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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Iris Energy Ltd | NASDAQ:IREN | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-0.52 | -3.80% | 13.18 | 12.60 | 13.40 | 13.79 | 12.51 | 13.47 | 20,570,001 | 05:00:12 |
Exhibit
No.
|
Description
|
|
Press Release Announcing Third Quarter FY24 Results, dated May 15, 2024
|
||
Management Presentation, dated May 15, 2024
|
||
Unaudited Interim Consolidated Financial Statements for the Three and Nine Months ended March 31, 2024
|
||
Management’s Discussion and Analysis of Financial Condition and Results of Operations for the Three and Nine Months ended March, 31, 2024
|
||
Press Release Announcing Increased Expansion Plans, dated May 15, 2024
|
||
101
|
The following materials from this Report are formatted in Inline XBRL (eXtensible Business Reporting Language): (i) Unaudited interim consolidated statements of profit or loss and other comprehensive income, (ii) Unaudited interim
consolidated statements of financial position, (iii) Unaudited interim consolidated statements of changes in equity, (iv) Unaudited interim consolidated statements of cash flows and (v) Notes to the unaudited interim consolidated
statements
|
|
104
|
Cover Page Interactive Data File – The cover page from this Report on Form 6-K is formatted in iXBRL (included as Exhibit 101)
|
Iris Energy Limited
|
||
Date: May 15, 2024
|
By:
|
/s/ Daniel Roberts
|
Daniel Roberts
|
||
Co-Chief Executive Officer and Director
|
![]() |
• |
Bitcoin mining revenue of $53.4 million, as compared to $42.0 million in the second quarter of fiscal year 2024, driven by growth in operating hashrate and higher Bitcoin prices
|
• |
Net profit after income tax of $8.6 million, as compared to a loss of $5.2 million in the second quarter of our fiscal year 2024
|
• |
AI Cloud Services revenue of $0.6 million, following the commissioning of 248 NVIDIA H100 GPUs during the quarter for our customer, Poolside AI, a leading AI company
|
• |
Mined 1,003 Bitcoin, as compared to 1,144 Bitcoin in the second quarter of our fiscal year 2024. Lower Bitcoin production was primarily driven by higher global hashrate rate during the period
|
• |
Net electricity costs of $19.4 million, as compared to $16.1 million in the second quarter of our fiscal year 2024, primarily driven by an increase in operating hashrate in the quarter1
|
• |
Other costs of $12.9 million, as compared to $12.0 million in the second quarter of fiscal year 20242
|
• |
Adjusted EBITDA of $21.8 million, as compared to $13.9 million in the second quarter of our fiscal year 20243
|
• |
Year to date operating cash inflow of $47.9 million, as compared to an outflow of $1.0 million in the nine-months ended March 31, 2023
|
• |
Cash and cash equivalents of $259.7 million as of March 31, 2024 and no debt facilities4
|
![]() |
• |
Operating capacity currently 10 EH/s (May 2024) vs. 5.6 EH/s (December 2023)
|
• |
2024 expansion plans increased to 30 EH/s
|
o |
Secured latest-generation Bitmain S21 Pro miners with nameplate efficiency of 15 J/TH
|
o |
Upon completion, nameplate fleet efficiency of 16 J/TH and indicative electricity cost per Bitcoin mined of $17k5
|
o |
Funding through existing cash and other sources6
|
• |
Additional Bitmain S21 Pro miner purchase options (10 EH/s) supporting expansion pathway to 40 EH/s in 1H 2025.
|
• |
816 NVIDIA H100 GPUs
|
o |
Upsized (doubled to 504 GPUs) and extended our AI Cloud Services agreement with Poolside AI
|
o |
Testing on-demand market for our AI Cloud Services
|
• |
510MW of planned data center capacity by the end of 2024
|
o |
Increase from previous planned data center capacity of 460MW, enabled partly through a new substation design, as well as ongoing improvement and optimization of the Company’s construction and procurement process.
|
• |
2,160MW of secured power capacity
|
• |
$321.5 million cash and cash equivalents as of April 30, 20244
|
• |
The Third Quarter FY24 Results webcast will be recorded, and the replay will be accessible shortly after the event at https://iren.com/investor/events-and-presentations
|
![]() |
Adjusted EBITDA Reconciliation
(USD$m) 1
|
3 months ended
Mar 31, 2024
|
3 months ended
Dec 31, 2023
|
Bitcoin mining revenue
|
53.4
|
42.0
|
AI Cloud Services Revenue
|
0.6
|
-
|
Other income
|
0.4
|
0.5
|
Electricity charges
|
(19.8)
|
(16.7)
|
Realized gain/(loss) on financial asset
|
0.1
|
0.1
|
Other costs
|
(12.9)
|
(12.0)
|
Adjusted EBITDA
|
21.8
|
13.9
|
Adjusted EBITDA Margin
|
40%
|
33%
|
Reconciliation to consolidated statement of profit or loss
|
||
Add/(deduct):
|
||
Reversal of impairment of assets
|
-
|
0.1
|
Share-based payments expense - $75 exercise price options
|
(2.9)
|
(3.0)
|
Share-based payments expense – other
|
(2.9)
|
(2.9)
|
Foreign exchange gain/(loss)
|
4.7
|
(4.7)
|
Other expense items2
|
(0.2)
|
(2.5)
|
Unrealized gain/(loss) on financial asset3
|
(1.1)
|
(0.3)
|
EBITDA
|
19.4
|
0.6
|
Other finance expense
|
(0.1)
|
0.0
|
Interest income
|
1.5
|
0.7
|
Depreciation
|
(8.7)
|
(7.6)
|
Profit/(loss) before income tax for the period
|
12.1
|
(6.3)
|
Income tax (expense)/benefit
|
(3.5)
|
1.1
|
Profit/(loss) after income tax for the period
|
8.6
|
(5.2)
|
1) |
For further detail, see our unaudited interim financial statements for the nine months ended March 31, 2024, included in our Form 6-K filed with the SEC on May 15, 2024.
|
2) |
Other expense items include one-off professional fees including legal fees.
|
3) |
Unrealized loss on financial asset represents the change in the fair value of the financial asset recorded in relation to electricity purchased for future usage periods.
|
Reconciliation of Electricity charges to Net electricity costs
(USD$m)
|
3 months ended
Mar 31, 2024
|
3 months ended
Dec 31, 2023
|
Electricity charges
|
(19.8)
|
(16.7)
|
Add/(deduct) the following:
|
||
Realized gain/(loss) on financial asset
|
0.1
|
0.1
|
ERS revenue (included in Other income)
|
0.4
|
0.5
|
ERS fees (included in Other operating expenses)
|
(0.0)
|
(0.0)
|
Net electricity costs
|
(19.4)
|
(16.1)
|
![]() |
![]() |
![]() |
• |
Bitcoin Mining: providing security to the Bitcoin network, expanding to 30 EH/s in 2024. Operations since 2019.
|
• |
AI Cloud Services: providing cloud compute to AI customers, 816 NVIDIA H100 GPUs. Operations since 2024.
|
• |
Next-Generation Data Centers: 260MW of operating data centers, expanding to 510MW in 2024. Specifically designed and purpose-built infrastructure for high-performance and power-dense computing applications.
|
• |
Technology: technology stack for performance optimization of AI Cloud Services, Bitcoin Mining and energy trading operations.
|
• |
Development Portfolio: 2,160MW of secured power capacity across North America, >1,000 acre property portfolio and additional development pipeline.
|
• |
100% Renewable Energy (from clean or renewable energy sources or through the purchase of RECs): targets sites with low-cost & underutilized renewable energy, and supports electrical grids and local
communities.
|
Media
Jon Snowball
Domestique
+61 477 946 068
Danielle Ghigliera
Aircover Communications
+1 510 333 2707
|
Investors
Lincoln Tan
IREN
+61 407 423 395
lincoln.tan@iren.com
|
![]() |
PROCEED WITH PURPOSE.
|
6
|
![]() |
|
![]() |
Contents
|
|
31 March 2024
|
Unaudited interim consolidated statements of profit or loss and other comprehensive income
|
2
|
Unaudited interim consolidated statements of financial position
|
3
|
Unaudited interim consolidated statements of changes in equity
|
4
|
Unaudited interim consolidated statements of cash flows
|
5
|
Notes to the unaudited interim consolidated financial statements
|
6
|
Iris Energy Limited
|
![]() |
Unaudited interim consolidated statements of profit or loss and other comprehensive income
|
|
For the period ended 31 March 2024
|
Note
|
Three months
ended
31 Mar 2024
|
Three months
ended
31 Mar 2023
|
Nine months
ended
31 Mar 2024
|
Nine months
ended
31 Mar 2023
|
||||||||||||||||
$'000
|
$'000
|
$'000
|
$'000
|
|||||||||||||||||
Bitcoin mining revenue
|
|
|
|
|
||||||||||||||||
AI Cloud Service revenue |
||||||||||||||||||||
Other income
|
3 |
|
|
|||||||||||||||||
Gain/(loss) on disposal of subsidiaries |
||||||||||||||||||||
Revenue |
||||||||||||||||||||
Expenses
|
||||||||||||||||||||
Depreciation
|
10 |
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
|||||||||||
Electricity charges
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||||||
Realized gain/(loss) on financial asset
|
7 | |||||||||||||||||||
Employee benefits expense
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||||||
Share-based payments expense
|
17
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
|||||||||||
Impairment of assets
|
|
|
|
(
|
)
|
|||||||||||||||
Reversal of impairment of assets |
||||||||||||||||||||
Professional fees
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||||||
Site expenses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Other operating expenses
|
4
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
|||||||||||
Gain/(loss) on sale of assets |
( |
) | ( |
) | ||||||||||||||||
Unrealized gain/(loss) on financial asset |
7 | ( |
) | ( |
) | |||||||||||||||
Operating profit/(loss)
|
|
(
|
)
|
(
|
)
|
(
|
)
|
|||||||||||||
Finance expense
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||||||
Interest income
|
|
|
|
|
||||||||||||||||
Foreign exchange gain/(loss)
|
|
|
|
(
|
)
|
|||||||||||||||
Profit/(loss) before income tax expense
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||
Income tax (expense)/benefit
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||||||
Profit/(loss) after income tax expense for the period
|
|
(
|
)
|
(
|
)
|
(
|
)
|
|||||||||||||
Other comprehensive income/(loss)
|
||||||||||||||||||||
Items that may be reclassified subsequently to profit or loss
|
||||||||||||||||||||
Foreign currency translation
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||||||
Other comprehensive income/(loss) for the period, net of tax
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||||||
Total comprehensive income/(loss) for the period
|
|
(
|
)
|
(
|
)
|
(
|
)
|
|||||||||||||
Cents
|
Cents
|
Cents
|
Cents
|
|||||||||||||||||
Basic earnings per share
|
14
|
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||||||
Diluted earnings per share
|
14
|
|
(
|
)
|
(
|
)
|
(
|
)
|
Iris Energy Limited
|
![]() |
Unaudited interim consolidated statements of financial position
|
|
As at 31 March 2024
|
Note
|
31 Mar 2024
|
30 Jun 2023
|
||||||||||
$'000
|
$'000
|
|||||||||||
Assets
|
||||||||||||
Current assets
|
||||||||||||
Cash and cash equivalents
|
5
|
|
|
|||||||||
Other receivables
|
6
|
|
|
|||||||||
Financial assets at fair value through profit or loss
|
7 | |||||||||||
Prepayments and other assets
|
9 |
|
|
|||||||||
Total current assets
|
|
|
||||||||||
Non-current assets
|
||||||||||||
Property, plant and equipment
|
10
|
|
|
|||||||||
Right-of-use assets
|
|
|
|
|||||||||
Deferred tax assets
|
|
|
||||||||||
Computer hardware prepayments
|
8
|
|
|
|||||||||
Other assets
|
|
|
||||||||||
Prepayments and other assets
|
9 | |||||||||||
Total non-current assets
|
|
|
||||||||||
Total assets
|
|
|
||||||||||
Liabilities
|
||||||||||||
Current liabilities
|
||||||||||||
Trade and other payables
|
|
|
||||||||||
Lease liabilities
|
11 | |||||||||||
Income tax
|
|
|
||||||||||
Employee benefits
|
|
|
||||||||||
Provisions
|
12
|
|
|
|||||||||
Deferred Revenue |
||||||||||||
Total current liabilities
|
|
|
||||||||||
Non-current liabilities
|
||||||||||||
Lease liabilities
|
11 | |||||||||||
Deferred tax liabilities
|
|
|
||||||||||
Employee benefits
|
||||||||||||
Total non-current liabilities
|
|
|
