Iris Energy Plans to Go for $100M US IPO on Nasdaq, Taps JPMorgan and Citi

UTC by Tolu Ajiboye · 3 min read
Iris Energy Plans to Go for $100M US IPO on Nasdaq, Taps JPMorgan and Citi
Photo: Depositphotos

Along with its IPO filing, Iris Energy submitted a prospectus that revealed a 1,177% increase in revenue for the September 30 quarter.

Iris Energy, an Australian Bitcoin mining company, is preparing for its upcoming initial public offering (IPO) and Nasdaq listing. For this, Iris Energy is enlisting the help of leading banks JPMorgan, Canaccord Genuity, and Citi as joint managers. Furthermore, the Sydney-based company is also hiring independent investment banks Macquarie Capital and Cowen to help generate interest. Details of the IPO were in a recent regulatory filing with the Securities and Exchange Commission (SEC).

Iris Energy plans to raise up to $100 million through its IPO. Furthermore, the company intends to list its ordinary shares on the Nasdaq, under the ticker symbol ‘IREN’. Although specific pricing terms remain undisclosed, media reports state that the shares will be available to trade later this year.

Iris Energy has been in the business of Bitcoin mining since 2019. Co-led by brothers Dan and Will Roberts, the company liquidates everything it mines and does not hold the digital currency on its balance sheet. Back in August, Iris Energy scored itself a valuation of over $1.5 billion in a convertible notes deal.

According to Iris, the market valuation for Bitcoin mining in 2021 is a staggering $16 billion. Bitcoin miners gain access to the digital asset by channeling vast amounts of computing power to solving complex mathematical problems. The requisite computing power uses up a lot of energy which also increases with the price of BTC. However, Iris Energy is emphasizing its use of renewable energy for mining. In fact, the company has been meeting with prospective investors and enlisted the services of an adviser concerning this.

Iris Energy Lodges Prospectus with SEC for IPO Listing

Iris Energy submitted a prospectus to the SEC, which gave insight into the company’s financials on Tuesday. For the three months that ended on September 30, Iris Energy generated $10.4 million (or 14.3 million Australian dollars) in revenue. This represents a 1,177% increase from the previous corresponding period.

Also, Iris Energy hit an EBITDA profitability of $6 million banked in the first quarter. However, the Australian mining company reported a net loss of about $678.7 million for the quarter, due to a number of factors. These included losses on embedded derivatives held at fair value and accelerated payments based on share expenses. In addition, Iris Energy also incurred interest expenses on convertible notes, on a net profit/loss after-tax basis.

In January last year, Iris Energy acquired its first site in British Columbia, Canada. The site, connected to the British Columbia Hydro and Power Authority electricity transmission network, has approximately 30 megawatts of capacity. Furthermore, the electricity sourced from the aforementioned BCHPA network comprised up to 98% clean or renewable resources. The operating hashrate capacity of Iris’ British Columbia stands at approximately 0.7 EH/s as of October 1, 2021.

Iris Energy is just one of several crypto-oriented companies taking advantage of the rising popularity of digital currencies and assets.

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