NASDAQ-listed Bitcoin mining firm Iris Energy (IREN) recently announced its intention to increase its hash rate capacity by 63%, reaching 9.1 exahashes per second (EH/s) by early 2024. The company is in the process of constructing 80MW of data center space in Childress, Texas, to complete phase 1 of its ambitious 600MW site. Iris’s future approach focuses on data center construction, while maintaining flexibility regarding miner purchases, which depends on funding and market conditions.
This announcement has caused the company’s shares to surge 21%, going from $3.55 to $4.14, signifying a 247% increase in value year to date. Presently, Iris’s hash rate capacity stands at 5.6 EH/s, which aligns with the company’s February projections intending to triple its capacity from a mere 2.0 EH/s. However, in November, the mining company was compelled to reduce its capacity by 3.6 EH/s as a result of shutting off multiple machines that served as collateral for $103 million in loans.
The lender, who is still pursuing remedies, recently sought to guarantee that any profits generated by Iris through additional Bitcoin mining operations are utilized as collateral to secure its lending facilities. Iris, however, believes that these claims are without merit.
As the company awaits “additional long-lead items” for phase 2 of its infrastructure buildout, it is expected to unlock approximately 13.6 EH/s1 of data center capacity. Iris Energy, with its access to affordable, renewable energy sources and extensive data center capabilities, is contemplating venturing into “energy-intensive compute applications,” such as artificial intelligence (AI). According to the firm, it had devoted significant time exploring this strategy 3-4 years ago, even entering into a memorandum of understanding with Dell Technologies in March 2020. Recent dialogs with market participants have further validated previous efforts, leading the company to consider expanding into the sector by utilizing its four existing operating sites.
In addition to the Childress location, Iris Energy also operates three data centers in British Columbia and another in Childress, Texas, where its current expansion efforts are centered.
Other mining enterprises, such as Blockstream and CleanSpark, have also announced substantial investment in mining capacity this year. This follows Bitcoin’s price rebound from its post-FTX lows, indicating a growing interest in the blockchain industry and prompting companies to explore new opportunities and expand their operations to meet the growing demand.
Source: Decrypt