||||||||||
Total liabilities
|
|
|
||||||||||
Net assets |
||||||||||||
Equity
|
||||||||||||
Issued capital
|
13 |
|
|
|||||||||
Reserves
|
|
(
|
)
|
|||||||||
Accumulated losses
|
(
|
)
|
(
|
)
|
||||||||
Total equity
|
|
|
Iris Energy Limited
|
![]() |
Unaudited interim consolidated statements of changes in equity
|
|
For the period ended 31 March 2024
|
Issued
|
Accumulated
|
|||||||||||||||
capital
|
Reserves
|
losses
|
Total equity
|
|||||||||||||
$'000
|
$'000
|
$'000
|
$'000
|
|||||||||||||
Balance at 1 January 2023
|
|
(
|
)
|
(
|
)
|
|
||||||||||
Profit/(loss) after income tax expense for the period
|
|
|
(
|
)
|
(
|
)
|
||||||||||
Other comprehensive gain/(loss) for the period, net of tax
|
|
(
|
)
|
|
(
|
)
|
||||||||||
Total comprehensive loss for the period
|
|
(
|
)
|
(
|
)
|
(
|
)
|
|||||||||
Transactions with owners in their capacity as owners:
|
||||||||||||||||
Capital raise costs |
( |
) | ( |
) | ||||||||||||
Share issuances - paid |
||||||||||||||||
Share-based payments
|
|
|
|
|
||||||||||||
Balance at 31 March 2023
|
|
(
|
)
|
(
|
)
|
|
Issued
|
Accumulated | |||||||||||||||
capital
|
Reserves
|
losses
|
Total equity | |||||||||||||
$'000
|
$'000
|
$'000
|
$'000
|
|||||||||||||
Balance at 1 July 2022
|
|
(
|
)
|
(
|
)
|
|
||||||||||
Profit/(loss) after income tax expense for the period
|
|
|
(
|
)
|
(
|
)
|
||||||||||
Other comprehensive gain/(loss) for the period, net of tax
|
|
(
|
)
|
|
(
|
)
|
||||||||||
Total comprehensive loss for the period
|
|
(
|
)
|
(
|
)
|
(
|
)
|
|||||||||
Transactions with owners in their capacity as owners:
|
||||||||||||||||
Capital raise costs | ( |
) | ( |
) | ||||||||||||
Share issuances - paid |
||||||||||||||||
Share-based payments
|
|
|
|
|
||||||||||||
Balance at 31 March 2023
|
|
(
|
)
|
(
|
)
|
|
Issued
|
Accumulated | |||||||||||||||
capital
|
Reserves
|
losses
|
Total equity | |||||||||||||
$'000
|
$'000
|
$'000
|
$'000
|
|||||||||||||
Balance at 1 January 2024
|
|
|
(
|
)
|
|
|||||||||||
Profit/(loss) after income tax expense for the period
|
|
|
|
|
||||||||||||
Other comprehensive gain/(loss) for the period, net of tax
|
|
(
|
)
|
|
(
|
)
|
||||||||||
Total comprehensive loss for the period
|
|
(
|
)
|
|
|
|||||||||||
Transactions with owners in their capacity as owners:
|
||||||||||||||||
Capital raise costs | ( |
) | ( |
) | ||||||||||||
Share issuances - paid |
||||||||||||||||
Share-based payments
|
|
|
|
|
||||||||||||
Balance at 31 March 2024
|
|
|
(
|
)
|
|
Issued
|
Accumulated | |||||||||||||||
capital
|
Reserves
|
losses
|
Total equity | |||||||||||||
$'000
|
$'000
|
$'000
|
$'000
|
|||||||||||||
Balance at 1 July 2023
|
|
(
|
)
|
(
|
)
|
|
||||||||||
Profit/(loss) after income tax expense for the period
|
|
|
(
|
)
|
(
|
)
|
||||||||||
Other comprehensive gain/(loss) for the period, net of tax
|
|
(
|
)
|
|
(
|
)
|
||||||||||
Total comprehensive loss for the period
|
|
(
|
)
|
(
|
)
|
(
|
)
|
|||||||||
Transactions with owners in their capacity as owners:
|
||||||||||||||||
Capital raise costs | ( |
) | ( |
) | ||||||||||||
Share issuances - paid |
||||||||||||||||
Share-based payments
|
|
|
|
|
||||||||||||
Balance at 31 March 2024
|
|
|
(
|
)
|
|
Iris Energy Limited
|
![]() |
Unaudited interim consolidated statements of cash flows | |
For the period ended 31 March 2024
|
Note |
Nine months
ended
31 Mar 2024
|
Nine months
ended
31 Mar 2023
|
||||||||||
$'000
|
$'000
|
|||||||||||
Cash flows from operating activities
|
||||||||||||
Receipts from Bitcoin mining activities
|
|
|
||||||||||
Receipts
from AI Cloud Service revenue |
||||||||||||
Receipts from ERS revenue |
||||||||||||
Payments for electricity, suppliers and employees (inclusive of GST)
|
(
|
)
|
(
|
)
|
||||||||
Interest received
|
|
|
||||||||||
Other revenue |
||||||||||||
Interest paid
|
(
|
)
|
(
|
)
|
||||||||
Net cash from/(used in) operating activities
|
|
(
|
)
|
|||||||||
Cash flows from investing activities
|
||||||||||||
Payments for property, plant and equipment net of hardware prepayments
|
10 |
(
|
)
|
(
|
)
|
|||||||
Payments for computer hardware prepayments
|
8 |
(
|
)
|
|
||||||||
Repayments/(advancement) of loan proceeds
|
|
|
||||||||||
Prepayments and deposits
|
(
|
)
|
(
|
)
|
||||||||
Proceeds from disposal of property, plant and equipment
|
||||||||||||
Deconsolidation of Non-Recourse SPVs | ( |
) | ||||||||||
Net cash from/(used in) in investing activities
|
(
|
)
|
(
|
)
|
||||||||
Cash flows from financing activities
|
||||||||||||
Capital raising costs
|
13 |
(
|
)
|
(
|
)
|
|||||||
Repayment of borrowings
|
|
(
|
)
|
|||||||||
Capital raising receipts |
||||||||||||
Payment of borrowing transaction costs
|
|
(
|
)
|
|||||||||
Repayment of lease liabilities
|
(
|
)
|
(
|
)
|
||||||||
Net cash from/(used in) financing activities
|
|
(
|
)
|
|||||||||
Net increase/(decrease) in cash and cash equivalents
|
|
(
|
)
|
|||||||||
Cash and cash equivalents at the beginning of the period
|
|
|
||||||||||
Effects of exchange rate changes on cash and cash equivalents
|
|
(
|
)
|
|||||||||
Cash and cash equivalents at the end of the period
|
|
|
Iris Energy Limited
|
![]() |
Notes to the unaudited interim consolidated financial statements
|
|
31 March 2024
|
Registered office
|
Principal place of business
|
c/o Pitcher Partners
|
Level 12, 44 Market Street
|
Level 13, 664 Collins Street
|
Sydney NSW 2000
|
Docklands VIC 3008
|
Australia
|
Australia
|
Iris Energy Limited
|
![]() |
Notes to the unaudited interim consolidated financial statements
|
|
31 March 2024
|
● |
Step 1: Identify the contract with a customer;
|
● |
Step 2: Identify the performance obligations in the contract;
|
● |
Step 3: Determine the transaction price, which is the total consideration provided by the customer;
|
● | Step 4: Allocate the transaction price among the performance obligations in the contract based on their relative fair values; and |
● |
Step 5: Recognize revenue when (or as) the Group satisfies a performance obligation.
|
●
|
AI Cloud Services revenue is
recognized as service revenue rateably over the enforceable term of individual contracts which is typically the stated term. The Company satisfies its performance obligation as these services are provided over time.
This method best represents the transfer of services.
|
●
|
Transaction price is determined as the list price of services (net of discounts) that the Company delivers to its customers, considering the term of each individual
contract, and the ability to enforce and collect the consideration.
|
●
|
Usage revenue (overage and
consumption-based services) is recorded as AI Cloud Services revenue in the month the usage is incurred/service is consumed by the customer, based on a fixed agreed upon amount per unit consumed.
|
Iris Energy Limited
|
![]() |
Notes to the unaudited interim consolidated financial statements
|
|
31 March 2024
|
● |
A base case scenario assuming recent Bitcoin economics, with reduction in block rewards following the halving event which occurred in April 2024;
|
● |
Three operational sites in British Columbia, Canada with installed nameplate capacity of 160MW; 80MW Mackenzie, 50MW Prince George and 30MW Canal
Flats;
|
● |
A fourth operational site at Childress, Texas with installed nameplate capacity of 85MW as at 6 May 2024 incrementally increasing to 350 MW by 31
December 2024;
|
● |
Securing additional financing as required to achieve the Group’s growths objectives.
|
Iris Energy Limited
|
![]() |
Notes to the unaudited interim consolidated financial statements
|
|
31 March 2024
|
Three months
ended
31 Mar 2024
|
Three months
ended
31 Mar 2023
|
Nine months
ended
31 Mar 2024
|
Nine months
ended
31 Mar 2023
|
|||||||||||||
$’000 | $’000 |
$’000
|
$’000
|
|||||||||||||
ERS Revenue |
||||||||||||||||
Net gain on disposal of other assets |
||||||||||||||||
Total other income |
|
|
Three months
ended
31 Mar 2024
|
Three months
ended
31 Mar 2023
|
Nine months
ended
31 Mar 2024
|
Nine months
ended
31 Mar 2023
|
|||||||||||||
$'000
|
$'000
|
$'000
|
$'000
|
|||||||||||||
Insurance
|
|
|
|
|
||||||||||||
Sponsorship and marketing
|
|
|
|
|
||||||||||||
Charitable donations
|
|
|
|
|
||||||||||||
Filing fees
|
|
|
|
|
||||||||||||
ERS fees |
||||||||||||||||
Site identification costs
|
|
|
|
|
||||||||||||
Non-refundable sales tax (See Note 12)
|
|
|
|
|
||||||||||||
Non-refundable provincial sales tax
|
||||||||||||||||
Other expenses
|
||||||||||||||||
Legal expenses
|
||||||||||||||||
Total other operating expenses
|
|
|
|
|
31 Mar 2024
|
30 Jun 2023
|
|||||||
$'000
|
$'000
|
|||||||
Current assets
|
||||||||
Cash at bank
|
|
|
||||||
Cash on deposit |
||||||||
Total cash and cash equivalents
|
Iris Energy Limited
|
![]() |
Notes to the unaudited interim consolidated financial statements
|
|
31 March 2024
|
31 Mar 2024
|
30 Jun 2023
|
|||||||
$'000
|
$'000
|
|||||||
Current assets
|
||||||||
Share issuance proceeds
|
|
|
||||||
Trade and other receivables
|
|
|
||||||
Provincial sales tax receivable
|
|
|
||||||
Goods and services tax receivable
|
|
|
||||||
Total other receivables |
|
|
Three months
ended
|
Three months
ended
|
Nine months
ended
|
Nine months
ended
|
|||||||||||||
31 Mar 2024
|
31 Mar 2023
|
31 Mar 2024 |
31 Mar 2023 |
|||||||||||||
$‘000 |
$'000 |
$'000 |
$'000 |
|||||||||||||
Current assets
|
||||||||||||||||
Electricity financial asset
|
|
|
||||||||||||||
Reconciliation
|
||||||||||||||||
Reconciliation of the fair values at the beginning and end of the current and previous financial period are set out below:
|
||||||||||||||||
Opening fair value
|
|
|
||||||||||||||
Additions
|
|
|
||||||||||||||
Financial asset realized |
( |
) | ( |
) | ||||||||||||
Revaluation decrements (unrealized loss)
|
(
|
)
|
|
( |
) | |||||||||||
Closing fair value
|
|
|
Iris Energy Limited
|
![]() |
Notes to the unaudited interim consolidated financial statements
|
|
31 March 2024
|
31 Mar 2024
|
30 Jun 2023
|
|||||||
$'000
|
$'000
|
|||||||
Non-current assets
|
||||||||
Mining hardware prepayments
|
|
|
||||||
High-performance computing hardware prepayments
|
|
|
||||||
Total computer hardware prepayment |
|
31 Mar 2024
|
30 Jun 2023
|
|||||||
$'000
|
$'000
|
|||||||
Current assets
|
||||||||
Security deposits
|
|
|
||||||
Prepayments
|
|
|
||||||
Total current |
|
|
||||||
Non-current assets
|
||||||||
Security deposits
|
|
|
||||||
Total prepayments and other assets
|
|
|
31 Mar 2024
|
30 Jun 2023
|
|||||||
$'000
|
$'000
|
|||||||
Non-current assets
|
||||||||
Land - at cost
|
|
|
||||||
Buildings - at cost
|
|
|
||||||
Less: Accumulated depreciation | ( |
) | ( |
) | ||||
|
|
|||||||
Plant and equipment - at cost
|
|
|
||||||
Less: Accumulated depreciation
|
(
|
)
|
(
|
)
|
||||
|
|
|||||||
Mining hardware - at cost
|
|
|
||||||
Less: Accumulated depreciation
|
(
|
)
|
(
|
)
|
||||
Less: Accumulated impairment
|
(
|
)
|
(
|
)
|
||||
|
|
|||||||
HPC Hardware |
||||||||
Less: Accumulated depreciation |
( |
) | ||||||
Development assets - at cost
|
|
|
||||||
Total property, plant and equipment
|
|
|
Land
|
Buildings
|
Plant and equipment
|
Mining
hardware
|
HPC
hardware
|
Development assets
|
Total
|
||||||||||||||||||||||
Consolidated
|
$'000
|
$'000
|
$'000
|
$'000
|
$'000 |
$'000
|
$'000
|
|||||||||||||||||||||
Balance at 1 July 2023
|
|
|
|
|
|
|
||||||||||||||||||||||
Additions
|
|
|
|
|
|
|
||||||||||||||||||||||
Disposals |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Exchange differences
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
( |
) |
|
(
|
)
|
|||||||||||||||
Reversal of impairment |
||||||||||||||||||||||||||||
Transfers in/(out)
|
|
|
|
|
(
|
)
|
|
|||||||||||||||||||||
Depreciation expense
|
|
(
|
)
|
(
|
)
|
(
|
)
|
( |
) |
|
(
|
)
|
||||||||||||||||
Balance at 31 March 2024
