Document and Entity Information
Document and Entity Information | 6 Months Ended |
Dec. 31, 2023 | |
Cover [Abstract] | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2023 |
Current Fiscal Year End Date | --06-30 |
Entity Registrant Name | Iris Energy Ltd |
Entity Central Index Key | 0001878848 |
Entity File Number | 001-41072 |
Entity Address, Address Line One | Level 12 |
Entity Address, Address Line Two | 44 Market Street |
Entity Address, City or Town | Sydney, NSW |
Entity Address, Country | AU |
Entity Address, Postal Zip Code | 2000 |
Unaudited interim consolidated
Unaudited interim consolidated statements of profit or loss and other comprehensive income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue | ||||
Bitcoin mining revenue | $ 42,047 | $ 13,755 | $ 76,444 | $ 29,967 |
Other income | 527 | 0 | 527 | 0 |
Total revenue | 42,574 | 13,755 | 76,971 | 29,967 |
Expenses | ||||
Depreciation | (7,558) | (11,544) | (15,177) | (18,996) |
Electricity charges | (16,746) | (7,362) | (36,111) | (13,937) |
Realized gain on financial asset | 101 | 0 | 3,119 | 0 |
Employee benefits expense | (4,334) | (4,064) | (8,511) | (8,662) |
Share-based payments expense | (5,966) | (3,152) | (11,805) | (6,770) |
Impairment of assets | 0 | (105,172) | 0 | (105,172) |
Reversal of impairment of assets | 108 | 0 | 108 | 0 |
Professional fees | (2,322) | (1,747) | (3,932) | (3,040) |
Other operating expenses | (7,825) | (3,624) | (14,056) | (7,240) |
Gain/(loss) on sale of assets | 5 | (5,137) | 16 | (5,137) |
Unrealized loss on financial asset | (258) | 0 | (258) | 0 |
Operating profit/(loss) | (2,221) | (128,047) | (9,636) | (138,987) |
Finance expense | (30) | (10,350) | (64) | (13,915) |
Interest income | 665 | 257 | 1,378 | 214 |
Foreign exchange loss | (4,707) | (6,225) | (2,449) | (7,176) |
Loss before income tax (expense)/benefit | (6,293) | (144,365) | (10,771) | (159,864) |
Income tax (expense)/benefit | 1,065 | 411 | 244 | (2,030) |
Loss after income tax (expense)/benefit for the period | (5,228) | (143,954) | (10,527) | (161,894) |
Items that may be reclassified subsequently to profit or loss | ||||
Foreign currency translation | 7,584 | 14,112 | 2,002 | (12,115) |
Other comprehensive income/(loss) for the period, net of tax | 7,584 | 14,112 | 2,002 | (12,115) |
Total comprehensive income/(loss) for the period | $ 2,356 | $ (129,842) | $ (8,525) | $ (174,009) |
Basic earnings per share (in dollars per share) | $ (0.072) | $ (2.7146) | $ (0.1502) | $ (3.0529) |
Diluted earnings per share (in dollars per share) | $ (0.072) | $ (2.7146) | $ (0.1502) | $ (3.0529) |
Unaudited interim consolidate_2
Unaudited interim consolidated statements of profit or loss and other comprehensive income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Dec. 31, 2022 | Dec. 31, 2022 | |
Unaudited interim consolidated statements of profit or loss and other comprehensive income [Abstract] | ||
Impairment expenses | $ 15,209 | $ 15,209 |
Unaudited interim consolidate_3
Unaudited interim consolidated statements of financial position - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Current assets | ||
Cash and cash equivalents | $ 90,307 | $ 68,894 |
Other receivables | 5,689 | 6,543 |
Financial assets at fair value through profit or loss | 1,280 | 0 |
Prepayments and other assets | 11,910 | 13,793 |
Total current assets | 109,186 | 89,230 |
Non-current assets | ||
Property, plant and equipment | 264,182 | 241,102 |
Right-of-use assets | 1,269 | 1,374 |
Deferred tax assets | 1,240 | 8 |
Computer hardware prepayments | 30,555 | 68 |
Other assets | 370 | 292 |
Prepayments and other assets | 10,365 | 0 |
Total non-current assets | 307,981 | 242,844 |
Total assets | 417,167 | 332,074 |
Current liabilities | ||
Trade and other payables | 17,503 | 16,644 |
Lease liabilities | 209 | 192 |
Income tax | 680 | 32 |
Employee benefits | 3,561 | 961 |
Provisions | 10,390 | 6,172 |
Total current liabilities | 32,343 | 24,001 |
Non-current liabilities | ||
Lease liabilities | 1,150 | 1,256 |
Deferred tax liabilities | 1,719 | 1,365 |
Employee benefits | 107 | 91 |
Total non-current liabilities | 2,976 | 2,712 |
Total liabilities | 35,319 | 26,713 |
Net assets | 381,848 | 305,361 |
Equity | ||
Issued capital | 1,038,846 | 965,857 |
Reserves | 7,805 | (6,220) |
Accumulated losses | (664,803) | (654,276) |
Total equity | $ 381,848 | $ 305,361 |
Unaudited interim consolidate_4
Unaudited interim consolidated statements of changes in equity - USD ($) $ in Thousands | Total | Issued Capital [Member] | Reserves [Member] | Accumulated Losses [Member] |
Balance at Jun. 30, 2022 | $ 437,362 | $ 926,581 | $ (6,814) | $ (482,405) |
Changes in equity [Abstract] | ||||
Loss after income tax (expense)/benefit for the period | (161,894) | 0 | 0 | (161,894) |
Other comprehensive loss for the period, net of tax | (12,115) | 0 | (12,115) | 0 |
Total comprehensive loss for the period | (174,009) | 0 | (12,115) | (161,894) |
Transactions with owners in their capacity as owners: | ||||
Share-based payments | 6,770 | 0 | 6,770 | 0 |
Balance at Dec. 31, 2022 | 270,123 | 926,581 | (12,159) | (644,299) |
Balance at Jun. 30, 2023 | 305,361 | 965,857 | (6,220) | (654,276) |
Changes in equity [Abstract] | ||||
Loss after income tax (expense)/benefit for the period | (10,527) | 0 | 0 | (10,527) |
Other comprehensive loss for the period, net of tax | 2,002 | 0 | 2,002 | 0 |
Total comprehensive loss for the period | (8,525) | 0 | 2,002 | (10,527) |
Transactions with owners in their capacity as owners: | ||||
Issue of ordinary shares (note 13) | 75,672 | 75,672 | 0 | 0 |
Capital raise costs | (2,801) | (2,801) | 0 | 0 |
Share-based payments | 12,141 | 118 | 12,023 | 0 |
Balance at Dec. 31, 2023 | $ 381,848 | $ 1,038,846 | $ 7,805 | $ (664,803) |
Unaudited interim consolidate_5
Unaudited interim consolidated statements of cash flows - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash Flows from Operating Activities | ||
Receipts from disposal of Bitcoin mined | $ 75,680 | $ 29,945 |
Payments for electricity, suppliers and employees (inclusive of GST) | (55,906) | (32,318) |
Interest received | 1,520 | 254 |
Interest paid | (48) | (4,144) |
Net cash from/(used in) operating activities | 21,246 | (6,263) |
Cash Flows from Investing Activities | ||
Payments for property, plant and equipment net of computer hardware prepayments | (31,389) | (54,653) |
Payments for computer hardware prepayments | (32,626) | (10,003) |
Repayments of loan proceeds | 0 | 2,244 |
Prepayments and deposits | (10,243) | (4,919) |
Proceeds from disposal of property, plant and equipment | 0 | 16,616 |
Net cash used in investing activities | (74,258) | (50,715) |
Cash Flows from Financing Activities | ||
Capital raising costs | (747) | (214) |
Repayment of borrowings | 0 | (9,432) |
Capital raising receipts | 74,994 | 0 |
Payment of borrowing transaction costs | 0 | (200) |
Repayment of lease liabilities | (133) | (108) |
Net cash from/(used in) financing activities | 74,114 | (9,954) |
Net increase/(decrease) in cash and cash equivalents | 21,102 | (66,932) |
Cash and cash equivalents at the beginning of the period | 68,894 | 109,970 |
Effects of exchange rate changes on cash and cash equivalents | 311 | (2,377) |
Cash and cash equivalents at the end of the period | $ 90,307 | $ 40,661 |
General information
General information | 6 Months Ended |
Dec. 31, 2023 | |
General information [Abstract] | |
General information | Note 1. General information These unaudited interim consolidated financial statements cover Iris Energy Limited as a Group consisting of Iris Energy Limited (“Company” or “Parent Entity”) and the entities it controlled at the end of, or during, the period (collectively the “Group”). The Company’s shares trade on the NASDAQ under the ticker symbol “IREN”. Iris Energy Limited is incorporated and domiciled in Australia. Its registered office and principal place of business are: Registered office Principal place of business c/o Pitcher Partners Leve l 12, 44 Mark Level 13, 664 Collins Street Sydney NSW 2000 Docklands VIC 3008 Australia Australia The Group is an owner and operator of institutional-grade, highly efficient proprietary Bitcoin mining data centers powered by renewable energy. The unaudited interim consolidated financial statements were authorized for issue, in accordance with a resolution of Directors, on 15 |
Significant accounting policies
Significant accounting policies | 6 Months Ended |
Dec. 31, 2023 | |
Significant accounting policies [Abstract] | |
