Summary:
Iris Energy Ltd shares rose after strong Q1 financial results.
Reported Bitcoin mining revenue of $49.6 million.
28% increase in AI Cloud Services revenue to $3.2 million.
Mined 813 bitcoins and ended the quarter with $98.6 million in cash.
Analysts raised price targets following the positive results.
Iris Energy Highlights Q1 Success
Iris Energy Ltd (NASDAQ:IREN) shares are experiencing a significant boost, trading higher on Wednesday following the release of the company’s first-quarter financial results. Analysts have responded positively, raising their price targets in light of the solid performance.
Key Financial Metrics
In the latest quarter, Iris reported Bitcoin (BTC) mining revenue of $49.6 million. Additionally, the company saw a 28% increase in AI Cloud Services revenue, reaching $3.2 million.
- Adjusted EBITDA stood at $2.6 million.
- The company successfully mined 813 bitcoins during the period.
- Iris ended the quarter with $98.6 million in cash and cash equivalents, having $182.4 million in cash as of October 31.
Leadership Insights
Co-founder and co-CEO, Daniel Roberts, expressed satisfaction with the quarterly results, emphasizing their commitment to low-cost Bitcoin mining, operational cash flows, and shareholder returns. He noted, "We are just weeks away from achieving our 31 EH/s milestone and are excited to announce the acceleration of our growth trajectory to 50 EH/s in H1 2025, moving it up from H2 2025."
Mining Capacity and Costs
As of the latest report, Iris had 21 EH/s installed and is on track to reach 31 EH/s by December. The company's all-in cash cost per Bitcoin is approximately $29,000, while Bitcoin was trading around $94,000 at the time of publication.
Analyst Reactions
Following these results, analysts have updated their ratings:
- Canaccord Genuity's Joseph Vafi maintained a Buy rating, increasing the price target from $15 to $17.
- HC Wainwright & Co.'s Mike Colonnese also maintained a Buy rating, raising the target from $13 to $16.
- Needham's John Todaro reiterated a Hold rating.
Market Performance
As a result of these developments, Iris Energy shares rose by 9.52%, reaching $10.47 at the time of reporting, according to Benzinga Pro.
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