Iris Energy Limited (IREN) shares are trading higher on Friday, following the release of the company’s September investor update. The report highlights significant progress in the company’s operations, leading to increased revenue and improved efficiency.
Iris Energy mined 347 Bitcoin in September, a testament to their growing mining capacity. The company’s installed capacity now stands at 21 EH/s, and they anticipate reaching 31 EH/s by the end of 2024. This expansion is reflected in their revenue, which surged 42% to $21.4 million for the month.
One of the key drivers behind this positive performance is the company’s focus on reducing electricity costs. Iris Energy reported a 21% decrease in electricity cost per Bitcoin compared to the previous month, demonstrating their commitment to optimizing operations and maximizing profitability.
The company also expanded its Artificial Intelligence (AI) Cloud Services segment, purchasing an additional 1,080 NVIDIA H200 GPUs. This acquisition brings their total GPU fleet to 1,896, signaling their dedication to diversifying revenue streams and capitalizing on the growing demand for AI computing power.
Analysts are generally optimistic about Iris Energy’s future. Cantor Fitzgerald analyst Brett Knoblauch maintained an Overweight rating on the stock and a $20 price target. The average 12-month price target among Wall Street analysts stands at $16.5, with the highest target reaching $26 and the lowest at $9.50. Of all analysts covering Iris Energy, 16 hold positive ratings, demonstrating a strong belief in the company’s potential.
While stock market fluctuations are inevitable, the average analyst price target suggests potential for further upside in Iris Energy’s stock price. The company’s impressive growth in revenue and efficiency, coupled with its expansion into AI Cloud Services, creates a compelling case for investors to consider adding IREN to their portfolios.
