Analyst Mike Colonnese from H.C. Wainwright reiterated a Buy rating on Iris Energy (IREN – Research Report) and keeping the price target at $10.00.
Mike Colonnese has given his Buy rating due to a combination of factors including Iris Energy’s recent announcement that they are fully funded to expand their Bitcoin mining operations to 20 EH/s in 2024. This expansion is supported by a solid financial position, evidenced by a cash balance of $301 million and no debt, following successful equity fundraising. The market reacted positively to this news, signaling confidence in the company’s future growth potential and its ability to enhance infrastructure and acquire necessary mining rigs. Colonnese also notes the increased operational transparency that will come with Iris Energy’s shift to quarterly financial reporting, beginning March 2024.
Furthermore, Colonnese’s optimism is bolstered by the company’s progress toward their near-term goal of reaching 10 EH/s by the first half of 2024, with 8 EH/s already operational. With the anticipated full build-out and energizing of their facilities, coupled with the planned exercise of additional purchase options for mining equipment, Iris Energy is on track for a significant increase in mining capacity. This expansion is expected to considerably boost the company’s gross mining profit. Additionally, Iris Energy’s venture into AI Cloud Services, leveraging NVIDIA GPUs, is predicted to make a substantial contribution to gross profits, further underlining the company’s diverse and growing revenue streams.
Colonnese covers the Financial sector, focusing on stocks such as Cleanspark, Iris Energy, and Riot Platforms. According to TipRanks, Colonnese has an average return of 76.0% and a 60.34% success rate on recommended stocks.
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Iris Energy (IREN) Company Description:
Iris Energy Ltd is a bitcoin mining company. It builds, owns, and operates data centers and electrical infrastructure for the mining of Bitcoin primarily powered by renewable energy. The company’s mining operations generate revenue by earning Bitcoin through a combination of block rewards and transaction fees from the operation of its specialized computers called Application-specific Integrated Circuits and exchanging these Bitcoin for currencies such as USD or CAD on a daily basis.