|
|
|
|
|
|
|
Iris Energy Limited
|
![]() |
Notes to the unaudited interim consolidated financial statements
|
|
31 March 2024
|
31 Mar 2024
|
30 Jun 2023
|
|||||||
$'000
|
$'000
|
|||||||
Current liabilities
|
||||||||
Lease liability
|
|
|
||||||
Non-current liabilities
|
||||||||
Lease liability
|
|
|
||||||
Total lease liabilities
|
|
|
31 Mar 2024
|
30 Jun 2023
|
|||||||
$‘000
|
$‘000
|
|||||||
Current liabilities
|
||||||||
Non-refundable sales tax and other provisions
|
|
|
||||||
Total Provisions |
Iris Energy Limited
|
![]() |
Notes to the unaudited interim consolidated financial statements
|
|
31 March 2024
|
Consolidated
|
||||||||||||||||
31 Mar 2024
|
30 Jun 2023
|
31 Mar 2024
|
30 Jun 2023
|
|||||||||||||
Shares
|
Shares
|
$'000
|
$'000
|
|||||||||||||
Ordinary shares - fully paid and unrestricted
|
|
|
|
|
Details
|
Date
|
Shares
|
$'000
|
||||||
Opening balance as at
|
1 July 2023
|
|
|
||||||
Shares issued under Committed Equity Facility
|
|
|
|||||||
Shares issued under ATM Facility
|
|
|
|||||||
Share based payment - third party issuance |
|||||||||
Share based payment - vested shares
|
|
|
|||||||
Capital raise costs, net of tax
|
|
(
|
)
|
||||||
|
|||||||||
Closing balance as at
|
31 March 2024
|
|
|
For the Three Months Ended 31 March 2024
|
||||||||
Three months
ended
31 Mar 2024
|
Three months
ended
31 Mar 2023
|
|||||||
$'000
|
$'000
|
|||||||
Profit/(loss) after income tax
|
|
(
|
)
|
Number
|
Number
|
|||||||
Weighted average number of ordinary shares used in calculating basic earnings per share
|
|
|
||||||
|
||||||||
Weighted average number of ordinary shares used in calculating diluted earnings per share
|
|
|
Cents
|
Cents
|
|||||||
Basic earnings per share
|
|
(
|
)
|
|||||
Diluted earnings per share
|
|
(
|
)
|
For the Nine Months Ended 31 March 2024
|
||||||||
Nine months
ended
31 Mar 2024
|
Nine months
ended
31 Mar 2023
|
|||||||
$'000
|
$'000
|
|||||||
Profit/(loss) after income tax
|
(
|
)
|
(
|
)
|
Number
|
Number
|
|||||||
Weighted average number of ordinary shares used in calculating basic earnings per share
|
|
|
||||||
|
||||||||
Weighted average number of ordinary shares used in calculating diluted earnings per share
|
|
|
Cents
|
Cents
|
|||||||
Basic earnings per share
|
(
|
)
|
(
|
)
|
||||
Diluted earnings per share
|
(
|
)
|
(
|
)
|
Iris Energy Limited
|
![]() |
Notes to the unaudited interim consolidated financial statements
|
|
31 March 2024
|
31 Mar 2024
|
30 Jun 2023
|
|||||||
$'000
|
$'000
|
|||||||
Amounts payable within 12 months of balance date
|
|
|
||||||
Amounts payable after 12 months of balance date
|
|
|
||||||
Total Commitments
|
|
|
●
|
Employee
Share Plan
|
●
|
2021
Executive Director Liquidity and Price Target Options
|
●
|
Employee
Option Plan
|
●
|
Non-Executive
Director Option Plan
|
●
|
$
|
●
|
2022
Long-Term Incentive Plan Restricted Stock Units
|
●
|
2023
Long-Term Incentive Plan Restricted Stock Units (see below for the grants made under this 2023 LTIP this period)
|
●
|
-
-
-
|
●
|
|
Iris Energy Limited
|
![]() |
Notes to the unaudited interim consolidated financial statements
|
|
31 March 2024
|
Number of
options
|
Weighted
average
exercise price
|
Number of
options
|
Weighted
average
exercise price
|
|||||||||||||
31 Mar 2024
|
31 Mar 2024
|
30 Jun 2023
|
30 Jun 2023 | |||||||||||||
Outstanding as at 1 July 2023
|
|
$
|
|
$ | ||||||||||||
Granted during the period
|
|
$
|
|
$ | ||||||||||||
Forfeited during the period
|
|
$
|
|
( |
) | $ | ||||||||||
Vested during the period
|
|
$ | $ | |||||||||||||
Outstanding as at 31 March 2024
|
|
$
|
|
$ | ||||||||||||
Exercisable as at 31 March 2024
|
|
$
|
|
$ |
Number of
RSUs
|
||||
31 Mar 2024
|
||||
Outstanding
as at 1 July 2023
|
|
|||
Granted
during the period
|
|
|||
Forfeited
during the period
|
(
|
)
|
||
Vested
during the period
|
(
|
)
|
||
|
||||
Outstanding
as at 31 March 2024
|
|
|||
|
||||
Exercisable
as at 31 March 2024
|
|
Iris Energy Limited
|
![]() |
Notes to the unaudited interim consolidated financial statements
|
|
31 March 2024
|
• |
Bitcoin price and foreign currency exchange rate fluctuations;
|
• |
our ability to obtain additional capital on commercially reasonable terms and in a timely manner to meet our capital needs and facilitate
our expansion plans;
|
• |
the terms of any future financing or any refinancing, restructuring or modification to the terms of any future financing, which could
require us to comply with onerous covenants or restrictions, and our ability to service our debt obligations, any of which could restrict our business operations and adversely impact our financial condition, cash flows and results of
operations;
|
• |
our ability to successfully execute on our growth strategies and operating plans, including our ability to continue to develop our
existing data center sites and to diversify into the market for high performance computing (“HPC”) solutions, and in particular any current or future AI Cloud (“AI Cloud”) Services we offer;
|
• |
our limited experience with respect to new markets we have entered or may seek to enter, including the market for AI Cloud Services;
|
• |
expectations with respect to the ongoing profitability, viability, operability, security, popularity and public perceptions of the Bitcoin
network;
|
• |
expectations with respect to the profitability, viability, operability, security, popularity and public perceptions of any current or
future AI Cloud Services we offer;
|
• |
our ability to secure and retain customers on commercially reasonable terms or at all, particularly as it relates to our strategy to
expand into AI Cloud Services;
|
• |
our ability to manage counterparty risk (including credit risk) associated with any current or future customers, including customers of
our AI Cloud Services and other counterparties;
|
• |
our ability to secure renewable energy, renewable energy certificates, power capacity, facilities and sites on commercially reasonable
terms or at all;
|
• |
the risk that any current or future customers, including customers of our AI Cloud Services or other counterparties, may terminate,
default on or underperform their contractual obligations;
|
• |
Bitcoin global hashrate fluctuations;
|
• |
delays associated with, or failure to obtain or complete, permitting approvals, grid connections and other development activities
customary for greenfield or brownfield infrastructure projects;
|
• |
our reliance on power and utilities providers, third party mining pools, exchanges, banks, insurance providers and our ability to maintain
relationships with such parties;
|
• |
expectations regarding availability and pricing of electricity;
|
• |
our participation and ability to successfully participate in demand response products and services and other load management programs run,
operated or offered by electricity network operators, regulators or electricity market operators;
|
• |
the availability, reliability and/or cost of electricity supply, hardware and electrical and data center infrastructure, including with
respect to any electricity outages and any laws and regulations that may restrict the electricity supply available to us;
|
• |
any variance between the actual operating performance of our miner hardware achieved compared to the nameplate performance including
hashrate;
|
• |
our ability to curtail our electricity consumption and/or monetize electricity depending on market conditions, including changes in
Bitcoin mining economics and prevailing electricity prices;
|
• |
actions undertaken by electricity network and market operators, regulators, governments or communities in the regions in which we operate;
|
• |
the availability, suitability, reliability and cost of internet connections at our facilities;
|
• |
our ability to secure additional hardware, including hardware for Bitcoin mining and any current or future AI Cloud Services we offer, on
commercially reasonable terms or at all, and any delays or reductions in the supply of such hardware or increases in the cost of procuring such hardware;
|
• |
expectations with respect to the useful life and obsolescence of hardware (including hardware for Bitcoin mining as well as hardware for
other applications, including any current or future AI Cloud Services we offer);
|
• |
delays, increases in costs or reductions in the supply of equipment used in our operations;
|
• |
our ability to operate in an evolving regulatory environment;
|
• |
our ability to successfully operate and maintain our property and infrastructure;
|
• |
reliability and performance of our infrastructure compared to expectations;
|
• |
malicious attacks on our property, infrastructure or IT systems;
|
• |
our ability to maintain in good standing the operating and other permits and licenses required for our operations and business;
|
• |
our ability to obtain, maintain, protect and enforce our intellectual property rights and confidential information;
|
• |
any intellectual property infringement and product liability claims;
|
• |
whether the secular trends we expect to drive growth in our business materialize to the degree we expect them to, or at all;
|
• |
the occurrence of any environmental, health and safety incidents at our sites, and any material costs relating to environmental, health
and safety requirements or liabilities;
|
• |
damage to our property and infrastructure and the risk that any insurance we maintain may not fully cover all potential exposures;
|
• |
ongoing proceedings relating to the default by two of the Company’s wholly-owned special purpose vehicles under limited recourse equipment
financing facilities; ongoing securities litigation relating in part to the default; and any future litigation, claims and/or regulatory investigations, and the costs, expenses, use of resources, diversion of management time and efforts,
liability and damages that may result therefrom;
|
• |
our failure to comply with any laws including the anti-corruption laws of the United States and various international jurisdictions;
|
• |
any failure of our compliance and risk management methods;
|
• |
any laws, regulations and ethical standards that may relate to our business, including those that relate to Bitcoin and the Bitcoin mining
industry and those that relate to any other services we offer (such as AI Cloud Services), including regulations related to data privacy, cybersecurity and the storage, use or processing of information;
|
• |
our ability to attract, motivate and retain senior management and qualified employees;
|
• |
increased risks to our global operations including, but not limited to, political instability, acts of terrorism, theft and vandalism,
cyberattacks and other cybersecurity incidents and unexpected regulatory and economic sanctions changes, among other things;
|
• |
climate change, severe weather conditions and natural and man-made disasters that may materially adversely affect our business, financial
condition and results of operations;
|
• |
public health crises, including an outbreak of an infectious disease (such as COVID-19) and any governmental or industry measures taken
in response;
|
• |
our ability to remain competitive in dynamic and rapidly evolving industries;
|
• |
damage to our brand and reputation;
|
• |
expectations relating to Environmental, Social and Governance issues or reporting;
|
• |
the costs of being a public company;
|
• |
and other important factors discussed under “Item 3.D. Key Information—Risk Factors” in our Annual Report, as such factors may be updated
from time to time in its other filings with the SEC, accessible on the SEC’s website at www.sec.gov and the Investor Relations section of the Company’s website at https://investors.irisenergy.co.