Significant accounting policies | Note 2. Significant accounting policies These unaudited interim consolidated financial statements for the periods ended 31 December 2023 have been prepared in accordance with IAS 34 Interim Financial Reporting d for a complete s The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, except for the policies stated below Revenue recognition The Group records revenue from contracts with customers in accordance with IFRS 15, Revenue from Contracts with Customers (“IFRS 15”) as follows: ● Step 1: Identify the contract with a customer; ● Step 2: Identify the performance obligations in the contract; ● Step 3: Determine the transaction price, which is the total consideration provided by the customer; ● Step 4: Allocate the transaction price among the performance obligations in the contract based on their relative fair values; and ● Step 5: Recognize revenue when (or as) the Group satisfies a performance obligation. Bitcoin mining revenue The Group operates data center infrastructure supporting the verification and validation of Bitcoin blockchain transactions in exchange for Bitcoin, referred to as “Bitcoin mining”. The Company has entered into arrangements with mining pools, whereby computing power is directed to the mining pools in exchange for non-cash consideration in the form of Bitcoin. The provision of computing power is the only performance obligation in the contract with the mining pool operators. The Company has the right to decide the point in time and duration for which it will provide hash computation services to the mining pools. The contracts are terminable at any time by either party without substantive compensation to the other party for such termination. Upon termination, the mining pool operator (i.e., the customer) is required to pay the Company any amount due related to previously satisfied performance obligations. Therefore, the Company has determined that the duration of the contract is less than 24 hours and that the contract continuously renews throughout the day. In the mining pools which the Company participated in during the periods, the Company is not directly exposed to the pool’s success in mining blocks. The Company is rewarded in Bitcoin for the hashrate it contributes to these mining pools. The reward for the hashrate contributed by the Company is based on the current network difficulty and global daily revenues from transaction fees, less mining pool fees. The fair value of the non-cash consideration is determined using the quantity of Bitcoin received multiplied by the spot price of the Bitcoin price at the end of the day at the website of Kraken, the trading platform over which we exchange the Bitcoin we have mined (“Kraken”). Management considers the prices quoted on Kraken to be a Level 1 input under IFRS 13 Fair Value Measurement. The Group did not hold any Bitcoin on hand as at 31 December 2023 (31 December 2022: Nil Going concern The Group has determined there is material uncertainty that may cast significant doubt on the Group’s ability to continue as a going concern but has concluded it is appropriate to prepare the consolidated financial statements on a going concern basis which contemplates continuity of normal business activities, the realization of assets and settlement of liabilities in the ordinary course of business. The operating cash flows generated by the Group are inherently linked to several key uncertainties and risks including, but not limited to, volatility associated with the economics of Bitcoin mining and the ability of the Group to execute its business plan. For the six months ended 31 December 2023, the Group incurred a loss after tax of $10,527,000 (31 December 2022: $161,894,000) and net operating cash inflows of $21,246,000 (31 December 2022: outflows of $6,263,000). As at 31 December 2023, the Group had net current assets of $76,843,000 (30 June 2023: net current assets of $65,229,000) and net assets of $381,848,000 (30 June 2023: net assets of $305,361,000). As further background, the Group’s miners are designed specifically to mine Bitcoin and its future success will depend in a large part upon the value of Bitcoin, and any sustained decline in its value could adversely affect the business and results of operations. Specifically, the revenues from Bitcoin mining operations are predominantly based upon two factors: (i) the number of Bitcoin rewards that are successfully mined and (ii) the value of Bitcoin. A decline in the market price of Bitcoin, increases in the difficulty of Bitcoin mining, changes in the regulatory environment, the halving event expected in Q4 FY2024 and/or adverse changes in other inherent risks would significantly negatively impact the Group’s operations. Due to the volatility of the Bitcoin price and the effects of the other aforementioned factors, there can be no guarantee that future mining operations will be profitable. The strategy to mitigate these risks and uncertainties is to try execute a business plan aimed at operational efficiency, revenue growth, improving overall mining profit, managing operating expenses and working capital requirements, maintaining potential capital expenditure optionality, and securing additional financing, as needed, through one or more debt and/or equity capital raisings. The continuing viability of the Group and its ability to continue as a going concern and meet its debts and commitments as they fall due are therefore significantly dependent upon several factors. These factors have been considered in preparing a cash flow forecast over the next 12 months to consider the going concern of the Group. The key assumptions include: ● A base case scenario assuming recent Bitcoin prices and global hashrate, with a reduction in global hashrate following the halving event expected in Q4 FY2024; ● Three operational sites in British Columbia, Canada with installed nameplate capacity of 160MW; 80MW Mackenzie (BC, Canada), 50MW Prince George (BC, Canada), and 30MW Canal Flats (BC, Canada). ● A fourth operational site at Childress, Texas with initial installed nameplate capacity of 20MW incrementally increasing to 100 MW by 30 June 2024. The key assumptions have been stress tested using a range of Bitcoin price and global hashrate scenarios including with respect to the halving event expected in Q4 FY2024 As a result, the Group has concluded there is material uncertainty related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern and, therefore, that it may be unable to realize its assets and discharge its liabilities in the normal course of business. However, the Group considers that it will be successful in the above matters and will have adequate cash reserves to enable it to meet its obligations for at least one year from the date of approval of the consolidated financial statements, and, accordingly, has prepared the consolidated financial statements on a going concern basis. New or amended Accounting Standards and Interpretations adopted The Group has adopted all of the new or amended IFRS and Interpretations as issued by the International Accounting Standards Board (“IASB”) that are mandatory for the current reporting period. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. The Group believes that the impact of recently issued standards or amendments to existing standards that are not yet effective will not have a material impact on the Group’s unaudited interim consolidated financial statements. |
Other income
Other income | 6 Months Ended |
Dec. 31, 2023 | |
Other income [Abstract] | |
Other income | Note 3. Other income Three months ended 31 Dec 2023 Three months ended 31 Dec 2022 Six months ended 31 Dec 2023 Six months ended 31 Dec 2022 $’000 $’000 $’000 $’000 Other income 527 - 527 - Other inco me comprises |
Other operating expenses
Other operating expenses | 6 Months Ended |
Dec. 31, 2023 | |
Other operating expenses [Abstract] | |
Other operating expenses | Note 4. Other operating expenses Three months ended 31 Dec 2023 Three months ended 31 Dec 2022 Six months ended 31 Dec 2023 Six months ended 31 Dec 2022 $'000 $'000 $'000 $'000 Insurance 1,447 1,437 3,099 3,392 Sponsorship and marketing 401 99 694 110 Short term office and equipment rental 92 54 203 155 Site expenses 1,511 889 3,068 1,377 Charitable donations 91 85 233 149 Filing fees 19 19 38 39 Site identification costs - - - 15 Other expenses 787 506 1,336 976 Non-refundable sales tax (See Note 12) 1,372 535 2,966 1,027 Non-refundable provincial sales tax 308 - 622 - Legal expenses 1,797 - 1,797 - Total other operating expenses 7,825 3,624 14,056 7,240 |
Cash and cash equivalents
Cash and cash equivalents | 6 Months Ended |
Dec. 31, 2023 | |
Cash and cash equivalents [Abstract] | |
Cash and cash equivalents | Note 5. Cash and cash equivalents 31 Dec 2023 30 Jun 2023 $'000 $'000 Current assets Cash at bank 90,307 38,657 Cash on deposit - 30,237 Total cash and cash equivalents 90,307 68,894 |
Other receivables
Other receivables | 6 Months Ended |
Dec. 31, 2023 | |
Other receivables [Abstract] | |
Other receivables | Note 6. Other receivables 31 Dec 2023 30 Jun 2023 $'000 $'000 Current assets Share issuance proceeds - 1,581 Trade and other receivables 635 97 Provincial sales tax receivable - 122 Goods and services tax receivable 5,054 4,743 Total other receivables 5,689 6,543 |
Financial asset at fair value t
