Iris Energy narrows FY23 net loss to $267.2m, chief Daniel Roberts warns global financial system is heading for collapse
“Actually, I’d say a collapse has already happened. For 50 years we’ve said we’re great property and sharemarket investors, but the issue is the money supply has grown 8 per cent year-on-year and these assets are just keeping pace with the amount of new money in the economy, so all you’re really seeing is a crash, but a crash higher in asset prices.”
At lunchtime on Thursday, the world’s largest cryptocurrency widely regarded as a risk and liquidity bellwether changed hands for $US26,280 to mark a 9.9 per cent fall over the past month.
Mixed record
Iris floated at $US28 a share at the peak of the cryptocurrency bubble in November 2021, but its valued has since crashed 84.2 per cent. Shares were at $US4.43 on Thursday.
It posted adjusted EBITDA (operating income) of $US1.4 million in financial 2023 after subtracting power bills of $US35.8 million and other cash operating costs of $US38.3 million from bitcoin mining revenue up 21.9 per cent to $US75.5 million in financial 2023.
In November 2022 Iris admitted it had impaired the value of bitcoin mining hardware worth $US105.2 million and by December nervous investors dumped the stock for as little as $1.09. The price action followed bitcoin prices tumbling under $US16,000 and the broader cryptocurrency industry’s hit from the collapse of Sam Bankman-Fried’s FTX Exchange.
Mr Roberts, a Young Rich Lister, said the business could reverse its sharemarket slump by investing in artificial intelligence chips produced by Nvidia and the construction of new wind- or solar-powered bitcoin mining facilities in the US state of Texas, which suffered record heat waves in August.
“We now have a platform ready to scale and continue the growth we’ve delivered over the last 12 months,” Mr Roberts said.
As at June 30, Iris had no debt, and cash on hand of $US69.1 million. Mr Roberts said it could finance growth plans totalling $US626 million via an at the market (ATM) share issuance facility worth $US300 million, and an additional $US200 million in capital raised via share or debt issuance.