|
Three months
ended
March 31, 2024
|
Three months
ended
March 31, 2023
|
Nine months
ended
March 31, 2024
|
Nine months
ended
March 31, 2023
|
|||||||||||||
($ thousands)
|
($ thousands)
|
($ thousands)
|
($ thousands)
|
|||||||||||||
Profit/(loss) after income tax (expense)/ benefit
|
8,638
|
(3,053
|
)
|
(1,889
|
)
|
(164,947
|
)
|
|||||||||
Add/(deduct) the following:
|
||||||||||||||||
Finance expense
|
126
|
2,311
|
190
|
16,227
|
||||||||||||
Interest income
|
(1,500
|
)
|
(244
|
)
|
(2,878
|
)
|
(458
|
)
|
||||||||
Depreciation
|
8,692
|
5,125
|
23,870
|
24,122
|
||||||||||||
Income tax (benefit)/expense
|
3,473
|
321
|
3,228
|
2,349
|
||||||||||||
EBITDA
|
19,429
|
4,460
|
22,521
|
(122,707
|
)
|
|||||||||||
|
||||||||||||||||
Revenue
|
54,349
|
16,382
|
131,320
|
47,668
|
||||||||||||
|
||||||||||||||||
Profit/(loss) after income tax (expense) /benefit margin(1)
|
16%
|
|
(19)%
|
|
(1)%
|
|
(346)%
|
|
||||||||
|
||||||||||||||||
EBITDA margin(2)
|
36%
|
|
27%
|
|
17%
|
|
(257)%
|
|
(1) |
Profit/(loss) after income tax (expense)/benefit margin is calculated as Loss after income tax
(expense)/benefit divided by Revenue.
|
(2) |
EBITDA margin is calculated as EBITDA divided by Revenue. Prior to the three months ended March 31, 2024, the Company calculated EBITDA margin as EBITDA divided by
Bitcoin mining revenue. The Company has revised the calculation of EBITDA margin to reflect that Revenue now includes revenue generated from AI Cloud Services as a result of its strategy to diversify its revenue streams. EBITDA margin for
prior periods presented in this MD&A has been revised to reflect this revised calculation.
|
Three months
ended
March 31, 2024
|
Three months
ended
March 31, 2023
|
Nine months
ended
March 31, 2024
|
Nine months
ended
March 31, 2023
|
|||||||||||||
($ thousands)
|
($ thousands)
|
($ thousands)
|
($ thousands)
|
|||||||||||||
Profit/(loss) after income tax (expense)/benefit
|
8,638
|
(3,053
|
)
|
(1,889
|
)
|
(164,947
|
)
|
|||||||||
Add/(deduct) the following:
|
-
|
-
|
-
|
-
|
||||||||||||
Finance expense
|
126
|
2,311
|
190
|
16,227
|
||||||||||||
Interest income
|
(1,500
|
)
|
(244
|
)
|
(2,878
|
)
|
(458
|
)
|
||||||||
Depreciation
|
8,692
|
5,125
|
23,870
|
24,122
|
||||||||||||
Income tax (benefit)/expense
|
3,473
|
321
|
3,228
|
2,349
|
||||||||||||
EBITDA
|
19,429
|
4,460
|
22,521
|
(122,707
|
)
|
|||||||||||
Revenue
|
54,349
|
16,382
|
131,320
|
47,668
|
||||||||||||
Profit/(loss) after income tax (expense)/benefit margin(1)
|
16%
|
|
(19)%
|
|
(1)%
|
|
(346)%
|
|||||||||
EBITDA margin(2)
|
36%
|
|
27%
|
|
17%
|
|
(257)%
|
|
||||||||
Add/(deduct) the following:
|
||||||||||||||||
Gain on disposal of subsidiary(3)
|
-
|
(3,257
|
)
|
-
|
(3,257
|
)
|
||||||||||
Impairment of assets(4)
|
-
|
-
|
-
|
105,172
|
||||||||||||
Reversal of impairment of assets(5)
|
-
|
-
|
(108
|
)
|
-
|
|||||||||||
Share-based payment expense – $75 exercise price options
|
2,873
|
2,913
|
8,682
|
8,868
|
||||||||||||
Share-based payment expense – other
|
2,944
|
590
|
8,940
|
1,405
|
||||||||||||
Foreign exchange (gain)/loss
|
(4,714
|
)
|
(4,557
|
)
|
(2,265
|
)
|
2,619
|
|||||||||
Other expense items(6)
|
218
|
58
|
3,404
|
175
|
||||||||||||
Unrealized (gain)/loss on financial asset
|
1,091
|
-
|
1,349
|
-
|
||||||||||||
Adjusted EBITDA
|
21,841
|
207
|
42,523
|
(7,725
|
)
|
|||||||||||
Adjusted EBITDA margin(7)
|
40%
|
|
1%
|
|
32%
|
|
(16)%
|
|
(1) |
Profit/(loss) after income tax (expense)/benefit margin is calculated as Profit/(loss) after income (expense)/benefit divided by Revenue.
|
(2) |
EBITDA margin is calculated as EBITDA divided by Revenue. Prior to the three months ended March 31, 2024, the Company calculated EBITDA
margin as EBITDA divided by Bitcoin mining revenue. The Company has revised the calculation of EBITDA margin to reflect that Revenue now includes revenue generated from AI Cloud Services as a result of its strategy to diversify its revenue
streams. EBITDA margin for prior periods presented in this MD&A has been revised to reflect this revised calculation.
|
(3) |
Gain on disposal of subsidiary represents a gain recorded on the deconsolidation of two separate wholly-owned, special purpose vehicles of the Company
(collectively the “Non-Recourse SPVs”) on February 3, 2023.
|
(4) |
Impairment of assets for the nine months ended March 31, 2024 and March 31, 2023 was nil and $105.2 million, respectively. Impairment of
assets for the three months ended March 31, 2024 and March 31, 2023 was nil and $105.2 million, respectively. See “—Components of our Results of Operations—Expenses—Impairment of assets” for further information.
|
(5) |
Reversal of impairment of assets for the nine months ended March 31, 2024 and
March 31, 2023 was $0.1 million and nil, respectively. Reversal of impairment of assets for the three months ended March 31, 2024 and March 31, 2023 was nil and nil, respectively. See “—Components of our Results of Operations—Expenses—Impairment of assets” for further information.
|
(6) |
Other expense items include professional fees incurred in relation to the securities class action, and one-off additional remuneration.
|
(7) |
Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Revenue. Prior to the three months ended March 31, 2024, the Company calculated Adjusted EBITDA margin as Adjusted EBITDA divided by Bitcoin mining revenue. The Company
has revised the calculation of Adjusted EBITDA margin to reflect that Revenue now includes revenue generated from AI Cloud Services as a result of its strategy to diversify its revenue streams. Adjusted EBITDA margin for prior periods
presented in this MD&A has been revised to reflect this revised calculation.
|
Three months
ended
March 31, 2024
|
Three months
ended
March 31, 2023
|
Nine months
ended
March 31, 2024
|
Nine months
ended
March 31, 2023
|
|||||||||||||
($ thousands)
|
($ thousands)
|
($ thousands)
|
($ thousands)
|
|||||||||||||
Electricity Charges
|
(19,834
|
)
|
(5,973
|
)
|
(55,944
|
)
|
(19,910
|
)
|
||||||||
Add/(deduct) the following:
|
||||||||||||||||
Realized gain/(loss) on financial asset
|
91
|
-
|
3,210
|
-
|
||||||||||||
ERS revenue (included in Other income)
|
399
|
-
|
926
|
-
|
||||||||||||
ERS fees (included in Other operating expenses)
|
(24
|
)
|
-
|
(56
|
)
|
-
|
||||||||||
Net electricity costs
|
(19,368
|
)
|
(5,973
|
)
|
(51,864
|
)
|
(19,910
|
)
|
||||||||
Bitcoin mined
|
1,003
|
501
|
3,371
|
2,003
|
||||||||||||
Net electricity costs per Bitcoin mined
|
(19.3
|
)
|
(11.9
|
)
|
(15.4
|
)
|
(9.9
|
)
|
Three months
ended
March 31, 2024
|
Three months
ended
March 31, 2023
|
Nine months
ended
March 31, 2024
|
Nine months
ended
March 31, 2023
|
|||||||||||||
Revenue
|
($ thousands)
|
($ thousands)
|
($ thousands)
|
($ thousands)
|
||||||||||||
Bitcoin mining revenue
|
53,383
|
11,327
|
129,827
|
41,294
|
||||||||||||
AI Cloud Services revenue
|
567
|
-
|
567
|
-
|
||||||||||||
Other income
|
399
|
1,798
|
926
|
3,117
|
||||||||||||
Gain on disposal of subsidiary
|
-
|
3,257
|
-
|
3,257
|
||||||||||||
Expenses
|
-
|
-
|
-
|
|||||||||||||
Depreciation
|
(8,692
|
)
|
(5,125
|
)
|
(23,870
|
)
|
(24,122
|
)
|
||||||||
Electricity charges
|
(19,834
|
)
|
(5,973
|
)
|
(55,944
|
)
|
(19,910
|
)
|
||||||||
Realized gain/(loss) on financial asset
|
91
|
-
|
3,210
|
-
|
||||||||||||
Employee benefits expense
|
(4,333
|
)
|
(2,470
|
)
|
(12,844
|
)
|
(11,138
|
)
|
||||||||
Share-based payments expense
|
(5,817
|
)
|
(3,503
|
)
|
(17,622
|
)
|
(10,273
|
)
|
||||||||
Impairment of assets
|
-
|
-
|
-
|
(105,172
|
)
|
|||||||||||
Reversal of impairment of assets
|
-
|
-
|
108
|
-
|
||||||||||||
Professional fees
|
(2,018
|
)
|
(1,117
|
)
|
(5,938
|
)
|
(4,086
|
)
|
||||||||
Site expenses
|
(2,096
|
)
|
(1,290
|
)
|
(5,892
|
)
|
(3,329
|
)
|
||||||||
Other operating expenses
|
(4,537
|
)
|
(1,966
|
)
|
(14,809
|
)
|
(7,232
|
)
|
||||||||
Gain/(loss) on sale of assets
|
1
|
(160
|
)
|
16
|
(6,616
|
)
|
||||||||||
Unrealized gain/(loss) on financial asset
|
(1,091
|
)
|
-
|
(1,349
|
)
|
-
|
||||||||||
Profit/(loss) before interest, foreign exchange gain/(loss) and income tax
|
6,023
|
(5,222
|
)
|
(3,614
|
)
|
(144,210
|
)
|
|||||||||
Finance expense
|
(126
|
)
|
(2,311
|
)
|
(190
|
)
|
(16,227
|
)
|
||||||||
Interest income
|
1,500
|
244
|
2,878
|
458
|
||||||||||||
Foreign exchange gain/(loss)
|
4,714
|
4,557
|
2,265
|
(2,619
|
)
|
|||||||||||
Profit/(loss) before
income tax (expense)/benefit
|
12,111
|
(2,732
|
)
|
1,339
|
(162,598
|
)
|
||||||||||
Income tax (expense)/benefit
|
(3,473
|
)
|
(321
|
)
|
(3,228
|
)
|
(2,349
|
)
|
||||||||
Profit/(loss) after
income tax (expense)/benefit
|
8,638
|
(3,053
|
)
|
(1,889
|
)
|
(164,947
|
)
|
|||||||||
Other comprehensive income/(loss)
|
||||||||||||||||
Items that may be reclassified subsequently to profit or loss:
|
||||||||||||||||
Foreign currency translation
|
(7,334
|
)
|
(9,126
|
)
|
(5,331
|
)
|
(21,241
|
)
|
||||||||
Other comprehensive income/(loss), net of tax
|
(7,334
|
)
|
(9,126
|
)
|
(5,331
|
)
|
(21,241
|
)
|
||||||||
Total comprehensive income/(loss)
|
1,304
|
(12,179
|
)
|
(7,220
|
)
|
(186,188
|
)
|
● |
A base case scenario assuming recent Bitcoin economics, with reduction in block rewards following the halving event which occurred in April 2024;
|
● |
Three operational sites in British Columbia, Canada with installed nameplate capacity of 160MW; 80MW Mackenzie, 50MW Prince George and 30MW Canal Flats;
|
● |
A fourth operational site at Childress, Texas with installed nameplate capacity of 85MW as at 6 May 2024 incrementally increasing to 350 MW by 31 December 2024;
|
● |
Securing additional financing as required to achieve the Group’s growths objectives.