Financial asset at fair value through profit or loss | 6 Months Ended |
Dec. 31, 2023 | |
Financial asset at fair value through profit or loss [Abstract] | |
Financial asset at fair value through profit or loss | Note 7. Financial asset at fair value through profit or loss 31 Dec 2023 30 Jun 2023 $'000 $'000 Current assets Electricity financial asset 1,280 - Reconciliation Reconciliation of the fair values at the beginning and end of the current and previous financial period are set out below: Opening fair value - - Additions 1,538 - Revaluation decrements (unrealized loss) (258 ) - Closing fair value 1,280 - Power Supply Agreement A subsidiary of the Company entered into a Power Supply Agreement ("PSA") for the procurement of electricity at the Childress site. Under the PSA, the subsidiary has the right to purchase a fixed quantity of electricity in advance at a fixed price however, the subsidiary has no obligation to take physical delivery of electricity purchased. For any unused electricity purchased, the subsidiary sells the unused electricity to the counterparty of the PSA at the prevailing spot price at the time of curtailment. As the PSA meets the definition of a financial instrument under IAS 32, it is accounted for as a financial asset at fair value through Profit and Loss under IFRS 9. Accordingly, the PSA is subsequently remeasured at an estimated fair value each reporting period with the change in the fair value recorded in change in fair value of financial asset in the consolidated statements of operations. As at 31 December 2023, the financial asset comprises the fair value of unused electricity purchased for the forward period to 31 January 2024. On settlement, a realized gain or loss on a financial asset is recognised in profit or loss. The gain or loss is calculated based on the unused quantity of electricity multiplied by prevailing spot price at the time of curtailment less the price paid upon prepayment (fixed costs). As at 31 December 2023, the realized gain for the six-months period is $3.1m (30 June 2023: nil nil |
Computer hardware prepayments
Computer hardware prepayments | 6 Months Ended |
Dec. 31, 2023 | |
Computer hardware prepayments [Abstract] | |
Computer hardware prepayments | Note 8. Computer hardware prepayments 31 Dec 2023 30 Jun 2023 $'000 $'000 Non-current assets Mining hardware prepayments 22,264 68 High-performance computing hardware prepayments 8,291 - Total computer hardware prepayments 30,555 68 Computer hardware prepayments represent payments made by the Group for the purchase of mining hardware and High-performance computing ("HPC") hardware, that are yet to be delivered as at 31 December 2023. These prepayments are in accordance with payment schedules set out in relevant purchase agreements with hardware manufacturers. |
Prepayments and other assets
Prepayments and other assets | 6 Months Ended |
Dec. 31, 2023 | |
Prepayments and other assets [Abstract] | |
Prepayments and other assets | Note 9. Prepayments and other assets 31 Dec 2023 30 Jun 2023 $'000 $'000 Current assets Security deposits 2,905 2,420 Prepayments 9,005 11,373 11,910 13,793 Non-current assets Security deposits 10,365 - Total prepayments and other assets 22,275 13,793 Non-current deposits include connection deposits paid for expansion projects in British Columbia, Canada and West Texas, USA. |
Property, plant and equipment
Property, plant and equipment | 6 Months Ended |
Dec. 31, 2023 | |
Property, plant and equipment [Abstract] | |
Property, plant and equipment | Note 10. Property , plant and equip 31 Dec 2023 30 Jun 2023 $'000 $'000 Non-current assets Land - at cost 1,808 1,803 Buildings - at cost 155,424 153,100 Less: Accumulated depreciation (8,971 ) (5,042 ) 146,453 148,058 Plant and equipment - at cost 6,025 4,145 Less: Accumulated depreciation (1,003 ) (712 ) 5,022 3,433 HPC hardware – at cost 1,389 - Mining hardware - at cost 115,111 115,024 Less: Accumulated depreciation (26,853 ) (15,709 ) Less: Accumulated impairment (25,935 ) (25,934 ) 62,323 73,381 Development assets - at cost 47,187 14,427 Total property, plant and equipment 264,182 241,102 Reconciliations Reconciliations of the written down values at the beginning and end of the current period are set out below: Land Buildings Plant and equipment Mining hardware HPC hardware Development assets Total Consolidated $'000 $'000 $'000 $'000 $'000 $'000 $'000 Balance at 1 July 2023 1,803 148,058 3,433 73,381 - 14,427 241,102 Additions - 880 1,880 80 1,389 33,987 38,217 Disposals - - (35 ) - - - (35 ) Exchange differences 5 (26 ) (49 ) (113 ) - 45 (138 ) Reversal of impairment - - - - - 108 108 Transfers in/(out) - 1,380 - - - (1,380 ) - Depreciation expense - (3,839 ) (207 ) (11,025 ) - - (15,071 ) Balance at 31 December 2023 1,808 146,453 5,022 62,323 1,389 47,187 264,182 Depreciation of mining hardware commences once units are installed onsite and available for use. Development assets includes costs related to the development of data center infrastructure at Childress, Texas along with other early-stage development costs. Depreciation will commence on the development assets at Childress as each phase of the underlying infrastructure becomes available for use. |
Lease liabilities
Lease liabilities | 6 Months Ended |
Dec. 31, 2023 | |
Lease liabilities [Abstract] | |
Lease liabilities | Note 11. Lease liabilities 31 Dec 2023 30 Jun 2023 $'000 $'000 Current liabilities Lease liability 209 192 Non-current liabilities Lease liability 1,150 1,256 Total lease liabilities 1,359 1,448 Lease liabilities The Group's lease liability includes a 30-year lease of a site in Prince George, B.C., Canada, a three-year lease of a corporate office in Sydney, Australia and a five-year corporate office lease in Vancouver, B.C., Canada. |
Provisions
Provisions | 6 Months Ended |
Dec. 31, 2023 | |
Provisions [Abstract] | |
Provisions | Note 12. Provisions 31 Dec 2023 30 Jun 2023 $‘000 $‘000 Current liabilities Non-refundable sales tax and other provisions 10,390 6,172 Non-Refundable Sales Tax The Canada Revenue Agency (“CRA”) is currently conducting an audit of input tax credits (“ITCs”) claimed by several of the Group’s Canadian subsidiaries. The CRA has issued an assessment in relation to one of the subsidiaries which, the Directors believe may be applied across the Group’s Canadian subsidiaries. Under the proposed decision, the CRA has noted that ITCs claimed by the Group would be allowed. However, the Canadian subsidiaries would also be required to remit an amount of 5% on services exported to the Australian parent under an intercompany service agreement. The export of services typically attract a 0% rate of GST in Canada. If GST were to apply to these services at a rate of 5%, the Australian parent may not be permitted to recover this tax. The Group has submitted additional information to the CRA to further support the ITCs claimed and the 0% rate applied to the exported services and submitted a formal notice of objection to the CRA in November 2022. The CRA has acknowledged receipt of the appeal application however has not yet provided any further correspondence to the Group. R ecent amendments made to Canadian Tax legislation in June 2023 are being considered by the relevant subsidiaries and the CRA. To date, the CRA has not issued any interpretation guidance on the new legislation or proposed any potential changes to previous conclusions communicated to subsidiaries of the Group. Consequently, the affected subsidiaries continue to accrue a provision in line with the aforementioned methodology |
Issued capital
Issued capital | 6 Months Ended |
Dec. 31, 2023 | |
Issued capital [Abstract] | |
Issued capital | Note 13. Issued capital Consolidated 31 Dec 2023 30 Jun 2023 31 Dec 2023 30 Jun 2023 Shares Shares $'000 $'000 Ordinary shares - fully paid and unrestricted 82,419,050 64,747,477 1,038,846 965,857 Movements in ordinary share capital Details Date Shares $'000 Opening balance as at 1 July 2023 64,747,477 965,857 Shares issued under Committed Equity Facility 12,887,814 51,417 Shares issued under the ATM Facility 4,679,200 24,254 Share based payment - vested shares 104,559 117 Capital raise costs - (2,801 ) Closing balance as at 31 December 2023 82,419,050 1,038,846 At-the-market Facility On 13 September 2023, Iris Energy Limited entered into an At-the-market Sales Agreement with B. Riley Securities, Inc., Cantor Fitzgerald & Co. and Compass Point Research & Trading, LLC, pursuant to which Iris Energy Limited has the option, but not the obligation, to sell up to $300,000,000 of its ordinary shares through or to the Brokers, for a period of up to 36 months (“the ATM Facility”). During the period 4,679,200 ordinary shares were issued under the ATM Facility raising gross proceeds of approximately $24,253,962. Committed Equity Facility On 23 September 2022, Iris Energy Limited entered into a share purchase agreement with B. Riley Principal Capital II, LLC (“B. Riley”) to establish a committed equity facility (“ELOC”), pursuant to which Iris Energy Limited may, at its option, sell up to US$100 million of ordinary shares to B. Riley over a two-year period. A resale registration statement relating to shares sold to B. Riley under the ELOC was declared effective by the SEC on 26 January 2023. During the period 12,887,814 shares were issued under the facility raising gross proceeds of $51,417,000. Loan-funded shares As at 31 December 2023, there are 1,954,049 (30 June 2023: 1,954,049) restricted ordinary shares issued to management under the Employee Share Plan as well as certain non-employee founders of Podtech Innovation Inc. The total number of ordinary shares outstanding (including the loan funded shares) is 84,373,099 as at 31 December 2023 (30 June 2023: 66,701,526). |
