Iris Energy Bags $144M Net Loss in Q2 of Fiscal Year 2023

Bitcoin (BTC) mining company Iris Energy released its earnings report which revealed a $144 million net loss after income tax which was contributed by a $105.2 million non-cash impairment charge and loss allowance for receivables.

According to the report which is its financial result for the three and six months ended December 31, 2022, the firm ended the quarter with no debt. 

Additionally, the value of the non-cash impairment charge has a percentage that is related to ‘limited recourse equipment financing SPVs and the residual amount primarily relating to mining hardware’. As per the published results, Iris Energy ended the quarter with a revenue of $13.8 million as against $16.2 million which was recorded in the Q1 of the company’s fiscal year 2023. 

While this is a decrease from its previous result, it is a significant upgrade from the $13.3 million predicted by analysts. Iris Energy believes that the decrease in revenue was induced by the reduction in the amount of mined BTC together with the price plunge. In Q2 of the company’s fiscal year 2023, there were only about 722 mined Bitcoin which when compared to Q1, is more than a 7% decrease in the quantity mined. 

It is however noteworthy that the 780 BTC mined in Q1 was a function of a higher global hashrate at the time.

Iris Energy to Triple Hashrate

On Wednesday, the mining giant announced plans to install thousands of new rigs as part of its strategy to triple its mining capacity.

Already, it has increased its self-mining capacity from 2.0 exahashes per second (EH/s) to 5.5 EH/s when it purchased Bitmain Antminer S19j Pro ASIC miners for an additional 4.4 EH/s. This was done in response to the $103 million default claim notice that Iris Energy received from its lender Bitmain Technologies.

Daniel Roberts, Co-Founder and Co-Chief Executive Officer of Iris Energy attested to the fact all of these results were a function of the turbulence encountered in 2022.

“2022 was a challenging year for the digital assets industry as well as broader equity markets,” and “Looking forward, we believe we are well positioned to capitalize as markets continue to improve.”