|
Nine months
ended
March 31, 2024
|
Nine months
ended
March 31, 2023
|
|||||||
($ thousands)
|
($ thousands)
|
|||||||
Net cash from/(used) in operating activities
|
47,889
|
(998
|
)
|
|||||
Net cash used in investing activities
|
(187,985
|
)
|
(69,305
|
)
|
||||
Net cash from financing activities
|
330,767
|
(3,240
|
)
|
|||||
Net cash and cash equivalents increase/(decrease)
|
190,671
|
(73,543
|
)
|
|||||
Cash and cash equivalents at the beginning of the period
|
68,894
|
109,970
|
||||||
Effects of exchange rate changes on cash and cash equivalents
|
130
|
(3,276
|
)
|
|||||
Net cash and cash equivalents at the end of the period
|
259,695
|
33,151
|
1 year or
|
Between 1
|
Between 2
|
Over 5
|
Total
|
||||||||||||||||
less
|
and 2 years
|
and 5 years
|
years
|
|||||||||||||||||
($ thousands)
|
||||||||||||||||||||
Non-interest bearing
|
||||||||||||||||||||
Trade and other payables
|
24,256
|
-
|
-
|
-
|
24,256
|
|||||||||||||||
Lease liability
|
369
|
293
|
551
|
2,933
|
4,147
|
|||||||||||||||
Total
|
24,625
|
293
|
551
|
2,933
|
28,403
|
![]() |
• |
Operating hashrate currently 10 EH/s, milestone achieved ahead of schedule
|
• |
2024 expansion plans increased to 30 EH/s
|
o |
Secured latest-generation Bitmain S21 Pro miners with nameplate efficiency of 15 J/TH
|
o |
Upon completion, nameplate fleet efficiency of 16 J/TH and indicative electricity cost per Bitcoin mined of $17k
|
o |
Additional 50MW data center expansion at Childress (announced April 29, 2024)
|
o |
Funding through existing cash and other sources
|
• |
Additional Bitmain S21 Pro miner purchase options (10 EH/s) supporting expansion pathway to 40 EH/s in 1H 2025
|
• |
Existing agreements – Bitmain T21/S21 purchase (5 EH/s)
|
• |
Amended agreement – Bitmain T21 options (11 EH/s)
|
o |
Flexibility, when exercising the options, to select either Bitmain T21 or S21 Pro miners (or a combination of):
|
◾ |
$14.0/TH for Bitmain T21 (unchanged); or
|
◾ |
$18.9/TH for Bitmain S21 Pro (new)
|
o |
Contract size of up to 9 EH/s (if T21 selected in full) or 11 EH/s (if S21 Pro selected in full)
|
o |
Option expiry in March 2025 (previously September 2024)
|
• |
New agreement – Bitmain S21 Pro purchase and options (24 EH/s)
|
o |
12 EH/s purchase at $15.1/TH (plus $3.8/TH payable 9 months after delivery); and
|
o |
12 EH/s options at $18.9/TH
|
◾ |
10 EH/s of which supports expansion pathway to 40 EH/s in 1H 2025
|
![]() |
• |
Childress expansion plan in 2024 increased by 50MW
|
o |
Enabled partly through a new substation design, as well as ongoing improvement and optimization of the Company’s construction and procurement process
|
o |
Global data center capacity now planned at 510MW by the end of 2024
|
• |
Upgrade of the existing miner fleet across British Columbia and Texas
|
![]() |
1. |
Cost per bitcoin mined represents indicative electricity cost per bitcoin mined assuming 30 EH/s, nameplate fleet efficiency of 16 J/TH, weighted average power cost of $0.037/kWh ($0.045/kWh in BC and $0.033/kWh
in Texas – latter calculated using actual monthly average net power price at Childress during FY24 to date (i.e. July 2023 to March 2024), including ERS revenue and adjusted for now eligible 4CP benefit), current global hashrate of 595
EH/s, block reward of 3.125 BTC per block and transaction fees of 0.3 BTC per block.
|
2. |
The new option agreement for 12 EH/s of Bitmain S21 Pro miners can be exercised incrementally until May 2025. The amended option agreement for 9 EH/s of T21 miners or 11 EH/s of S21 Pro miners can be exercised
incrementally over the option period until March 2025. An initial downpayment option fee equal to 10% of the total purchase price is associated with both option agreements.
|
3. |
Cash of $321.5 million reflects USD equivalent, unaudited preliminary cash, cash equivalents and term deposits as of April 30, 2024.
|
• |
Bitcoin Mining: providing security to the Bitcoin network, expanding to 30 EH/s in 2024. Operations since 2019.
|
• |
AI Cloud Services: providing cloud compute to AI customers, 816 NVIDIA H100 GPUs. Operations since 2024.
|
• |
Next-Generation Data Centers: 260MW of operating data centers, expanding to 510MW in 2024. Specifically designed and purpose-built infrastructure for high-performance and power-dense computing applications.
|
• |
Technology: technology stack for performance optimization of AI Cloud Services, Bitcoin Mining and energy trading operations.
|
• |
Development Portfolio: 2,160MW of secured power capacity across North America, >1,000 acre property portfolio and additional development pipeline.
|
• |
100% Renewable Energy (from clean or renewable energy sources or through the purchase of RECs): targets sites with low-cost & underutilized renewable energy, and supports electrical grids and local
communities.
|
![]() |
Media
Jon Snowball
Domestique
+61 477 946 068
Danielle Ghigliera
Aircover Communications
+1 510 333 2707
|
Investors
Lincoln Tan
IREN
+61 407 423 395
lincoln.tan@iren.com
|
![]() |
![]() |
![]() |
PROCEED WITH PURPOSE.
|
6
|
Document and Entity Information |
9 Months Ended |
---|---|
Mar. 31, 2024 | |
Cover [Abstract] | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2024 |
Current Fiscal Year End Date | --06-30 |
Entity Registrant Name | Iris Energy Ltd |
Entity Central Index Key | 0001878848 |
Entity File Number | 001-41072 |
Entity Address, Address Line One | Level 12 |
Entity Address, Address Line Two | 44 Market Street |
Entity Address, City or Town | Sydney, NSW |
Entity Address, Country | AU |
Entity Address, Postal Zip Code | 2000 |
Unaudited interim consolidated statements of profit or loss and other comprehensive income - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Revenue | ||||
Bitcoin mining revenue | $ 53,383 | $ 11,327 | $ 129,827 | $ 41,294 |
AI Cloud Service revenue | 567 | 0 | 567 | 0 |
Other income | 399 | 1,798 | 926 | 3,117 |
Gain/(loss) on disposal of subsidiaries | 0 | 3,257 | 0 | 3,257 |
Revenue | 54,349 | 16,382 | 131,320 | 47,668 |
Expenses | ||||
Depreciation | (8,692) | (5,125) | (23,870) | (24,122) |
Electricity charges | (19,834) | (5,973) | (55,944) | (19,910) |
Realized gain/(loss) on financial asset | 91 | 0 | 3,210 | 0 |
Employee benefits expense | (4,333) | (2,470) | (12,844) | (11,138) |
Share-based payments expense | (5,817) | (3,503) | (17,622) | (10,273) |
Impairment of assets | 0 | 0 | 0 | (105,172) |
Reversal of impairment of assets | 0 | 0 | 108 | 0 |
Professional fees | (2,018) | (1,117) | (5,938) | (4,086) |
Site expenses | (2,096) | (1,290) | (5,892) | (3,329) |
Other operating expenses | (4,537) | (1,966) | (14,809) | (7,232) |
Gain/(loss) on sale of assets | 1 | (160) | 16 | (6,616) |
Unrealized gain/(loss) on financial asset | (1,091) | 0 | (1,349) | 0 |
Operating profit/(loss) | 6,023 | (5,222) | (3,614) | (144,210) |
Finance expense | (126) | (2,311) | (190) | (16,227) |
Interest income | 1,500 | 244 | 2,878 | 458 |
Foreign exchange gain/(loss) | 4,714 | 4,557 | 2,265 | (2,619) |
Profit/(loss) before income tax expense | 12,111 | (2,732) | 1,339 | (162,598) |
Income tax (expense)/benefit | (3,473) | (321) | (3,228) | (2,349) |
Profit/(loss) after income tax expense for the period | 8,638 | (3,053) | (1,889) | (164,947) |
Items that may be reclassified subsequently to profit or loss | ||||
Foreign currency translation | (7,334) | (9,126) | (5,331) | (21,241) |
Other comprehensive income/(loss) for the period, net of tax | (7,334) | (9,126) | (5,331) | (21,241) |
Total comprehensive income/(loss) for the period | $ 1,304 | $ (12,179) | $ (7,220) | $ (186,188) |
Basic earnings per share (in dollars per share) | $ 0.0827 | $ (0.057) | $ (0.0232) | $ (3.1003) |
Diluted earnings per share (in dollars per share) | $ 0.077 | $ (0.057) | $ (0.0232) | $ (3.1003) |
General information |
9 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||
General information [Abstract] | |||||||||||||
General information |
Note 1. General information
These unaudited interim consolidated financial statements cover Iris Energy Limited (d.b.a. IREN) as a Group
consisting of Iris Energy Limited ("Company" or "Parent Entity") and the entities it controlled at the end of, or during, the period (collectively the "Group").
The Company’s shares trade on the NASDAQ under the ticker symbol “IREN”.
Iris Energy Limited is incorporated and domiciled in Australia. Its registered office and principal place of
business are:
The Group is a leading next-generation data center business powering the future of Bitcoin, AI and beyond.
The unaudited interim consolidated financial statements were authorized for issue, in accordance with a resolution
of Directors, on 15 May 2024. The Directors have the power to amend and reissue the unaudited
interim consolidated financial statements.
|
Significant accounting policies |
9 Months Ended | ||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||
Significant accounting policies [Abstract] | |||||||||||||||||||||||||
Significant accounting policies |
Note 2. Significant accounting policies
These unaudited interim consolidated financial statements for the periods ended 31 March 2024 have been prepared in
accordance with IAS 34 Interim Financial Reporting, and should be read in conjunction with the Group’s last annual consolidated financial statements as at and for the year ended 30 June 2023 (‘last
annual financial statements’). They do not include all of the information required for a complete set of financial statements prepared in accordance with International Financial Reporting Standards
("IFRS"). However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group’s financial position and performance since the last annual financial statements
for the year ended 30 June 2023.
The accounting policies adopted are consistent with those of the previous financial year and corresponding interim
reporting period, except for the policies stated
below.
Revenue recognition
The Group records revenue from contracts with customers in accordance with IFRS 15, Revenue from Contracts with Customers (“IFRS 15”)
as follows:
Bitcoin mining revenue
The Group operates data center infrastructure supporting the verification and validation of Bitcoin blockchain transactions in
exchange for Bitcoin, referred to as “Bitcoin mining”. The Company has entered into arrangements with mining pools, whereby computing power is directed to the mining pools in exchange for non-cash consideration in the form of Bitcoin. The
provision of computing power is the only performance obligation in the contract with the mining pool operators.
The Company has the right to decide the point in time and duration for which it will provide hash computation services to the mining
pools. The contracts are terminable at any time by either party without substantive compensation to the other party for such termination. Upon termination, the mining pool operator (i.e., the customer) is required to pay the Company any
amount due related to previously satisfied performance obligations. Therefore, the Company has determined that the duration of the contract is less than 24 hours and that the contract continuously renews throughout the day.
In the mining pools which the Company participated in during the periods, the Company is not directly exposed to the pool’s success
in mining blocks. The Company is rewarded in Bitcoin for the hashrate it contributes to these mining pools. The reward for the hashrate contributed by the Company is based on the current network difficulty and global daily revenues from
transaction fees, less mining pool fees.
The fair value of the non-cash consideration is determined using the quantity of Bitcoin received multiplied by the spot price of the
Bitcoin price at the end of the day at the website of Kraken, the trading platform over which we exchange the Bitcoin we have mined (“Kraken”).
Management considers the prices quoted on Kraken to be a Level 1 input under IFRS 13 Fair Value Measurement. The Group did not hold any Bitcoin on hand as at 31 March 2024 (31 March 2023:
).AI Cloud Services revenue
The Group generates AI Cloud Services revenue through the provision of AI Cloud Services to clients. Revenue is measured at the fair value of the consideration received or receivable for services, net of discounts and sales taxes. The steps involved in recognising AI Cloud Services revenue are set out as follows:
Going concern
The Group has determined there is material uncertainty that may cast significant doubt on the Group’s ability to
continue as a going concern but has concluded it is appropriate to prepare the consolidated financial statements on a going concern basis which contemplates continuity of normal business activities, the realization of assets and
settlement of liabilities in the ordinary course of business. The operating cash flows generated by the Group are inherently linked to several key uncertainties and risks including, but not limited to, volatility associated with the
economics of Bitcoin mining and the ability of the Group to execute its business plan.