Earnings per share
Earnings per share | 6 Months Ended |
Dec. 31, 2023 | |
Earnings per share [Abstract] | |
Earnings per share | Note 14. Earnings per share Three months ended 31 Dec 2023 Three months ended 31 Dec 2022 $'000 $'000 Loss after income tax (5,228 ) (143,954 ) Number Number Weighted average number of ordinary shares used in calculating basic earnings per share 72,665,044 53,028,867 Weighted average number of ordinary shares used in calculating diluted earnings per share 72,665,044 53,028,867 Cents Cents Basic earnings per share (7.20 ) (271.46 ) Diluted earnings per share (7.20 ) (271.46 ) Six months ended 31 Dec 2023 Six months ended 31 Dec 2022 $'000 $'000 Loss after income tax (10,527 ) (161,894 ) Number Number Weighted average number of ordinary shares used in calculating basic earnings per share 70,074,566 53,028,867 Weighted average number of ordinary shares used in calculating diluted earnings per share 70,074,566 53,028,867 Cents Cents Basic earnings per share (15.02 ) (305.29 ) Diluted earnings per share (15.02 ) (305.29 ) As the Group has recorded a loss after tax for all periods presented, any potential ordinary shares are antidilutive. |
Contingent liabilities
Contingent liabilities | 6 Months Ended |
Dec. 31, 2023 | |
Contingent liabilities [Abstract] | |
Contingent liabilities | Note 15. Contingent liabilities In addition to PwC continuing in their capacity as receiver in respect of the Non-Recourse SPVs, a hearing was held in June 2023 in The Supreme Court of British Columbia with respect to, among other things, claims brought by the lender, NYDIG ABL LLC, seeking remedies regarding the limited recourse equipment financing facilities entered into by the Non-Recourse SPVs. A judgement on these proceedings was delivered on 10 August 2023 which declared, among other things, that the transactions pursuant to hashpower services provided by the Non-Recourse SPVs to the Company to be void. On 21 August 2023, the Company filed a notice to appeal the judgement. On January 31,2024 NYDIG ABL LLC filed a notice of cross appeal with the Court of Appeal seeking an order that the substantive consolidation and oppression remedies be remitted to the Supreme Court for consideration and reasons. The Company’s appeal and NYDIG’s cross appeal will be heard by the Court of Appeal on March 12, 2024. |
Commitments
Commitments | 6 Months Ended |
Dec. 31, 2023 | |
Commitments [Abstract] | |
Commitments | Note 16. Commitments As at 31 December 2023, the Group had commitments of $48,215,000 (30 June 2023: $7,481,000) which are payable in instalments from January 2024 to December 2024. As at 31 December 2023, total Group commitments are set out in the table below (excludes shipping and taxes). 31 Dec 2023 30 Jun 2023 $'000 $'000 Amounts payable within 12 months of balance date 48,215 7,481 Amounts payable after 12 months of balance date 2,941 - Total Commitments 51,156 7,481 |
Share-based payments
Share-based payments | 6 Months Ended |
Dec. 31, 2023 | |
Share-based payments [Abstract] | |
Share-based payments | Note 17. S hare-bas The Group has entered into a number of share-based compensation arrangements. Details of these arrangements, which are considered as options for accounting purposes, are described in Group’s Consolidated Financial Statements for the year ended 30 June 2023. ● Employee Share Plan ● 2021 Executive Director Liquidity and Price Target Options ● Employee Option Plan ● Non-Executive Director Option Plan ● $75 Exercise Price Options ● 2022 Long-Term Incentive Plan Restricted Stock Units ● 2023 Long-Term Incentive Plan Restricted Stock Units (see below for the grants made under this 2023 LTIP this period) 2023 Long-Term Incentive Plan Restricted Stock Units On 1 July 2023, our Board approved a revised long term incentive plan under which participating employees have been granted RSUs in three tranches, the first two tranches being time-based vesting conditions and the third Under the terms of the plan, the Board maintains sole discretion over the administration, eligibility and vesting criteria of instruments issued under the LTIP. During the six months ended 31 December 2023, the following grants were made under the 2023 LTIP: ● 3,109,286 RSUs to certain employees and key management personnel (“KMP”) of the Group were issued RSUs of which: - 33.3% of each individual’s RSU grant are subject to time-based vesting conditions and will vest after one years; - 33.3% of each individual’s RSU grant are subject to time-based vesting conditions and will vest after two years - 33.4% of each individual’s RSU grant are subject to performance-based vesting conditions and will vest after three years based on total shareholder return measured against the Nasdaq Small Cap Index (NQUSS) (and continued service over the vesting period). ● 120,303 RSUs to certain Non-Executive Directors. These RSUs will vest after one year. Reconciliation of outstanding share options Set out below are summaries of options granted under all plans: Number options Weighted average exercise price Number of options Weighted average exercise price 31 Dec 2023 31 Dec 2023 30 Jun 2023 30 Jun 2023 Outstanding as at 1 July 2023 8,906,839 $ 41.93 9,010,547 $ 41.67 Granted during the period - $ 0.00 - $ 0.00 Forfeited during the period - $ 0.00 (103,708 ) $ 20.03 Vested during the period - $ 0.00 - $ 0.00 Outstanding as at 31 December 2023 8,906,839 $ 41.93 8,906,839 $ 41.93 Exercisable as at 31 December 2023 3,615,546 $ 3.00 3,485,302 $ 2.97 As at 31 December 2023, the weighted average remaining contractual life of options outstanding is 6.88 years (30 June 2023: 7.57 years). As at 31 December 2023 the exercise prices associated with the options outstanding ranges from $1.53 to $75.00 (30 June 2023: $1.53 to $75.00). Reconciliation of outstanding RSUs Set out below are summaries of RSUs granted under all plans: Number of RSUs 31 Dec 2023 Outstanding as at 1 July 3,623,867 Granted during the period 3,229,589 Forfeited during the period (177,772 ) Vested during the period (104,559 ) Outstanding as at end of period 6,571,125 Exercisable as at end of period - As at 31 December 2023, the weighted average remaining contractual life of RSUs outstanding is 3.26 years (30 June 2023: 4.55 years). All RSUs have a nil |
Related party transactions
Related party transactions | 6 Months Ended |
Dec. 31, 2023 | |
Related party transactions [Abstract] | |
Related party transactions | Note 18. Related party transactions Parent entity Iris Energy Limited is the ultimate parent entity. Changes in key management personnel There have been no new appointments made to key management personnel during the period. Transactions with related parties There were no transactions with related parties during the current and previous period. Receivable from and payable to related parties There were no trade receivables from or trade payables to related parties at the current and previous reporting date. Loans from/to related parties There were no loans to or from related parties at the current and previous reporting date. Terms and conditions The loan from related parties was interest free and has since been repaid. |
Events after the reporting peri
Events after the reporting period | 6 Months Ended |
Dec. 31, 2023 | |
Events after the reporting period [Abstract] | |
Events after the reporting period | Note 19. Events after the reporting period Mining Hardware purchase contract and option On 16 January, 2024, the Group announced it had entered into an agreement with Bitmain Technologies Delaware Limited (“Bitmain”) to purchase 5,000 Bitmain T21 miners (1.0 EH/s) which are scheduled for delivery in June 2024. The total contracted cost is $13,300,000. The Group also paid a non-refundable deposit of $12,768,000 as an initial 10% option down payment in relation to a hardware purchase option to acquire up to 48,000 Bitmain T21 miners (9.1 EH/s) at a price of $14/TH. Decisions with respect to exercising all, some or none of the miner purchase options will be made during 2024. If the entire option is exercised, the total contracted cost will be $127,680,000. If the option is exercised, the miners are scheduled for phased delivery in monthly batches from June 2024 to November 2024. ATM Facility Subsequent to 31 December 2023, the Company issued a further 19,660,120 Ordinary shar es for tota Purchases NVIDIA H100 GPUs to target generative AI On 14 February 2024, the Group announced the additional purchase of 568 of NVIDIA’s latest-generation artificial intelligence (“AI”) H100 GPUs for ~US$22 million. No other matter or circumstance has arisen since 31 December 2023 that has significantly affected, or may significantly affect the Group's operations, the results of those operations, or the Group's state of affairs in future financial years. |
