Bitcoin miner Iris Energy posts $144 million net loss

Quick Take

  • Iris Energy posted a $144 million net loss on revenue of $13.8 million for the quarter ending in December.
  • The company’s stock rose 67% before market close on Wednesday.
  • It announced on Monday plans to almost triple hashrate after buying 4.4 EH/s in machines. 

Iris Energy posted a net loss of $144 million,  mainly due to a $105.2 million non-cash impairment charge in part related to its equipment financing, and said it mined fewer bitcoin in the quarter ending in December. 

The company posted revenue of $13.8 million, topping the $13.3 million average estimate of analysts compiled by FactSet. 

Shares of Iris Energy were lower in post-market trading after closing up by 67% during the regular session. 

“2022 was a challenging year for the digital assets industry as well as broader equity markets,” said Daniel Roberts, co-founder and co-CEO of Iris Energy. "Looking forward, we believe we are well positioned to capitalize as markets continue to improve."

The company recently announced plans to scale its hashrate back up after unplugging about 3.6 EH/s worth of machines in November in response to a default notice from a lender on more than $100 million in loans.

After buying 4.4 EH/s in machines using Bitmain prepayments, it now plans to grow its hashrate to 5.5 EH/s as they are installed "over the coming months."

Iris is debt free after extinguishing its loans at the end of last year. The company is also considering selling any surplus miners over 5.5 EH/s of self-mining capacity "to re-invest in growth initiatives and/or corporate purposes."

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.