For the nine-month period ended 31 March 2024, the Group incurred a loss after tax of $1,889,000 (31 March 2023: $164,947,000)
and net operating cash inflows of $47,889,000 (31 March 2023: outflows of $998,000). As at 31 March 2024, the Group had net current assets of $268,693,000
(30 June 2023: net current assets of $65,229,000) and net assets of $677,240,000 (30 June 2023: net assets of $305,361,000).
As further background, the Group owns mining hardware that is designed specifically to mine Bitcoin and its
future success will depend in a large part upon the value of Bitcoin, and any sustained decline in its value could adversely affect the business and results of operations. Specifically, the revenues from Bitcoin mining operations are
predominantly based upon two factors: (i) the number of Bitcoin rewards that are successfully mined and (ii) the value of Bitcoin. A decline in the market price of Bitcoin, increases in the difficulty of Bitcoin mining including the
halving event which occurred in April 2024, changes in the regulatory environment, and/or adverse changes in other inherent risks may significantly negatively impact the Group’s operations. Due to the volatility of the Bitcoin price and
the effects of the other aforementioned factors, there can be no guarantee that future mining operations will be profitable, or the Group will be able to raise capital to meet growth objectives.
The strategy to mitigate these risks and uncertainties is to try to execute a business plan aimed at operational
efficiency, revenue growth, improving overall mining profit, managing operating expenses and working capital requirements, maintaining potential capital expenditure optionality, and securing additional financing, as needed, through one or
more debt and/or equity capital raisings.
Our growth and risk mitigation strategies include pursuing a strategy to diversify our revenue streams into new
markets. This includes the expansion into the provision of AI Cloud Services. The Group signed a contract with an initial AI Cloud Services client and commenced revenue generating operations during the three months ended 31 March 2024.
The continuing viability of the Group and its ability to continue as a going concern and meet its debts and
commitments as they fall due are therefore significantly dependent upon several factors. These factors have been considered in preparing a cash flow forecast over the next 12 months to consider the going concern of the Group. The key
assumptions include:
The key assumptions have been stress tested using a range of Bitcoin price and global hashrate scenarios including with respect to the halving event that occurred in April 2024. The Group aims to maintain a
degree of flexibility in both operating and capital expenditure cash flow management where it practicably makes sense, including ongoing internal cash flow monitoring and projection analysis performed to identify potential liquidity
risks arising and to try to respond accordingly.
As a result, the Group has concluded there is material uncertainty related to events or conditions that may
cast significant doubt on the Group’s ability to continue as a going concern and, therefore, that it may be unable to realize its assets and discharge its liabilities in the normal course of business. However, the Group considers that
it will be successful in the above matters and will have adequate cash reserves to enable it to meet its obligations for at least one year
from the date of approval of the consolidated financial statements, and, accordingly, has prepared the consolidated financial statements on a going concern basis.
New or amended Accounting Standards and Interpretations adopted
The Group has adopted all of the new or
amended IFRS and Interpretations as issued by the International Accounting Standards Board ("IASB") that are mandatory for the current reporting period.
Any new or amended Accounting Standards or
Interpretations that are not yet mandatory have not been early adopted. The Group believes that the impact of recently issued standards or amendments to existing standards that are not yet effective will not have a material impact
on the Group’s unaudited interim consolidated financial statements.
|
Other income |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income |
Note 3. Other income
Other income for
the periods ended 31 March 2024 comprises income generated from an Emergency Response Service ("ERS") program entered into in Texas. This ERS program is a demand response program designed to help Electric Reliability Council of Texas (“ERCOT”)
mitigate rolling blackouts. Other income is generated by the Group’s participation in this program at the site in Childress, Texas.
Other income for
the periods ended 31 March 2023 primarily relates to gain on disposal of other assets.
|
Other operating expenses |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other operating expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other operating expenses |
Note 4. Other operating expenses
|
Cash and cash equivalents |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents |
Note 5. Cash and cash equivalents
|
Other receivables |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other receivables |
Note 6. Other receivables
|
Financial assets at fair value through profit or loss |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial assets at fair value through profit or loss [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial assets at fair value through profit or loss |
Note 7. Financial assets at fair value through
profit or loss
Power Supply Agreement
A subsidiary of the
Company (“the Subsidiary”) entered into a Power Supply Agreement ("PSA") for the procurement of
electricity at the Childress site.
Under the PSA, the
Subsidiary has the right to purchase a fixed quantity of electricity in advance at a fixed price however, the Subsidiary has no obligation to take physical delivery of electricity purchased. For any unused electricity purchased, the Subsidiary
sells the unused electricity to the counterparty of the PSA at the prevailing spot price at the time of curtailment.
As the PSA meets the
definition of a financial instrument under IAS 32, it is accounted for as a financial asset at fair value through Profit and Loss under IFRS 9.
Accordingly, the PSA
is recorded at an estimated fair value each reporting period with the change in the fair value recorded in change in fair value of financial asset in the consolidated statements of operations.
As at 31 March 2024,
the financial asset comprises the fair value of unused electricity purchased for the forward period to 31 May 2024.
On settlement, a
realized gain or loss on a financial asset is recognised in profit or loss. The gain or loss is calculated based on the unused quantity of electricity multiplied by prevailing spot price at the time of curtailment less the price paid upon
prepayment (fixed costs). For the nine and three month periods ended 31 March 2024, the realised gain was $3.2m (2023:
) and $0.1m (2023: ) respectively. |
Computer hardware prepayments |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computer hardware prepayments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computer hardware prepayments |
Note 8. Computer hardware prepayments
Computer hardware prepayments represent payments made by the Group for the purchase of mining hardware for our
Childress data center and High-performance computing ("HPC") hardware. These prepayments are in accordance with payment schedules set out in relevant purchase agreements with hardware manufacturers.
The mining hardware prepayments at 31 March 2024 include a non-refundable deposit of $12,768,000 as an initial 10%
option down payment in relation to a hardware purchase option to acquire up to 48,000 Bitmain T21 miners (9.1 EH/s) at a price of $14/TH.
If the entire option is exercised, the total contracted cost will be $127,680,000. If the option is exercised, the miners can be
scheduled for phased shipment in monthly batches from June 2024 to November 2024. As at 31 March 2024, final decisions with respect to exercising miner purchase options have not been made by the Group. Refer to Note 19 Subsequent events for
further information.
|
Prepayments and other assets |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepayments and other assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepayments and other assets |
Note 9. Prepayments and other assets
Non-current
deposits include connection deposits paid for expansion projects in British Columbia, Canada and West Texas, USA.
|
Property, plant and equipment |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, plant and equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, plant and equipment |
Note 10. Property, plant and equipment
Reconciliations
Reconciliations of the written down values at the beginning and end of the current period are set out below:
For the Nine Months Ended 31
March 2024
Depreciation of mining hardware commences once units are installed onsite and available for use.
Development assets includes costs related to the development of data center infrastructure at Childress, Texas
along with other early-stage development costs.
Depreciation will commence on the development assets at Childress as each phase of the underlying
infrastructure becomes available for use.
|
Lease liabilities |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease liabilities |
Note 11. Lease liabilities
Lease liabilities
The Group's lease
liability includes a 30-year lease of a site in Prince George, B.C., Canada, a three-year lease of a corporate office in Sydney, Australia and a five-year
corporate office lease in Vancouver, B.C., Canada.
|
Provisions |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provisions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provisions |
Note 12. Provisions
Non-Refundable Sales Tax
The Canada Revenue Agency (“CRA”) is currently conducting an audit of input tax credits (“ITCs”) claimed by
several of the Group’s Canadian subsidiaries. The CRA has issued an assessment in relation to one of the subsidiaries which, the Directors believe may be applied across the Group’s Canadian subsidiaries. Under the proposed decision, the
CRA has noted that ITCs claimed by the Group would be allowed. However, the Canadian subsidiaries would also be required to remit an amount of 5%
on services exported to the Australian parent under an intercompany service agreement. The export of services typically attracts a 0%
rate of GST in Canada. If GST were to apply to these services at a rate of 5%, the Australian parent may not be permitted to
recover this tax.
The Group has submitted additional information to the CRA to further support the ITCs claimed and the 0% rate
applied to the exported services and submitted a formal notice of objection to the CRA in November 2022. The CRA has acknowledged receipt of the appeal application and further correspondence was received from the CRA in April 2024. The
Group is currently reviewing this correspondence and will respond accordingly.
Recent amendments made to Canadian Tax legislation in June 2023 are being considered by the relevant
subsidiaries and the CRA. In March 2024, the CRA issued interpretation guidance on the new legislation and in light of this the relevant subsidiaries submitted additional requests to the CRA to further support its entitlement to claim the
ITCs. The affected subsidiaries continue to accrue a provision in line with the aforementioned methodology.
|
Issued capital |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issued capital [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issued capital |
Note 13. Issued capital
Movements in ordinary share capital
At-the-market Facility
On 13 September
2023, Iris Energy Limited (d.b.a. IREN) entered into an At-the-market ("ATM") Sales Agreement with B. Riley Securities, Inc., Cantor Fitzgerald & Co. and Compass Point Research & Trading, LLC, pursuant to which Iris Energy Limited (d.b.a.
IREN) has the option, but not the obligation, to sell up to $300,000,000 of its ordinary shares through or to the Brokers, for a period
of up to 36 months.
On 21 March 2024,
the Company added Canaccord Genuity LLC, Citigroup Global Markets Inc. and Macquarie Capital (USA) Inc. as Sales Agents pursuant to the Sales Agreement and filed a new prospectus supplement relating to the offer and sales of its ordinary shares
under the Sales Agreement, which reflected an increase of $200,000,000 in the aggregate offering price, from an aggregate of up to $300,000,000 under the previously filed prospectus supplement relating to the offer and sale of ordinary shares under the Sales Agreement (“the ATM
Facility”). As a result, in accordance with the terms of the Sales Agreement, the Company may offer and sell its ordinary shares having an aggregate offering price of up to $500,000,000. As at 31 March 2024, 60,570,797 shares have been
issued under the ATM facility raising total gross proceeds of approximately $318,468,000.
During the three
month period 55,891,597 ordinary shares were issued under the ATM Facility raising gross proceeds of approximately $294,214,000.
Committed Equity Facility
On 23 September
2022 Iris Energy Limited (d.b.a. IREN) entered into a share purchase agreement with B. Riley Principal Capital II, LLC (“B. Riley”) to establish a committed equity facility (“ELOC”), pursuant to which IREN may, at its option, sell up to US$100 million of ordinary shares to B. Riley over a two-year
period. During the three-month period ended 31 March 2024, no shares were issued under the facility and the share purchase agreement
was terminated. Effective 15 February 2024, the Company terminated this facility. During the nine month period ended 31 March 2024, 12,887,814
shares were issued under the ELOC facility raising total Gross proceeds of approximately, $51,417,000.
Loan-funded shares
As at 31 March
2024, there are 1,954,049 (30 June 2023: 1,954,049)
restricted ordinary shares issued to management under the Employee Share Plan as well as certain non-employee founders of Podtech Innovation Inc. The total number of ordinary shares outstanding (including the loan funded shares) is 140,365,780 as at 31 March 2024 (30 June 2023: 66,701,526).
|
Earnings per share |
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Earnings per share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per share |
Note 14. Earnings per share
Basic earnings
per share is computed by dividing net profit/(loss) after income tax by the weighted average number of ordinary shares outstanding during the period. Diluted earnings per share is calculated by adjusting the profit or loss
attributable to ordinary shareholders, and the weighted average number of shares outstanding, for the effects of all dilutive potential ordinary shares.