Significant accounting polici_2
Significant accounting policies (Policies) | 6 Months Ended |
Dec. 31, 2023 | |
Significant accounting policies [Abstract] | |
Basis of preparation | These unaudited interim consolidated financial statements for the periods ended 31 December 2023 have been prepared in accordance with IAS 34 Interim Financial Reporting d for a complete s The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, except for the policies stated below |
Revenue recognition | Revenue recognition The Group records revenue from contracts with customers in accordance with IFRS 15, Revenue from Contracts with Customers (“IFRS 15”) as follows: ● Step 1: Identify the contract with a customer; ● Step 2: Identify the performance obligations in the contract; ● Step 3: Determine the transaction price, which is the total consideration provided by the customer; ● Step 4: Allocate the transaction price among the performance obligations in the contract based on their relative fair values; and ● Step 5: Recognize revenue when (or as) the Group satisfies a performance obligation. Bitcoin mining revenue The Group operates data center infrastructure supporting the verification and validation of Bitcoin blockchain transactions in exchange for Bitcoin, referred to as “Bitcoin mining”. The Company has entered into arrangements with mining pools, whereby computing power is directed to the mining pools in exchange for non-cash consideration in the form of Bitcoin. The provision of computing power is the only performance obligation in the contract with the mining pool operators. The Company has the right to decide the point in time and duration for which it will provide hash computation services to the mining pools. The contracts are terminable at any time by either party without substantive compensation to the other party for such termination. Upon termination, the mining pool operator (i.e., the customer) is required to pay the Company any amount due related to previously satisfied performance obligations. Therefore, the Company has determined that the duration of the contract is less than 24 hours and that the contract continuously renews throughout the day. In the mining pools which the Company participated in during the periods, the Company is not directly exposed to the pool’s success in mining blocks. The Company is rewarded in Bitcoin for the hashrate it contributes to these mining pools. The reward for the hashrate contributed by the Company is based on the current network difficulty and global daily revenues from transaction fees, less mining pool fees. The fair value of the non-cash consideration is determined using the quantity of Bitcoin received multiplied by the spot price of the Bitcoin price at the end of the day at the website of Kraken, the trading platform over which we exchange the Bitcoin we have mined (“Kraken”). Management considers the prices quoted on Kraken to be a Level 1 input under IFRS 13 Fair Value Measurement. The Group did not hold any Bitcoin on hand as at 31 December 2023 (31 December 2022: Nil |
Going concern | Going concern The Group has determined there is material uncertainty that may cast significant doubt on the Group’s ability to continue as a going concern but has concluded it is appropriate to prepare the consolidated financial statements on a going concern basis which contemplates continuity of normal business activities, the realization of assets and settlement of liabilities in the ordinary course of business. The operating cash flows generated by the Group are inherently linked to several key uncertainties and risks including, but not limited to, volatility associated with the economics of Bitcoin mining and the ability of the Group to execute its business plan. For the six months ended 31 December 2023, the Group incurred a loss after tax of $10,527,000 (31 December 2022: $161,894,000) and net operating cash inflows of $21,246,000 (31 December 2022: outflows of $6,263,000). As at 31 December 2023, the Group had net current assets of $76,843,000 (30 June 2023: net current assets of $65,229,000) and net assets of $381,848,000 (30 June 2023: net assets of $305,361,000). As further background, the Group’s miners are designed specifically to mine Bitcoin and its future success will depend in a large part upon the value of Bitcoin, and any sustained decline in its value could adversely affect the business and results of operations. Specifically, the revenues from Bitcoin mining operations are predominantly based upon two factors: (i) the number of Bitcoin rewards that are successfully mined and (ii) the value of Bitcoin. A decline in the market price of Bitcoin, increases in the difficulty of Bitcoin mining, changes in the regulatory environment, the halving event expected in Q4 FY2024 and/or adverse changes in other inherent risks would significantly negatively impact the Group’s operations. Due to the volatility of the Bitcoin price and the effects of the other aforementioned factors, there can be no guarantee that future mining operations will be profitable. The strategy to mitigate these risks and uncertainties is to try execute a business plan aimed at operational efficiency, revenue growth, improving overall mining profit, managing operating expenses and working capital requirements, maintaining potential capital expenditure optionality, and securing additional financing, as needed, through one or more debt and/or equity capital raisings. The continuing viability of the Group and its ability to continue as a going concern and meet its debts and commitments as they fall due are therefore significantly dependent upon several factors. These factors have been considered in preparing a cash flow forecast over the next 12 months to consider the going concern of the Group. The key assumptions include: ● A base case scenario assuming recent Bitcoin prices and global hashrate, with a reduction in global hashrate following the halving event expected in Q4 FY2024; ● Three operational sites in British Columbia, Canada with installed nameplate capacity of 160MW; 80MW Mackenzie (BC, Canada), 50MW Prince George (BC, Canada), and 30MW Canal Flats (BC, Canada). ● A fourth operational site at Childress, Texas with initial installed nameplate capacity of 20MW incrementally increasing to 100 MW by 30 June 2024. The key assumptions have been stress tested using a range of Bitcoin price and global hashrate scenarios including with respect to the halving event expected in Q4 FY2024 As a result, the Group has concluded there is material uncertainty related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern and, therefore, that it may be unable to realize its assets and discharge its liabilities in the normal course of business. However, the Group considers that it will be successful in the above matters and will have adequate cash reserves to enable it to meet its obligations for at least one year from the date of approval of the consolidated financial statements, and, accordingly, has prepared the consolidated financial statements on a going concern basis. |
New or amended Accounting Standards and Interpretations adopted | New or amended Accounting Standards and Interpretations adopted The Group has adopted all of the new or amended IFRS and Interpretations as issued by the International Accounting Standards Board (“IASB”) that are mandatory for the current reporting period. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. The Group believes that the impact of recently issued standards or amendments to existing standards that are not yet effective will not have a material impact on the Group’s unaudited interim consolidated financial statements. |
Other income (Tables)
Other income (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Other income [Abstract] | |
Other Income | Three months ended 31 Dec 2023 Three months ended 31 Dec 2022 Six months ended 31 Dec 2023 Six months ended 31 Dec 2022 $’000 $’000 $’000 $’000 Other income 527 - 527 - |
Other operating expenses (Table
Other operating expenses (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Other operating expenses [Abstract] | |
