The price of Bitcoin (CCC:BTC-USD) recently dropped below $60,000 for the first time since Oct. 31. Therefore, it is certainly an interesting time for Australian Bitcoin miner Iris Energy (NASDAQ:IREN) to make its public debut. Shares of IREN stock are set to open at $28, above the expected price range of $25-$27.
Iris Energy has high aspirations. InvestorPlace’s Chris MacDonald reported that Iris plans on being one of the largest miners in terms of hash rate, with a target of roughly 10% of the entire hash rate of the Bitcoin network.
Should you consider IREN stock as a durable investment? What differentiates Iris Energy from other Bitcoin miners? Let’s dive into some key facts surrounding the market’s latest participant.
IREN Stock: What Investors Need to Know
- Iris Energy raised $231.5 million in its initial public offering (IPO).
- Furthermore, the Bitcoin miner plans on selling 8.26 million shares during this debut.
- At $28 a share, this pricing implies a market capitalization of $1.55 billion.
- Iris Energy differentiates itself from other Bitcoin miners by selling Bitcoin after mining instead of holding it. The company does not have any Bitcoin on its balance sheet as of Sept. 30.
- Additionally, Iris Energy reports that it strives to rely on renewables, like water, to power its Bitcoin mining operations. Iris Energy states in their prospectus that “Our strategy is based upon entering markets that have a high penetration of renewables and where our operations can help provide benefits to the local energy markets and communities and establish a social license in the regions in which we operate.”
- For example, Iris’ operations in British Columbia are connected to the BC Hydro Network. The electricity powering the network is 98% sourced from clean or renewable resources.
- Impressively, Iris Energy has signed large pre-orders for the future stocks of Bitmain’s AntMiners S19 series to expand its mining capabilities.
- The company reported a net loss of $57.6 million in the year ending June 30. However, Bitcoin revenue in the same period was $7.5 million.
- Furthermore, the company reported $85.7 million in cash and cash equivalents as of Sept. 30.
- Iris Energy states that the company could possibly diversify its revenue stream in the future by engaging in “green hydrogen generation, storage, and/or fueling infrastructure, and high-performance computing services.”
- Risks to Iris Energy include “climate change, severe weather conditions and natural and man- made disasters.” Accordingly, these risks could result in power supply disruptions and system failures.
On the date of publication, Eddie Pan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.