Iris Energy buys 7000 new Bitmain T21 Bitcoin miners

[cygan]

according to this press release ^[1], Iris Energy has announced a massive expansion of its mining capacity. the company has acquired 7000 of Bitmain's latest T21 asic miners, which were unveiled just a few days ago and are scheduled for delivery in the first quarter of 2024.

with this purchase, Iris Energy is driving the expansion of its mining operations. in particular, its childress (texas) facility is targeting an expansion of 80 megawatts with the goal of reaching a total capacity of 10 eh/s by the second quarter of 2024. this step is part of a larger plan that includes the establishment of additional data centers with a total capacity of 600 mw

this deal with Bitmain is not unique in the industry. other major companies have also made or at least announced significant investments in mining hardware. this development shows that major players in the Bitcoin mining sector continue to have positive profit expectations despite the upcoming Bitcoin halving next year

[1]: Iris Energy Increases Mining Capacity to 8.3 EH/s

[1714330194]

1714330194

[FP91G]

Bitmain Antminer T21 (190Th)
SHA-256   190Th/s±5%   3610W±5%   0.019j/Gh
https://www.asicminervalue.com/miners/bitmain/antminer-t21-190th

Code:

Iris Energy is acquiring 7,000 new-generation T21 miners from Bitmain Technologies Delaware Limited for a purchase price of $14/TH ($18.6 million).

The purchase price for ASIC for them is 2657 dollars, and if they buy ASIC for half an hour in February 2024, then this is a good deal.
With such volumes of purchases after halving, Bitmain series 19 ASICs will be unprofitable, and its older series will be useless for mining.

[mikeywith]

this development shows that major players in the Bitcoin mining sector continue to have positive profit expectations despite the upcoming Bitcoin halving next year

The way I see it, it only shows how easy it is to gamble with money that isn't yours  (investors' money), back in the day when the Chinese miners were dominating, you could always sense some rational movements in the hashrate, probably because it was the miner's own money, nowadays where the U.S is the largest mining hub, things just don't make much sense anymore.

All these large corps are betting on the price of BTC to hit the roof after the halving, if it doesn't, many of them will be in deep shit.

T21 burns roughly 87KwH a day, for 6 cents rate that is 5.2$ paid daily, as it stands right now it makes $14.5 so $9.3 a day in profit, so without the halving the ROI on these is 280 days, for the 4 cents miners it's $11 profit a day or 240 days ROI.

If the halving hits and BTC isn't at 80k, then this profit will fall right away, if BTC stays below 40k for long enough, the ROI on these gears could easily extend to over 500 days which more so like never.

Of course, the other bet besides the price is that "others will fall before us", and ya that's a bet you can make if you have <4 cents, maybe 2-3 cents all-in including all operational costs and 0% failure rate, but it seems like all these big boys are betting on each other's failure, the math states that it's not possible for all of them so survive the halving, so who is going to fall first? we will find out when the time comes, Q3 of next year will be fun to watch.

[FP91G]

Why do you think that the new Mayers are at a loss?
From the cost of 8-12 thousand dollars per bitcoin on ASICs 17-19 series of Bitmain. After the halving, the cost of Bitcoin mining will increase, but mining companies will also use the new 21 series of ASICs. I think that with this option their costs will increase by 50-70% and the companies will make good profits.
https://bitcointalk.org/index.php?topic=5473513.0

[kano]

Well you also shouldn't ignore the usual fact with Bitmain and others that you are paying WELL in advance and not hashing anything at all until after you get them ... and nobody knows or can ever guess what the NetDiff or BTC$ price will be that far in the future ...

[stompix]

Why do you think that the new Mayers are at a loss?
From the cost of 8-12 thousand dollars per bitcoin on ASICs 17-19 series of Bitmain. After the halving, the cost of Bitcoin mining will increase,

Oh god! It's not the cost that will increase , it's the revenue per th/s that goes down!
It will cost you the same to run your machine, it's just that your machine will be earning less.
And don't even get me started on the math, because if you earn 100$ for $80 spent, a doubling in cost makes you lose $60, a having in revenue makes you lose $30, and this is just raw example not accounting caring for running and fixed costs, taxes, deductions and so on.