Other Operating Expenses | Three months ended 31 Dec 2023 Three months ended 31 Dec 2022 Six months ended 31 Dec 2023 Six months ended 31 Dec 2022 $'000 $'000 $'000 $'000 Insurance 1,447 1,437 3,099 3,392 Sponsorship and marketing 401 99 694 110 Short term office and equipment rental 92 54 203 155 Site expenses 1,511 889 3,068 1,377 Charitable donations 91 85 233 149 Filing fees 19 19 38 39 Site identification costs - - - 15 Other expenses 787 506 1,336 976 Non-refundable sales tax (See Note 12) 1,372 535 2,966 1,027 Non-refundable provincial sales tax 308 - 622 - Legal expenses 1,797 - 1,797 - Total other operating expenses 7,825 3,624 14,056 7,240 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Cash and cash equivalents [Abstract] | |
Cash and Cash Equivalents | 31 Dec 2023 30 Jun 2023 $'000 $'000 Current assets Cash at bank 90,307 38,657 Cash on deposit - 30,237 Total cash and cash equivalents 90,307 68,894 |
Other receivables (Tables)
Other receivables (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Other receivables [Abstract] | |
Other Receivables | 31 Dec 2023 30 Jun 2023 $'000 $'000 Current assets Share issuance proceeds - 1,581 Trade and other receivables 635 97 Provincial sales tax receivable - 122 Goods and services tax receivable 5,054 4,743 Total other receivables 5,689 6,543 |
Financial asset at fair value_2
Financial asset at fair value through profit or loss (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Financial asset at fair value through profit or loss [Abstract] | |
Financial Asset at Fair Value through Profit or Loss | 31 Dec 2023 30 Jun 2023 $'000 $'000 Current assets Electricity financial asset 1,280 - Reconciliation Reconciliation of the fair values at the beginning and end of the current and previous financial period are set out below: Opening fair value - - Additions 1,538 - Revaluation decrements (unrealized loss) (258 ) - Closing fair value 1,280 - |
Computer hardware prepayments (
Computer hardware prepayments (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Computer hardware prepayments [Abstract] | |
Mining Hardware Prepayments | 31 Dec 2023 30 Jun 2023 $'000 $'000 Non-current assets Mining hardware prepayments 22,264 68 High-performance computing hardware prepayments 8,291 - Total computer hardware prepayments 30,555 68 |
Prepayments and other assets (T
Prepayments and other assets (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Prepayments and other assets [Abstract] | |
Prepayments and other assets | 31 Dec 2023 30 Jun 2023 $'000 $'000 Current assets Security deposits 2,905 2,420 Prepayments 9,005 11,373 11,910 13,793 Non-current assets Security deposits 10,365 - Total prepayments and other assets 22,275 13,793 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Property, plant and equipment [Abstract] | |
Consolidated Property, Plant and Equipment | 31 Dec 2023 30 Jun 2023 $'000 $'000 Non-current assets Land - at cost 1,808 1,803 Buildings - at cost 155,424 153,100 Less: Accumulated depreciation (8,971 ) (5,042 ) 146,453 148,058 Plant and equipment - at cost 6,025 4,145 Less: Accumulated depreciation (1,003 ) (712 ) 5,022 3,433 HPC hardware – at cost 1,389 - Mining hardware - at cost 115,111 115,024 Less: Accumulated depreciation (26,853 ) (15,709 ) Less: Accumulated impairment (25,935 ) (25,934 ) 62,323 73,381 Development assets - at cost 47,187 14,427 Total property, plant and equipment 264,182 241,102 |
Reconciliations of Written Down Values of Property, Plant and Equipment | Reconciliations of the written down values at the beginning and end of the current period are set out below: Land Buildings Plant and equipment Mining hardware HPC hardware Development assets Total Consolidated $'000 $'000 $'000 $'000 $'000 $'000 $'000 Balance at 1 July 2023 1,803 148,058 3,433 73,381 - 14,427 241,102 Additions - 880 1,880 80 1,389 33,987 38,217 Disposals - - (35 ) - - - (35 ) Exchange differences 5 (26 ) (49 ) (113 ) - 45 (138 ) Reversal of impairment - - - - - 108 108 Transfers in/(out) - 1,380 - - - (1,380 ) - Depreciation expense - (3,839 ) (207 ) (11,025 ) - - (15,071 ) Balance at 31 December 2023 1,808 146,453 5,022 62,323 1,389 47,187 264,182 |
Lease liabilities (Tables)
Lease liabilities (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Lease liabilities [Abstract] | |
Lease Liabilities | 31 Dec 2023 30 Jun 2023 $'000 $'000 Current liabilities Lease liability 209 192 Non-current liabilities Lease liability 1,150 1,256 Total lease liabilities 1,359 1,448 |
Provisions (Tables)
Provisions (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Provisions [Abstract] | |
Provisions | 31 Dec 2023 30 Jun 2023 $‘000 $‘000 Current liabilities Non-refundable sales tax and other provisions 10,390 6,172 |
Issued capital (Tables)
Issued capital (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Issued capital [Abstract] | |
Issued Capital | Consolidated 31 Dec 2023 30 Jun 2023 31 Dec 2023 30 Jun 2023 Shares Shares $'000 $'000 Ordinary shares - fully paid and unrestricted 82,419,050 64,747,477 1,038,846 965,857 |
Movements in Ordinary Share Capital | Movements in ordinary share capital Details Date Shares $'000 Opening balance as at 1 July 2023 64,747,477 965,857 Shares issued under Committed Equity Facility 12,887,814 51,417 Shares issued under the ATM Facility 4,679,200 24,254 Share based payment - vested shares 104,559 117 Capital raise costs - (2,801 ) Closing balance as at 31 December 2023 82,419,050 1,038,846 |
Earnings per share (Tables)
Earnings per share (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Earnings per share [Abstract] | |
Earnings Per Share Basic and Diluted | Three months ended 31 Dec 2023 Three months ended 31 Dec 2022 $'000 $'000 Loss after income tax (5,228 ) (143,954 ) Number Number Weighted average number of ordinary shares used in calculating basic earnings per share 72,665,044 53,028,867 Weighted average number of ordinary shares used in calculating diluted earnings per share 72,665,044 53,028,867 Cents Cents Basic earnings per share (7.20 ) (271.46 ) Diluted earnings per share (7.20 ) (271.46 ) Six months ended 31 Dec 2023 Six months ended 31 Dec 2022 $'000 $'000 Loss after income tax (10,527 ) (161,894 ) Number Number Weighted average number of ordinary shares used in calculating basic earnings per share 70,074,566 53,028,867 Weighted average number of ordinary shares used in calculating diluted earnings per share 70,074,566 53,028,867 Cents Cents Basic earnings per share (15.02 ) (305.29 ) Diluted earnings per share (15.02 ) (305.29 ) |
Commitments (Tables)
Commitments (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Commitments [Abstract] | |
Maturity of Committed Amount Payable | As at 31 December 2023, total Group commitments are set out in the table below (excludes shipping and taxes). 31 Dec 2023 30 Jun 2023 $'000 $'000 Amounts payable within 12 months of balance date 48,215 7,481 Amounts payable after 12 months of balance date 2,941 - Total Commitments 51,156 7,481 |
Share-based payments (Tables)
Share-based payments (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
Share-based payments [Abstract] | |
Reconciliation of Outstanding Share Options | Set out below are summaries of options granted under all plans: Number options Weighted average exercise price Number of options Weighted average exercise price 31 Dec 2023 31 Dec 2023 30 Jun 2023 30 Jun 2023 Outstanding as at 1 July 2023 8,906,839 $ 41.93 9,010,547 $ 41.67 Granted during the period - $ 0.00 - $ 0.00 Forfeited during the period - $ 0.00 (103,708 ) $ 20.03 Vested during the period - $ 0.00 - $ 0.00 Outstanding as at 31 December 2023 8,906,839 $ 41.93 8,906,839 $ 41.93 Exercisable as at 31 December 2023 3,615,546 $ 3.00 3,485,302 $ 2.97 |
Reconciliation of Outstanding RSUs | Set out below are summaries of RSUs granted under all plans: Number of RSUs 31 Dec 2023 Outstanding as at 1 July 3,623,867 Granted during the period 3,229,589 Forfeited during the period (177,772 ) Vested during the period (104,559 ) Outstanding as at end of period 6,571,125 Exercisable as at end of period - |
Significant accounting polici_3
Significant accounting policies (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2023 | |
Bitcoin mining revenue [Abstract] | |||||
Bitcoin on hand | $ 0 | $ 0 | $ 0 | $ 0 | |
Going concern [Abstract] | |||||
Loss after income tax | (5,228) | $ (143,954) | (10,527) | (161,894) | |
Net operating cash (outflows) inflows | 21,246 | $ (6,263) | |||
Net current assets | 76,843 | 76,843 | $ 65,229 | ||
Net assets | $ 381,848 | $ 381,848 | $ 305,361 | ||
Minimum [Member] | |||||
Going concern [Abstract] | |||||
Period to adequate cash reserves to enable to meet its obligations from date of approval | 1 year |
Other income (Details)
Other income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Other income [Abstract] | ||||
Other income | $ 527 | $ 0 | $ 527 | $ 0 |
Other operating expenses (Detai
Other operating expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Other operating expenses [Abstract] | ||||
Insurance | $ 1,447 | $ 1,437 | $ 3,099 | $ 3,392 |