For the three month period ended 31 March 2024, 416,733 shares were excluded in determining the diluted earnings per share as their effect is anti-dilutive. For the other periods presented, potential ordinary shares have not been included in the calculation diluted earnings per share because their effect is antidilutive.
|
Contingent liabilities |
9 Months Ended |
---|---|
Mar. 31, 2024 | |
Contingent liabilities [Abstract] | |
Contingent liabilities |
Note 15. Contingent liabilities
In addition to PwC continuing in their capacity as receiver in respect of the Non-Recourse
SPVs, a hearing was held in June 2023 in The Supreme Court of British Columbia with respect to, among other things, claims brought by the lender, NYDIG ABL LLC, seeking remedies regarding the limited recourse equipment financing
facilities entered into by the Non-Recourse SPVs. A judgement on these proceedings was delivered on 10 August 2023 which declared, among other things, that the transactions pursuant to hashpower services provided by the Non-Recourse SPVs
to the Company to be void. On 21 August 2023, the Company filed a notice to appeal the judgement. NYDIG ABL LLC had until 15 September 2023 to file a notice of cross-appeal however on 10 January 2024, it bought an application to extend
the time to file such a notice. The hearing for the application seeking to extend the time to cross-appeal was held on 30 January 2024 which granted NYDIG’s application. On 31 January 2024 NYDIG filed its notice of cross appeal with the
Court of Appeal seeking an order that the substantive consolidation and oppression remedies be remitted to the Supreme Court for consideration and reasons. On 12 March 2024, the hearing for the Company’s appeal and NYDIG’s cross appeal
was held in by the Court of Appeal.
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Commitments |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments |
Note 16. Commitments
As at 31 March 2024, the Group had
commitments of $65,856,000 (30 June 2023: $7,481,000) which are payable in instalments from March 2024 to March 2025.
As at 31 March 2024, total Group commitments are set out in the table below (excludes shipping and taxes).
In addition to those commitments, a subsidiary of the Group also entered into an option agreement with Bitmain to acquire up to 48,000 Bitmain T21 miners (9.1
EH/s) at a price of $14/TH. If the entire option is exercised, the total contracted cost will be $127,680,000. If the option is exercised, the miners can be scheduled for phased shipment in monthly batches from June 2024 to November
2024. As at 31 March 2024, final decisions with respect to exercising miner purchase options have not been made by the Group. Refer to note 8 for further information.
|
Share-based payments |
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Share-based payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based payments |
Note 17. Share-based payments
The Group has entered into a number of share-based compensation arrangements. Details of these arrangements,
which are considered as options for accounting purposes, are described in Group’s Consolidated Financial Statements for the year ended 30 June 2023.
2023
Long-Term Incentive Plan Restricted Stock Units
On
July 1, 2023, our Board approved a revised long term incentive plan under which participating employees have been granted RSUs in three
tranches, the first two tranches being time-based vesting conditions and the
tranche being performance-based vesting conditions. RSUs issued under the revised long term incentive plan are subject to other terms and conditions
contained in the plan.Under
the terms of the plan, the Board maintains sole discretion over the administration, eligibility and vesting criteria of instruments issued under the LTIP.
During
the nine month period ended 31 March 2024, the following grants were made under the 2023 LTIP:
Reconciliation of outstanding share options
Set out below are summaries of options granted under all plans:
As at 31 March 2024, the weighted average remaining contractual life of options outstanding is 6.63 years (30 June 2023: 7.57
years). As at 31 March 2024 the exercise prices associated with the options outstanding ranges from $1.53 to $75.00 (30 June 2023: $1.53 to $75.00).
The
Company recorded a total of $3,092,000 and $9,397,000 respectively as share based payment expense during the three and nine months ended 31 March 2024 ($3,150,000
and $9,273,000 for three and nine months ended 31 March 2023), based on the vesting schedule of such options.
Reconciliation
of outstanding RSUs
Set out below are summaries of RSUs granted
under all plans:
As at 31
March 2024, the weighted average remaining contractual life of RSUs outstanding is 3.01 years (30 June 2023: 4.55 years). All RSUs have a
weighted average exercise price.The
Company recorded a total of $2,725,000 and $8,225,000 respectively as share based payment expense based on the vesting schedule of the granted RSUs during the three and nine months ended 31 March 2024 ($352,000 and $1,000,000 for the three and nine months
ended 31 March 2023).
|
Related party transactions |
9 Months Ended |
---|---|
Mar. 31, 2024 | |
Related party transactions [Abstract] | |
Related party transactions |
Note 18. Related party
transactions
Parent entity
Iris Energy Limited(d.b.a IREN) is the ultimate parent entity.
Changes in key management personnel
There have been no new appointments made to key management personnel during the period.
Transactions with related parties
There
were no transactions with related parties during the current and previous period.
Receivable from and payable to related parties
There were no
trade receivables from or trade payables to related parties at the current and previous reporting date.
Loans from/to related parties
There were no
loans to or from related parties at the current and previous reporting date.
|
Events after the reporting period |
9 Months Ended |
---|---|
Mar. 31, 2024 | |
Events after the reporting period [Abstract] | |
Events after the reporting period |
Note 19. Events after the reporting period
ATM Facility
Subsequent
to 31 March 2024, the Company issued a further 8,172,310 Ordinary shares for total gross proceeds of approximately $44,886,000.
Bitmain
Hardware Purchase and Options Agreements
On
9 May 2024, the Group entered into a new firm purchase agreement with Bitmain Technologies Delaware Limited (“Bitmain”) to purchase approximately 51,480 Bitmain S21 Pro miners (12.0 EH/s) at a price of $18.9/TH. The purchased miners are scheduled to be shipped in July and August 2024. The total contracted cost is $227,676,000 payable in instalments.
This
new agreement also includes an additional purchase option to procure approximately 51,480 Bitmain S21 Pro (12.0 EH/s) at a price of $18.9/TH
including a non-refundable deposit of $22,768,000 as an initial 10% option down payment. The options can be exercised incrementally over the option period until May 2025. If the entire option is exercised, the total contracted cost will
be $227,676,000.
Additionally on 9 May 2024, the Group amended its existing option agreement with Bitmain. Under the existing agreement the Group paid a non-refundable deposit of $12,768,000 in January 2024 as an initial 10% option down
payment in relation to a hardware purchase option to acquire up to approximately 48,000 Bitmain T21 miners (9.1 EH/s) at a price of $14/TH.
The total contracted cost under the existing agreement is $127,680,000.
The
amended option agreement provides additional flexibility to exercise the options to procure either Bitmain T21 miners, with the contracted cost remaining unchanged, or upgrade to approximately 48,000 S21 Pro miners, at a total contracted cost of $212,285,000 being $18.90/TH for 11.2 EH/s. The amended option agreement also allows for the exercise of a combination of both T21 or S21 Pro miners. The amended
agreement requires an additional non-refundable deposit of $8,460,000 to be paid within
days of signing the amendment. The amended options can be exercised incrementally over the option period until March 2025.
Decisions with respect to exercising all, some or none of the miner purchase options will be made during the respective option periods.
Registration statement
On 15 May 2024, the Board approved the filing of a new registration statement, including an accompanying prospectus, providing for the offer and sale of $500,000,000 of securities by the Company, as well as a prospectus supplement relating to the offer and sale of $500,000,000 additional ordinary shares pursuant to the current ATM facility (see Note 13 for further details). The registration
statement is not yet effective, but if declared effective, the registration statement, together with the accompanying prospectus and prospectus supplement relating to the Sales Agreement, would provide the Company with the option,
but not the obligation, to sell an additional $500,000,000 of ordinary shares pursuant to the Sales Agreement.
No
other matter or circumstance has arisen since 31 March 2024 that has significantly affected, or may significantly affect the Group's operations, the results of those operations, or the Group's state of affairs in future financial
years.
|
Significant accounting policies (Policies) |
9 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||
Significant accounting policies [Abstract] | |||||||||||||||||
Basis of preparation |
These unaudited interim consolidated financial statements for the periods ended 31 March 2024 have been prepared in
accordance with IAS 34 Interim Financial Reporting, and should be read in conjunction with the Group’s last annual consolidated financial statements as at and for the year ended 30 June 2023 (‘last
annual financial statements’). They do not include all of the information required for a complete set of financial statements prepared in accordance with International Financial Reporting Standards
("IFRS"). However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group’s financial position and performance since the last annual financial statements
for the year ended 30 June 2023.
The accounting policies adopted are consistent with those of the previous financial year and corresponding interim
reporting period, except for the policies stated
below.
|
||||||||||||||||
Revenue recognition |
Revenue recognition
The Group records revenue from contracts with customers in accordance with IFRS 15, Revenue from Contracts with Customers (“IFRS 15”)
as follows:
Bitcoin mining revenue
The Group operates data center infrastructure supporting the verification and validation of Bitcoin blockchain transactions in
exchange for Bitcoin, referred to as “Bitcoin mining”. The Company has entered into arrangements with mining pools, whereby computing power is directed to the mining pools in exchange for non-cash consideration in the form of Bitcoin. The
provision of computing power is the only performance obligation in the contract with the mining pool operators.
The Company has the right to decide the point in time and duration for which it will provide hash computation services to the mining
pools. The contracts are terminable at any time by either party without substantive compensation to the other party for such termination. Upon termination, the mining pool operator (i.e., the customer) is required to pay the Company any
amount due related to previously satisfied performance obligations. Therefore, the Company has determined that the duration of the contract is less than 24 hours and that the contract continuously renews throughout the day.
In the mining pools which the Company participated in during the periods, the Company is not directly exposed to the pool’s success
in mining blocks. The Company is rewarded in Bitcoin for the hashrate it contributes to these mining pools. The reward for the hashrate contributed by the Company is based on the current network difficulty and global daily revenues from
transaction fees, less mining pool fees.
The fair value of the non-cash consideration is determined using the quantity of Bitcoin received multiplied by the spot price of the
Bitcoin price at the end of the day at the website of Kraken, the trading platform over which we exchange the Bitcoin we have mined (“Kraken”).
Management considers the prices quoted on Kraken to be a Level 1 input under IFRS 13 Fair Value Measurement. The Group did not hold any Bitcoin on hand as at 31 March 2024 (31 March 2023:
).AI Cloud Services revenue
The Group generates AI Cloud Services revenue through the provision of AI Cloud Services to clients. Revenue is measured at the fair value of the consideration received or receivable for services, net of discounts and sales taxes. The steps involved in recognising AI Cloud Services revenue are set out as follows:
|
||||||||||||||||
Going concern |
Going concern
The Group has determined there is material uncertainty that may cast significant doubt on the Group’s ability to
continue as a going concern but has concluded it is appropriate to prepare the consolidated financial statements on a going concern basis which contemplates continuity of normal business activities, the realization of assets and
settlement of liabilities in the ordinary course of business. The operating cash flows generated by the Group are inherently linked to several key uncertainties and risks including, but not limited to, volatility associated with the
economics of Bitcoin mining and the ability of the Group to execute its business plan.
For the nine-month period ended 31 March 2024, the Group incurred a loss after tax of $1,889,000 (31 March 2023: $164,947,000)
and net operating cash inflows of $47,889,000 (31 March 2023: outflows of $998,000). As at 31 March 2024, the Group had net current assets of $268,693,000
(30 June 2023: net current assets of $65,229,000) and net assets of $677,240,000 (30 June 2023: net assets of $305,361,000).
As further background, the Group owns mining hardware that is designed specifically to mine Bitcoin and its
future success will depend in a large part upon the value of Bitcoin, and any sustained decline in its value could adversely affect the business and results of operations. Specifically, the revenues from Bitcoin mining operations are
predominantly based upon two factors: (i) the number of Bitcoin rewards that are successfully mined and (ii) the value of Bitcoin. A decline in the market price of Bitcoin, increases in the difficulty of Bitcoin mining including the
halving event which occurred in April 2024, changes in the regulatory environment, and/or adverse changes in other inherent risks may significantly negatively impact the Group’s operations. Due to the volatility of the Bitcoin price and
the effects of the other aforementioned factors, there can be no guarantee that future mining operations will be profitable, or the Group will be able to raise capital to meet growth objectives.
The strategy to mitigate these risks and uncertainties is to try to execute a business plan aimed at operational
efficiency, revenue growth, improving overall mining profit, managing operating expenses and working capital requirements, maintaining potential capital expenditure optionality, and securing additional financing, as needed, through one or
more debt and/or equity capital raisings.
Our growth and risk mitigation strategies include pursuing a strategy to diversify our revenue streams into new
markets. This includes the expansion into the provision of AI Cloud Services. The Group signed a contract with an initial AI Cloud Services client and commenced revenue generating operations during the three months ended 31 March 2024.
The continuing viability of the Group and its ability to continue as a going concern and meet its debts and
commitments as they fall due are therefore significantly dependent upon several factors. These factors have been considered in preparing a cash flow forecast over the next 12 months to consider the going concern of the Group. The key
assumptions include:
The key assumptions have been stress tested using a range of Bitcoin price and global hashrate scenarios including with respect to the halving event that occurred in April 2024. The Group aims to maintain a
degree of flexibility in both operating and capital expenditure cash flow management where it practicably makes sense, including ongoing internal cash flow monitoring and projection analysis performed to identify potential liquidity
risks arising and to try to respond accordingly.
