IREN to increase AI Cloud Services to 10% of earnings

Purchase of additional 1,080 NVIDIA H200 GPUs

SYDNEY, Sept. 16, 2024 (GLOBE NEWSWIRE) -- Iris Energy Limited (NASDAQ: IREN) (together with its subsidiaries, “IREN”) today announced the purchase of 1,080 latest-generation NVIDIA H200 GPUs to support its growing AI Cloud Services business.

“We’re seeing strong levels of demand for new-generation GPUs. Ongoing discussions with NVIDIA and participation in their Cloud Partner Program gives us added confidence in deploying this new capacity,” said Daniel Roberts, Co-Founder and Co-CEO of IREN.

“This purchase is estimated to increase the AI Cloud Services proportion of IREN earnings to ~10% by year-end, a proportion we expect to continue growing through 2025.” ¹

Expansion of AI Cloud Services

IREN is purchasing 1,080 of the latest-generation NVIDIA H200 GPUs for $43.9m², with delivery and commissioning expected during 4Q 2024.

This purchase increases IREN’s overall GPU fleet to:

• 1,896 NVIDIA H100 & H200 GPUs
• $32m of estimated annualized hardware profit³

Expansion of Bitcoin Mining

Current IREN installed capacity of 18.8 EH/s (16.3 J/TH efficiency), with expansion on track to 20 EH/s (this month) and 30 EH/s (4Q 2024).

Based on 30 EH/s (15 J/TH efficiency):

• $20k electricity cost per Bitcoin mined³
• $31k all-in cash cost per Bitcoin mined⁴

Business Mix

AI Cloud Services estimated to contribute ~10% to run-rate earnings (7 months ago: nil)¹ from IREN’s 510MW data center portfolio by end of 2024, a proportion expected to continue to grow through 2025.

Illustrative economics3 Annualized exit run-rate (end of 2024)	AI Cloud Services	Bitcoin Mining
Revenue	$33m	$460m
Electricity Costs	($1m)	($156m)
Hardware Profit	$32m	$304m
% Proportion	~10%	~90%

Assumptions and Notes

1. Refers to Illustrative Annualized Hardware Profit, as defined in footnote 3 below. See Forward-Looking Statements disclaimer below, including Non-IFRS Financial Measures.
   
2. Includes servers and ancillary equipment such as InfiniBand, racks, cabling and labor.
3. Illustrative Annualized Hardware Profit = illustrative revenue less assumed electricity costs (excludes all other site, overhead and Renewable Energy Certificate (“REC”) costs). Calculations assume hardware operates at 100% uptime. AI Cloud Services calculations assume 1.25kW power draw per GPU, $0.045/kWh electricity costs and lower end of a $2.00 - $2.50 per GPU hour revenue assumption range. Bitcoin mining calculations assume $60,000 (Bitcoin price), 662 EH/s (global hashrate), 3.125 BTC (block reward), 0.1 BTC (transaction fees), 0.15% (pool fees), 468MW (power consumption), $0.038/kWh electricity costs (4.5c/kWh BC, 3.5c/kWh Childress – note August 2024 electricity price at Childress of 3.1c/kWh following transition to spot pricing).
4. Estimated all-in cash costs per Bitcoin mined at 30 EH/s include electricity costs (as noted in footnote 3 above) and indicative all other opex (including all corporate overheads) of ~$80m per annum.

Forward-Looking Statements