Sponsorship and marketing | 401 | 99 | 694 | 110 |
Short term office and equipment rental | 92 | 54 | 203 | 155 |
Site expenses | 1,511 | 889 | 3,068 | 1,377 |
Charitable donations | 91 | 85 | 233 | 149 |
Filing fees | 19 | 19 | 38 | 39 |
Site identification costs | 0 | 0 | 0 | 15 |
Other expenses | 787 | 506 | 1,336 | 976 |
Non-refundable sales tax (See Note 12) | 1,372 | 535 | 2,966 | 1,027 |
Non-refundable provincial sales tax | 308 | 0 | 622 | 0 |
Legal expenses | 1,797 | 0 | 1,797 | 0 |
Total other operating expenses | $ 7,825 | $ 3,624 | $ 14,056 | $ 7,240 |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Current assets [Abstract] | ||||
Cash at bank | $ 90,307 | $ 38,657 | ||
Cash on deposit | 0 | 30,237 | ||
Total cash and cash equivalents | $ 90,307 | $ 68,894 | $ 40,661 | $ 109,970 |
Other receivables (Details)
Other receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Current assets [Abstract] | ||
Share issuance proceeds | $ 0 | $ 1,581 |
Trade and other receivables | 635 | 97 |
Provincial sales tax receivable | 0 | 122 |
Goods and services tax receivable | 5,054 | 4,743 |
Total other receivables | $ 5,689 | $ 6,543 |
Financial asset at fair value_3
Financial asset at fair value through profit or loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2023 | |
Current assets [Abstract] | |||||
Electricity financial asset | $ 1,280 | $ 1,280 | $ 0 | ||
Reconciliation of the fair values at the beginning and end of the current and previous financial period are set out below: [abstract] | |||||
Opening fair value | 0 | $ 0 | 0 | ||
Additions | 1,538 | 0 | |||
Revaluation decrements (unrealized loss) | (258) | $ 0 | (258) | 0 | 0 |
Closing fair value | 1,280 | 1,280 | 0 | ||
Realized gain | $ 101 | $ 0 | $ 3,119 | $ 0 |
Computer hardware prepayments_2
Computer hardware prepayments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Non-current assets [abstract] | ||
Mining hardware prepayments | $ 22,264 | $ 68 |
High-performance computing hardware prepayments | 8,291 | 0 |
Total computer hardware prepayments | $ 30,555 | $ 68 |
Prepayments and other assets (D
Prepayments and other assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Current assets [Abstract] | ||
Security deposits | $ 2,905 | $ 2,420 |
Prepayments | 9,005 | 11,373 |
Prepayments and deposits | 11,910 | 13,793 |
Non-current assets [Abstract] | ||
Security deposits | 10,365 | 0 |
Total prepayments and other assets | $ 22,275 | $ 13,793 |
Property, plant and equipment,
Property, plant and equipment, Consolidated (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Non-current assets [Abstract] | ||
Property, plant and equipment | $ 264,182 | $ 241,102 |
Land [Member] | ||
Non-current assets [Abstract] | ||
Property, plant and equipment | 1,808 | 1,803 |
Land [Member] | At Cost [Member] | ||
Non-current assets [Abstract] | ||
Property, plant and equipment | 1,808 | 1,803 |
Buildings [Member] | ||
Non-current assets [Abstract] | ||
Property, plant and equipment | 146,453 | 148,058 |
Buildings [Member] | At Cost [Member] | ||
Non-current assets [Abstract] | ||
Property, plant and equipment | 155,424 | 153,100 |
Buildings [Member] | Accumulated Depreciation [Member] | ||
Non-current assets [Abstract] | ||
Property, plant and equipment | (8,971) | (5,042) |
Plant and equipment [Member] | ||
Non-current assets [Abstract] | ||
Property, plant and equipment | 5,022 | 3,433 |
Plant and equipment [Member] | At Cost [Member] | ||
Non-current assets [Abstract] | ||
Property, plant and equipment | 6,025 | 4,145 |
Plant and equipment [Member] | Accumulated Depreciation [Member] | ||
Non-current assets [Abstract] | ||
Property, plant and equipment | (1,003) | (712) |
HPC hardware [Member] | ||
Non-current assets [Abstract] | ||
Property, plant and equipment | 1,389 | 0 |
HPC hardware [Member] | At Cost [Member] | ||
Non-current assets [Abstract] | ||
Property, plant and equipment | 1,389 | 0 |
Mining hardware [Member] | ||
Non-current assets [Abstract] | ||
Property, plant and equipment | 62,323 | 73,381 |
Mining hardware [Member] | At Cost [Member] | ||
Non-current assets [Abstract] | ||
Property, plant and equipment | 115,111 | 115,024 |
Mining hardware [Member] | Accumulated Depreciation [Member] | ||
Non-current assets [Abstract] | ||
Property, plant and equipment | (26,853) | (15,709) |
Mining hardware [Member] | Accumulated impairment [Member] | ||
Non-current assets [Abstract] | ||
Property, plant and equipment | (25,935) | (25,934) |
Development assets [Member] | ||
Non-current assets [Abstract] | ||
Property, plant and equipment | 47,187 | 14,427 |
Development assets [Member] | At Cost [Member] | ||
Non-current assets [Abstract] | ||
Property, plant and equipment | $ 47,187 | $ 14,427 |
Property, plant and equipment_2
Property, plant and equipment, Reconciliations of Written Down Values (Details) $ in Thousands | 6 Months Ended |
Dec. 31, 2023 USD ($) | |
Reconciliations of the written down values [Abstract] | |
Property, plant and equipment, beginning balance | $ 241,102 |
Additions | 38,217 |
Disposals | (35) |
Exchange differences | (138) |
Reversal of impairment | 108 |
Transfers in/(out) | 0 |
Depreciation expense | (15,071) |
Property, plant and equipment, ending balance | 264,182 |
Land [Member] | |
Reconciliations of the written down values [Abstract] | |
Property, plant and equipment, beginning balance | 1,803 |
Additions | 0 |
Disposals | 0 |
Exchange differences | 5 |
Reversal of impairment | 0 |
Transfers in/(out) | 0 |
Depreciation expense | 0 |
Property, plant and equipment, ending balance | 1,808 |
Buildings [Member] | |
Reconciliations of the written down values [Abstract] | |
Property, plant and equipment, beginning balance | 148,058 |
Additions | 880 |
Disposals | 0 |
Exchange differences | (26) |
Reversal of impairment | 0 |
Transfers in/(out) | 1,380 |
Depreciation expense | (3,839) |
Property, plant and equipment, ending balance | 146,453 |
Plant and equipment [Member] | |
Reconciliations of the written down values [Abstract] | |
Property, plant and equipment, beginning balance | 3,433 |
Additions | 1,880 |
Disposals | (35) |
Exchange differences | (49) |
Reversal of impairment | 0 |
Transfers in/(out) | 0 |
Depreciation expense | (207) |
Property, plant and equipment, ending balance | 5,022 |
Mining hardware [Member] | |
Reconciliations of the written down values [Abstract] | |
Property, plant and equipment, beginning balance | 73,381 |
Additions | 80 |
Disposals | 0 |
Exchange differences | (113) |
Reversal of impairment | 0 |
Transfers in/(out) | 0 |
Depreciation expense | (11,025) |
Property, plant and equipment, ending balance | 62,323 |
HPC hardware [Member] | |
Reconciliations of the written down values [Abstract] | |
Property, plant and equipment, beginning balance | 0 |
Additions | 1,389 |
Disposals | 0 |
Exchange differences | 0 |
Reversal of impairment | 0 |
Transfers in/(out) | 0 |
Depreciation expense | 0 |
Property, plant and equipment, ending balance | 1,389 |
Development assets [Member] | |
Reconciliations of the written down values [Abstract] | |
Property, plant and equipment, beginning balance | 14,427 |
Additions | 33,987 |
Disposals | 0 |
Exchange differences | 45 |
Reversal of impairment | 108 |
Transfers in/(out) | (1,380) |
Depreciation expense | 0 |
Property, plant and equipment, ending balance | $ 47,187 |
Lease liabilities (Details)
Lease liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2023 | Jun. 30, 2023 | |
Current liabilities [abstract] | ||
Lease liability | $ 209 | $ 192 |
Non-current liabilities [abstract] | ||
Lease liability | 1,150 | 1,256 |
Total lease liabilities | $ 1,359 | $ 1,448 |
Prince George, British Columbia, Canada [Member] | Lease liabilities [member] | ||
Non-current liabilities [abstract] | ||
Lease term | 30 years | |
Sydney, Australia [Member] | Lease liabilities [member] | ||
Non-current liabilities [abstract] | ||
Lease term | 3 years | |
Vancouver, British Columbia, Canada [Member] | Lease liabilities [member] | ||
Non-current liabilities [abstract] | ||
Lease term | 5 years |
Provisions (Details)
Provisions (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2023 | Jun. 30, 2023 | |
Current liabilities [Abstract] | ||
Non-refundable sales tax and other provisions | $ 10,390 | $ 6,172 |
CANADA [Member] | ||
Current liabilities [Abstract] | ||
Percentage of GST required to remit | 5% | |
Percentage of GST on exported services | 0% |
Issued capital, Ordinary shares
Issued capital, Ordinary shares (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Ordinary share capital [abstract] | ||
Ordinary shares - fully paid and unrestricted | $ 1,038,846 | $ 965,857 |
Issued Capital [Member] | ||
Ordinary share capital [abstract] | ||
Ordinary shares - fully paid and unrestricted (in shares) | 82,419,050 | 64,747,477 |
Ordinary shares - fully paid and unrestricted | $ 1,038,846 | $ 965,857 |
Issued capital, Movements in Or