As a result, the Group has concluded there is material uncertainty related to events or conditions that may
cast significant doubt on the Group’s ability to continue as a going concern and, therefore, that it may be unable to realize its assets and discharge its liabilities in the normal course of business. However, the Group considers that
it will be successful in the above matters and will have adequate cash reserves to enable it to meet its obligations for at least one year
from the date of approval of the consolidated financial statements, and, accordingly, has prepared the consolidated financial statements on a going concern basis.
|
||||||||||||||||
New or amended Accounting Standards and Interpretations adopted |
New or amended Accounting Standards and Interpretations adopted
The Group has adopted all of the new or
amended IFRS and Interpretations as issued by the International Accounting Standards Board ("IASB") that are mandatory for the current reporting period.
Any new or amended Accounting Standards or
Interpretations that are not yet mandatory have not been early adopted. The Group believes that the impact of recently issued standards or amendments to existing standards that are not yet effective will not have a material impact
on the Group’s unaudited interim consolidated financial statements.
|
Other income (Tables) |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Other Income |
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Other operating expenses (Tables) |
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Other operating expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Operating Expenses |
|
Cash and cash equivalents (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents |
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Other receivables (Tables) |
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Financial assets at fair value through profit or loss (Tables) |
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Financial Assets at Fair Value through Profit or Loss |
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Computer hardware prepayments (Tables) |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computer hardware prepayments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mining Hardware Prepayments |
|
Prepayments and other assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepayments and other assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepayments and other assets |
|
Property, plant and equipment (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, plant and equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Property, Plant and Equipment |
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Reconciliations of Written Down Values of Property, Plant and Equipment |
Reconciliations of the written down values at the beginning and end of the current period are set out below:
For the Nine Months Ended 31
March 2024
|
Lease liabilities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease Liabilities |
|
Provisions (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provisions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provisions |
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Issued capital (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issued capital [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issued Capital |
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Movements in Ordinary Share Capital |
Movements in ordinary share capital
|
Earnings per share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share Basic and Diluted |
|
Commitments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturity of Committed Amount Payable |
As at 31 March 2024, total Group commitments are set out in the table below (excludes shipping and taxes).
|
Share-based payments (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Outstanding Share Options |
Set out below are summaries of options granted under all plans:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Outstanding RSUs |
Set out below are summaries of RSUs granted
under all plans:
|
Significant accounting policies (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Mar. 31, 2024 |
Mar. 31, 2023 |
Jun. 30, 2023 |
|
Bitcoin mining revenue [Abstract] | |||||
Bitcoin on hand | $ 0 | $ 0 | $ 0 | $ 0 | |
Going concern [Abstract] | |||||
Loss after income tax | 8,638 | $ (3,053) | (1,889) | (164,947) | |
Net operating cash (outflows) inflows | 47,889 | $ (998) | |||
Net current assets | 268,693 | 268,693 | $ 65,229 | ||
Net assets | $ 677,240 | $ 677,240 | $ 305,361 | ||
Minimum [Member] | |||||
Going concern [Abstract] | |||||
Period to adequate cash reserves to enable to meet its obligations from date of approval | 1 year |
Other income (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Other income [Abstract] | ||||
ERS Revenue | $ 399 | $ 0 | $ 926 | $ 0 |
Net gain on disposal of other assets | 0 | 1,798 | 0 | 3,117 |
Total other income | $ 399 | $ 1,798 | $ 926 | $ 3,117 |
Other operating expenses (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Other operating expenses [Abstract] | ||||
Insurance | $ 1,736 | $ 1,160 | $ 4,835 | $ 4,552 |
Sponsorship and marketing | 748 | 66 | 1,442 | 176 |
Charitable donations | 4 | 9 | 237 | 158 |
Filing fees | 21 | 19 | 57 | 58 |
ERS fees | 24 | 0 | 56 | 0 |
Site identification costs | 0 | 0 | 0 | 15 |
Non-refundable sales tax (See Note 12) | 1,351 | 402 | 4,317 | 1,429 |
Non-refundable provincial sales tax | 340 | 70 | 963 | 70 |
Other expenses | 313 | 240 | 1,105 | 774 |
Legal expenses | 0 | 0 | 1,797 | 0 |
Total other operating expenses | $ 4,537 | $ 1,966 | $ 14,809 | $ 7,232 |
Cash and cash equivalents (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Jun. 30, 2022 |
---|---|---|---|---|
Current assets [Abstract] | ||||
Cash at bank | $ 259,695 | $ 38,657 | ||
Cash on deposit | 0 | 30,237 | ||
Total cash and cash equivalents | $ 259,695 | $ 68,894 | $ 33,151 | $ 109,970 |
Other receivables (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Jun. 30, 2023 |
---|---|---|
Current assets [Abstract] | ||
Share issuance proceeds | $ 28,376 | $ 1,581 |
Trade and other receivables | 567 | 97 |
Provincial sales tax receivable | 0 | 122 |
Goods and services tax receivable | 6,924 | 4,743 |
Total other receivables | $ 35,867 | $ 6,543 |
Financial assets at fair value through profit or loss (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Mar. 31, 2024 |
Mar. 31, 2023 |
Jun. 30, 2023 |
|
Current assets [Abstract] | |||||
Electricity financial asset | $ 3,425 | $ 0 | $ 3,425 | $ 0 | $ 0 |
Reconciliation of the fair values at the beginning and end of the current and previous financial period are set out below: [abstract] | |||||
Opening fair value | 1,280 | 0 | 0 | 0 | 0 |
Additions | 9,388 | 10,926 | 0 | 0 | |
Financial asset realized | (6,152) | (6,152) | 0 | 0 | |
Revaluation decrements (unrealized loss) | (1,091) | 0 | (1,349) | 0 | 0 |
Closing fair value | 3,425 | 0 | 3,425 | 0 | $ 0 |
Realized gain/(loss) on financial asset | $ 91 | $ 0 | $ 3,210 | $ 0 |
Computer hardware prepayments (Details) |
9 Months Ended | |
---|---|---|
Mar. 31, 2024
USD ($)
Miners
|
Jun. 30, 2023
USD ($)
|
|
Non-current assets [abstract] | ||
Mining hardware prepayments | $ 39,440,000 | $ 68,000 |
High-performance computing hardware prepayments | 1,967,000 | 0 |
Total computer hardware prepayment | $ 41,407,000 | $ 68,000 |
Mining Hardware purchase contract and option [Abstract] | ||
Purchase price of Bitmain T21 miners per Terahash | 14 | |
Miner Purchase Option with Bitmain [Member] | Mining assets [member] | ||
Mining Hardware purchase contract and option [Abstract] | ||
Non-refundable deposit paid as initial down payment | $ 12,768,000 | |
Percentage of initial down payment of deposit | 10.00% | |
Additional Bitmain miners purchased | Miners | 48,000 | |
Increase in Hashrate operating capacity of Bitmain T21 miners | 9.1 | |
Purchase price of Bitmain T21 miners per Terahash | 14 | |
Proceeds from options exercised | $ 127,680,000 |
Prepayments and other assets (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Jun. 30, 2023 |
---|---|---|
Current assets [Abstract] | ||
Security deposits | $ 2,870 | $ 2,420 |
Prepayments | 8,336 | 11,373 |
Prepayments and deposits | 11,206 | 13,793 |
Non-current assets [Abstract] | ||
Security deposits | 10,247 | 0 |
Total prepayments and other assets | $ 21,453 | $ 13,793 |
Lease liabilities (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Jun. 30, 2023 |
|
Current liabilities [abstract] | ||
Lease liability | $ 205 | $ 192 |
Non-current liabilities [abstract] | ||
Lease liability | 1,512 | 1,256 |
Total lease liabilities | $ 1,717 | $ 1,448 |
Prince George, British Columbia, Canada [Member] | Lease liabilities [member] | ||
Non-current liabilities [abstract] | ||
Lease term | 30 years | |
Sydney, Australia [Member] | Lease liabilities [member] | ||
Non-current liabilities [abstract] | ||
Lease term | 3 years | |
Vancouver, British Columbia, Canada [Member] | Lease liabilities [member] | ||
Non-current liabilities [abstract] | ||
Lease term | 5 years |
Provisions (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Jun. 30, 2023 |
|
Current liabilities [Abstract] | ||
Non-refundable sales tax and other provisions | $ 11,498 | $ 6,172 |
Total Provisions | $ 11,498 | $ 6,172 |
CANADA [Member] | ||
Current liabilities [Abstract] | ||
Percentage of GST required to remit | 5.00% | |
Percentage of GST on exported services | 0.00% |
Issued capital, Ordinary shares (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Jun. 30, 2023 |
---|---|---|
Ordinary share capital [abstract] | ||
Ordinary shares - fully paid and unrestricted | $ 1,327,668 | $ 965,857 |
Issued Capital [Member] | ||
Ordinary share capital [abstract] | ||
Ordinary shares - fully paid and unrestricted (in shares) | 138,411,731 | 64,747,477 |
Ordinary shares - fully paid and unrestricted | $ 1,327,668 | $ 965,857 |
Issued capital, Movements in Ordinary Share Capital (Details) $ in Thousands |
9 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
shares
| |
Issued capital [Abstract] | |
Opening balance | $ 965,857 |
Closing balance | $ 1,327,668 |
Issued Capital [Member] | |
Number of shares [Abstract] | |
Opening balance (in shares) | shares | 64,747,477 |
Shares issued under Committed Equity Facility (in shares) | shares | 12,887,814 |
Shares issued under the ATM Facility (in shares) | shares | 60,570,797 |
Share based payment - third party issuance (in shares) | shares | 101,084 |
Share based payment - vested shares (in shares) | shares | 104,559 |
Capital raise costs, net of tax (in shares) | shares | 0 |
Closing balance (in shares) | shares | 138,411,731 |
Issued capital [Abstract] | |
Opening balance | $ 965,857 |
Shares issued under Committed Equity Facility | 51,417 |
Shares issued under the ATM Facility | 318,468 |
Share based payment - third party issuance | 302 |
Share based payment - vested shares | 118 |
Capital raise costs, net of tax | (8,494) |
Closing balance | $ 1,327,668 |
Earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Earnings per share [Abstract] | ||||
Anti-dilutive effect of diluted earnings per share (in shares) | 416,733 | |||
Profit/(loss) after income tax | $ 8,638 | $ (3,053) | $ (1,889) | $ (164,947) |
Weighted average number of ordinary shares used in calculating basic earnings per share (in shares) | 104,496,782 | 53,559,687 | 81,456,256 | 53,203,472 |
Weighted average number of ordinary shares used in calculating diluted earnings per share (in shares) | 112,195,908 | 53,559,687 | 81,456,256 | 53,203,472 |
Basic earnings per share (in dollars per share) | $ 0.0827 | $ (0.057) | $ (0.0232) | $ (3.1003) |
Diluted earnings per share (in dollars per share) | $ 0.077 | $ (0.057) | $ (0.0232) | $ (3.1003) |
Commitments (Details) |
9 Months Ended | |
---|---|---|
Mar. 31, 2024
USD ($)
Miners
|
Jun. 30, 2023
USD ($)
|
|
Committed Amounts Payable [Abstract] | ||
Commitments | $ 65,856,000 | $ 7,481,000 |
Purchase price of Bitmain T21 miners per Terahash | 14 | |
Miner purchase option with Bitmain [Member] | Mining assets [member] | ||
Committed Amounts Payable [Abstract] | ||
Additional Bitmain miners purchased | Miners | 48,000 | |
Increase in Hashrate operating capacity of Bitmain T21 miners | 9.1 | |
Purchase price of Bitmain T21 miners per Terahash | 14 | |
Proceeds from options exercised | $ 127,680,000 | |
Amounts Payable Within 12 Months of Balance Date [Member] | ||
Committed Amounts Payable [Abstract] | ||
Commitments | 65,856,000 | 7,481,000 |
Amounts Payable After 12 Months of Balance Date [Member] | ||
Committed Amounts Payable [Abstract] | ||
Commitments | $ 0 | $ 0 |
Related party transactions (Details) - USD ($) |
9 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2024 |
Jun. 30, 2023 |
|
Outstanding balances for related party transactions [abstract] | ||
Transactions with related parties | $ 0 | $ 0 |
Trade receivables from related parties | 0 | 0 |
Trade payables to related parties | 0 | 0 |
Loans from related parties | 0 | 0 |
Loans to related parties | $ 0 | $ 0 |
1 Year Iris Energy Chart |
1 Month Iris Energy Chart |
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