IREN Reports First Quarter FY25 Financial Results
IREN (NASDAQ: IREN), a leading data center business specializing in Bitcoin mining and AI cloud services, announced its financial results for the first quarter ended September 30, 2024.
Financial Metrics
| Metric | Q1 FY25 | Q4 FY24 | Consensus Estimates |
|---|---|---|---|
| Total Revenue | $52.8 million | $56.8 million | $54.75 million |
| Adjusted EBITDA | $2.6 million | $12.2 million | N/A |
The company reported total revenue of $52.8 million, down from $56.8 million in the previous quarter. The missed consensus estimate of $54.75 million can be attributed to increased network difficulty and lower Bitcoin prices, although partially offset by enhanced operating hashrate. Adjusted EBITDA decreased to $2.6 million from $12.2 million in the fourth quarter of FY24. IREN did not provide detailed EPS figures for the quarter.
Segment Revenue Breakdown
| Segment | Q1 FY25 Revenue | Q4 FY24 Revenue | Change |
|---|---|---|---|
| Bitcoin Mining | $49.6 million | $54.3 million | -8.7% |
| AI Cloud Services | $3.2 million | $2.5 million | +28% |
Bitcoin mining revenue decreased by 8.7% quarter-over-quarter due to higher network difficulty and lower Bitcoin prices. Meanwhile, AI Cloud Services experienced substantial growth of 28%, fueled by additional GPU commissions in April 2024.
Key Developments and Operational Highlights
- Bitcoin Mining Expansion :
- Current 21 EH/s installed; on track to reach 31 EH/s next month.
- Accelerated growth target of 50 EH/s set for H1 2025.
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Single-site expansion at Childress.
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AI Cloud Services :
- 1,896 NVIDIA H100 & H200 GPUs active.
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Investment in liquid cooling infrastructure for support of NVIDIA Blackwell GPUs.
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Power & Land :
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Progress on the 1.4GW Sweetwater site, with substation energization anticipated by April 2026.
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Corporate Developments :
- Focus on alternative funding.
- Transition to U.S. domestic issuer status slated for 2025.
Officer Comments
Daniel Roberts, Co-Founder and Co-CEO, highlighted the company's commitment to expanding its Bitcoin mining capacity and its focus on operational cashflows and shareholder returns. He emphasized the strategic growth towards 50 EH/s by H1 2025 and mentioned potential investor distributions in 2025, bolstered by robust operating cash flows.
Dividends and Share Repurchase Program
No dividend or share repurchase program announcements have been made.
Forward Guidance
The company did not offer forward guidance relating to future earnings or revenue.
Stock Price Movement
Following the earnings release, IREN's stock saw a decline of approximately 8.07%.
In summary, while IREN continues to emphasize strategic growth in Bitcoin mining and AI cloud services, near-term financial performance has been impacted by industry-wide challenges such as increased network difficulty and Bitcoin price volatility. The management remains optimistic about future expansion and operational improvements driving potential shareholder value in 2025.
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