option.
Iris Energy has made considerable strides in Bitcoin mining. The company’s self-mining capacity surged from 5.6 EH/s to 15 EH/s. It remains on track to reach 20 EH/s by the end of next month and 30 EH/s by the year’s end.
Progress in AI and Energy
The firm is also scaling its AI Cloud Services, now powered by 816 NVIDIA H100 GPUs. Iris Energy increased its grid-connected power from 760 MW to 2,310 MW over the past year. The company adopted spot pricing in August 2024 to optimize power costs and avoid previous hedging costs and risks.
Financial Performance
Iris Energy reported a fiscal year 2024 revenue of $188.8 million. This figure represents a 150% year-over-year increase. Bitcoin mining revenue reached $184.1 million due to a surge in operating hashrate and high Bitcoin prices. AI Cloud Services added $3.1 million in revenue, catering to multiple customers.
However, the net electricity cost rose to $76.0 million from $35.8 million in FY 2023, due to additional capacity. The net loss after income tax decreased significantly to $29.0 million from $171.9 million in 2023. The loss per share improved to $0.29, compared to $3.14 in FY 2023.
The company ended the quarter with $404.6 million in cash and cash equivalents, with no outstanding debts.
Iris Energy Stock Price Target and Market Sentiment
IREN stock has shown volatility, with a beta of 2.16. It has climbed over 73% in the past year but trades near the middle of its 52-week range of $2.79 – $15.75. The stock also exhibits negative price momentum, trading below its 20-day ($8.36) and 50-day ($9.05) moving averages.
Analysts remain optimistic about IREN stock. Macquarie analyst Paul Golding recently raised the price target from $12 to $13.50, maintaining an Outperform rating. He noted Iris Energy’s addition of about 4.5 EH/s of capacity and ongoing AI-driven business growth.
Overall, eight analysts have rated Iris Energy a Strong Buy. The average price target for IREN stock stands at $16.25, suggesting a potential upside of 105.44% from current levels.
Iris Energy has demonstrated strong revenue growth, fueled by its advancements in data center operations and Bitcoin mining. The company is on track to meet its ambitious 30 EH/s hash rate goal by year-end. With its progress in Bitcoin mining, increased grid-connected power, and expanding AI cloud services, Iris Energy offers an attractive investment opportunity in the dynamic cryptocurrency and AI sectors.
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