Iris Energy to Ramp Up Capacity in 2024 Following $22M Spend on Bitmain Rigs

Jimmy Aki
Last updated: | 2 min read
Iris Energy
Source: AdobeStock / Photocreo Bednarek

Renewable Bitcoin mining company Iris Energy has revealed the acquisition of 1.6 EH/s of Bitmain T21 miners, increasing its self-mining capacity to 10 EH/s.

In a press release on December 15, the company disclosed plans to acquire 8,380 new-generation T21 miners from Bitmain Technologies Delaware Limited at $14/TH ($22.3 million).

Prior to the latest purchase, Iris Energy had initially ordered Bitmain S21 miners to generate 1.4EH/s of mining output.

These S21 and T21 miners, scheduled for shipping in Q2 2024, are expected to enhance the overall fleet efficiency from 29.5 J/TH to 24.8 J/TH upon installation.

Meanwhile, Iris Energy’s 80MW data center expansion in Childress is progressing. It is set to deliver incrementally from January 2024 to Q2 2024 and support the operating hashrate growth from 5.6 EH/s to 10 EH/s.

Early works and procurement efforts for an additional 100MW of data centers at Childress are also ongoing, backed by an immediate 500MW power availability on-site.

This recent acquisition follows the June 20 announcement of Iris Energy advancing the construction of 80MW of data centers for Phase 1 (first 100MW) at its 600MW Childress site.

These additional 4 x 20MW data centers are expected to boost the company’s potential operating capacity by approximately 63%, reaching 9.1 EH/s from the current 5.6 EH/s, with completion targeted for early 2024.

Ongoing procurement efforts also include long-lead items for Childress Phase 2 (second 100MW), which are projected to unlock around 13.6 EH/s of data center capacity.

However, the company’s immediate focus centers on data center construction, with the timing of miner purchases contingent on funding and market conditions.

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Iris Energy boasts robust capitalization, holding approximately $64 million in cash, no debt, and generating positive operating cashflows from its existing 5.6 EH/s, with potential equity facility options.

While maintaining its focus on Bitcoin mining, the company previously highlighted its renewed interest in high-performance computing (HPC) data center strategy.

This strategic shift was initially explored around 3-4 years ago, marked by a memorandum of understanding with Dell Technologies in March 2020.

To diversify its focus beyond Bitcoin mining into generative artificial intelligence (AI), Iris Energy invested $10 million to acquire 248 advanced Nvidia H100 Graphics Processing Units (GPUs) on August 29. These GPUs will be deployed for cloud computing opportunities.

The mining company operates in regions across North America with abundant renewable energy, including Mackenzie, Canal Flats, Prince George in Canada’s British Columbia, and its Childress site in Texas.