The way I see it, it only shows how easy it is to gamble with money that isn't yours  (investors' money), back in the day when the Chinese miners were dominating, you could always sense some rational movements in the hashrate, probably because it was the miner's own money, nowadays where the U.S is the largest mining hub, things just don't make much sense anymore.

I tried to make something out of their release but no, too much of a headacke:
https://irisenergy.gcs-web.com/news-releases/news-release-details/iris-energy-announces-monthly-investor-update-august-2023
Negative realized electricity costs of ~US$0.08/kWh3
https://irisenergy.gcs-web.com/news-releases/news-release-details/iris-energy-announces-monthly-investor-update-september-2023
1.4c power at Childress since inception³
Company was effectively paid ~$28k per Bitcoin to take power at Childress and generated a further ~$28k per Bitcoin in mining revenue (i.e. ~$56k mining profit4 per Bitcoin at Childress)⁴

3 The Company’s Childress site generated ~US$948k of power sales in September (~36 Bitcoin equivalent), which represents unaudited power credits (primarily driven by voluntary curtailment) under hedge contracts (based on current meter data and ERCOT real-time prices) and are reflected within the electricity costs. Figures are based on current internal estimates and exclude REC purchases.
4 Reflects average all-in power price achieved at Childress between May 2023 and August 2023 (based on monthly electricity invoices received as well as internal estimates). Excludes April 2023 as this represented a partial period (reflecting initial ramp-up in operations). Excludes costs of purchasing RECs. Includes basis costs, ERCOT, retail and network fees, net of estimated power credits. There is no guarantee similar power credits will be achieved at Childress in the future (or at all). Includes internally estimated value of current enrolment in ERCOT’s Emergency Response Service program (“ERS”) for the period between June 2023 and August 2023 (based on actual observed ERS clearing prices during the period). Childress has not yet received any ERS benefit and there is no guarantee it may receive any benefit (e.g. due to unsuccessful participation) and ERCOT has not confirmed the value of the ERS benefit under the current enrolment (if any). Includes internally estimated value from load reduction to reduce four coincident peak (“4CP”) transmission network charges. Childress is not eligible to receive the 4CP benefit in its first calendar year of operations (2023), however it is currently anticipated Childress may be eligible to receive the benefit from the start of 2024. The internally estimated value of the benefit is based on actual 4CP peak demand at Childress between June 2023 and August 2023 and internally estimated 4CP peak demand for September 2023. Childress has not yet received any 4CP benefit and there is no guarantee it will receive any benefit (e.g. due to unsuccessful participation) and AEP has not confirmed the value of any 4CP benefit to date (if any). The actual all-in-power price achieved at Childress
 may differ materially in the future, including due to energy market volatility and seasonal factors (noting the site has only operated since April 2023).

Like yeah, free cookies for anyone who will not bang his head agaisnt the wall after reading this

But , they do seem to have enough money for

C$94,000 awarded to 11 non-profit organizations
C$59,000 awarded to 10 non-profit organizations

Pretty easy to mine and be generous, when it's raining free money!

[FP91G]

Why do you think that the new Mayers are at a loss?
From the cost of 8-12 thousand dollars per bitcoin on ASICs 17-19 series of Bitmain. After the halving, the cost of Bitcoin mining will increase,

Oh god! It's not the cost that will increase , it's the revenue per th/s that goes down!
It will cost you the same to run your machine, it's just that your machine will be earning less.
And don't even get me started on the math, because if you earn 100$ for $80 spent, a doubling in cost makes you lose $60, a having in revenue makes you lose $30, and this is just raw example not accounting caring for running and fixed costs, taxes, deductions and so on.

I agree with you that due to the large increase in hashrate, profit will decrease every week.
And many more companies have not started supplying new ASICs.
https://minerstat.com/coin/BTC/network-hashrate?
But it is probably easier for the average observer to observe the mining costs of large companies, which they publish in quarterly reports.

[cygan]

the company today published a monthly investor update for december
a total of 399 BTCitcoin were mined in the last month of the year, which makes 4123BTC in the entire year 2023
in addition, the expansion to 10 eh/s was fully funded, the commissioning of NVIDIA h100 gpus for generative ai is underway and the average operating hashrate amounted to 5576 ph/s
further information can be found in the following link: https://irisenergy.gcs-web.com/news-releases/news-release-details/iris-energy-announces-monthly-investor-update-december-2023