Issued capital, Movements in Ordinary Share Capital (Details) $ in Thousands | 6 Months Ended |
Dec. 31, 2023 USD ($) shares | |
Issued capital [Abstract] | |
Opening balance | $ 965,857 |
Closing balance | $ 1,038,846 |
Issued Capital [Member] | |
Number of shares [Abstract] | |
Opening balance (in shares) | shares | 64,747,477 |
Shares issued under Committed Equity Facility (in shares) | shares | 12,887,814 |
Shares issued under the ATM Facility (in shares) | shares | 4,679,200 |
Share based payment - vested shares (in shares) | shares | 104,559 |
Capital raise costs (in shares) | shares | 0 |
Closing balance (in shares) | shares | 82,419,050 |
Issued capital [Abstract] | |
Opening balance | $ 965,857 |
Shares issued under Committed Equity Facility | 51,417 |
Shares issued under ATM Facility | 24,254 |
Share based payment - vested shares | 117 |
Capital raise costs | (2,801) |
Closing balance | $ 1,038,846 |
Issued capital, Summary (Detail
Issued capital, Summary (Details) - Ordinary Shares [Member] - USD ($) | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 | Jun. 30, 2023 | Sep. 13, 2023 | Sep. 23, 2022 | |
Loan-funded shares [Abstract] | ||||
Number of restricted shares issued (in shares) | 1,954,049 | 1,954,049 | ||
Number of shares outstanding (in shares) | 84,373,099 | 66,701,526 | ||
At-the-Market [Member] | B. Riley Principal Capital II, LLC [Member] | ||||
Share purchase agreement [Abstract] | ||||
Term of option agreement to sell ordinary shares | 36 months | |||
Shares issued (in shares) | 4,679,200 | |||
Proceeds from issue of ordinary shares | $ 24,253,962 | |||
At-the-Market [Member] | Maximum [Member] | B. Riley Principal Capital II, LLC [Member] | Forecast [Member] | ||||
Share purchase agreement [Abstract] | ||||
Maximum value of shares to be issued under share sale option agreement (in shares) | 300,000,000 | |||
Committed Equity Facility [Member] | B. Riley Principal Capital II, LLC [Member] | ||||
Share purchase agreement [Abstract] | ||||
Term of option agreement to sell ordinary shares | 2 years | |||
Shares issued (in shares) | 12,887,814 | |||
Proceeds from issue of ordinary shares | $ 51,417,000 | |||
Committed Equity Facility [Member] | Maximum [Member] | B. Riley Principal Capital II, LLC [Member] | ||||
Share purchase agreement [Abstract] | ||||
Maximum value of shares to be issued under share sale option agreement (in shares) | 100,000,000 |
Earnings per share (Details)
Earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Earnings per share [Abstract] | ||||
Loss after income tax | $ (5,228) | $ (143,954) | $ (10,527) | $ (161,894) |
Weighted average number of ordinary shares used in calculating basic earnings per share (in shares) | 72,665,044 | 53,028,867 | 70,074,566 | 53,028,867 |
Weighted average number of ordinary shares used in calculating diluted earnings per share (in shares) | 72,665,044 | 53,028,867 | 70,074,566 | 53,028,867 |
Basic earnings per share (in dollars per share) | $ (0.072) | $ (2.7146) | $ (0.1502) | $ (3.0529) |
Diluted earnings per share (in dollars per share) | $ (0.072) | $ (2.7146) | $ (0.1502) | $ (3.0529) |
Commitments (Details)
Commitments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 30, 2023 |
Committed Amounts Payable [Abstract] | ||
Commitments | $ 51,156 | $ 7,481 |
Amounts Payable within 12 Months of Balance Date [Member] | ||
Committed Amounts Payable [Abstract] | ||
Commitments | 48,215 | 7,481 |
Amounts Payable After 12 Months of Balance Date [Member] | ||
Committed Amounts Payable [Abstract] | ||
Commitments | $ 2,941 | $ 0 |
Share-based payments, 2023 Long
Share-based payments, 2023 Long-Term Incentive Plan Restricted Stock Units (Details) - 2023 Long-Term Incentive Plan Restricted Stock Units [Member] | 6 Months Ended |
Dec. 31, 2023 shares Tranche | |
Share-based payment [Abstract] | |
Number of tranches | 3 |
Tranche One [Member] | Time-based Vesting Conditions [Member] | |
Share-based payment [Abstract] | |
Percentage of grants vested | 33.30% |
Vesting period | 1 year |
Tranche One and Two [Member] | Time-based Vesting Conditions [Member] | |
Share-based payment [Abstract] | |
Number of tranches | 2 |
Tranche Two [Member] | Time-based Vesting Conditions [Member] | |
Share-based payment [Abstract] | |
Percentage of grants vested | 33.30% |
Vesting period | 2 years |
Tranche Three [Member] | Performance-based Vesting Conditions [Member] | |
Share-based payment [Abstract] | |
Number of tranches | 3 |
Percentage of grants vested | 33.40% |
Vesting period | 3 years |
Non-Executive Director [Member] | |
Share-based payment [Abstract] | |
Vesting period | 1 year |
Number of RSUs vested (in shares) | shares | 120,303 |
Key Management Personnel [Member] | |
Share-based payment [Abstract] | |
Number of RSUs issued (in shares) | shares | 3,109,286 |
Share-based payments, Reconcili
Share-based payments, Reconciliation of Outstanding Share Options (Details) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2023 shares $ / shares | Jun. 30, 2023 shares $ / shares | |
Share Options [Member] | ||
Number of Options [Abstract] | ||
Outstanding beginning of period (in shares) | shares | 8,906,839 | 9,010,547 |
Granted during the period (in shares) | shares | 0 | 0 |
Forfeited during the period (in shares) | shares | 0 | (103,708) |
Vested during the period (in shares) | shares | 0 | 0 |
Outstanding end of period (in shares) | shares | 8,906,839 | 8,906,839 |
Exercisable at end of period (in shares) | shares | 3,615,546 | 3,485,302 |
Weighted Average Exercise Price [Abstract] | ||
Outstanding beginning of period (in dollars per share) | $ 41.93 | $ 41.67 |
Granted during the period (in dollars per share) | 0 | 0 |
Forfeited during the period (in dollars per share) | 0 | 20.03 |
Vested during the period (in dollars per share) | 0 | 0 |
Outstanding end of period (in dollars per share) | 41.93 | 41.93 |
Exercisable at end of period (in dollars per share) | $ 3 | $ 2.97 |
Weighted average remaining contractual life | 6 years 10 months 17 days | 7 years 6 months 25 days |
Share Options [Member] | Minimum [Member] | ||
Weighted Average Exercise Price [Abstract] | ||
Outstanding beginning of period (in dollars per share) | $ 1.53 | |
Outstanding end of period (in dollars per share) | 1.53 | $ 1.53 |
Share Options [Member] | Maximum [Member] | ||
Weighted Average Exercise Price [Abstract] | ||
Outstanding beginning of period (in dollars per share) | 75 | |
Outstanding end of period (in dollars per share) | 75 | $ 75 |
$75 Exercise Price Options [Member] | ||
Weighted Average Exercise Price [Abstract] | ||
Granted during the period (in dollars per share) | $ 75 |
Share-based payments, Reconci_2
Share-based payments, Reconciliation of Outstanding RSUs (Details) - Restricted Share Units [Member] | 6 Months Ended | 12 Months Ended |
Dec. 31, 2023 shares $ / shares | Jun. 30, 2023 shares | |
Number of RSUs [Abstract] | ||
Outstanding at beginning of period (in shares) | 3,623,867 | |
Granted during the year (in shares) | 3,229,589 | |
Forfeited during the year (in shares) | (177,772) | |
Exercised during the period (in shares) | (104,559) | |
Outstanding at end of period (in dollars per share) | 6,571,125 | 3,623,867 |
Exercisable at the end of period (in dollars per share) | 0 | |
Weighted average remaining contractual life of RSUs outstanding | 3 years 3 months 3 days | 4 years 6 months 18 days |
Exercise price of RSUs (in dollars per share) | $ / shares | $ 0 |
Related party transactions (Det
Related party transactions (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Jun. 30, 2023 | |
Outstanding balances for related party transactions [abstract] | ||
Transactions with related parties | $ 0 | $ 0 |
Trade receivables from related parties | 0 | 0 |
Trade payables to related parties | 0 | 0 |
Loans from related parties | 0 | 0 |
Loans to related parties | $ 0 | $ 0 |
Events after the reporting pe_2
Events after the reporting period (Details) - Subsequent events [Member] | 2 Months Ended | 6 Months Ended | ||
Feb. 14, 2024 USD ($) NVIDIA | Jan. 16, 2024 USD ($) Miners | Feb. 15, 2024 USD ($) shares | Nov. 30, 2024 USD ($) | |
Events after the reporting periods [Abstract] | ||||
Shares issued under the ATM Facility (in shares) | shares | 19,660,120 | |||
Shares issued under ATM Facility | $ 92,938,000 | |||
Additional NVIDIA purchased | NVIDIA | 568 | |||
Cost of artificial intelligence | $ 22,000,000 | |||
Miner Purchase Option with Bitmain [Member] | Mining assets [member] | ||||
Events after the reporting periods [Abstract] | ||||
Number of Bitmain miners purchased | Miners | 5,000 | |||
Hashrate capacity of Bitmain T21 miners | 1 | |||
Contract cost of Bitmain T21 miners | $ 13,300,000 | $ 127,680,000 | ||
Non-refundable deposit paid as initial down payment | $ 12,768,000 | |||
Percentage of initial down payment of deposit | 10% | |||
Additional Bitmain miners purchased | Miners | 48,000 | |||
Increase in Hashrate operating capacity of Bitmain T21 miners | 9.1 |