A grand record-breaking US heatwave helped homegrown bitcoin miner Iris Energy earn historic $US7 million ($11 million) in profit last month, as it sold contracted electricity back to the Texas grid on surging demand for air conditioners in the US’ second-largest state. Iris Energy’s co-founder and former Macquarie banker Daniel Roberts said the Nasdaq-listed miner turned energy trader was in effect paid about $US28,000 per bitcoin mined in August, after it adjusted for the difference between what it paid for forward contracted electricity, and what it earned selling it last month.
(US) – The scorching US heatwave shattered records and boosted Iris Energy, a US-based bitcoin miner, to achieve a staggering $11 million profit in the previous month.
They achieved this by selling contracted electricity back to the Texas grid, as the demand for air conditioning skyrocketed in the sweltering Texas heat.
The emergency measures implemented by Texas’ grid operator on Wednesday aimed to prevent rolling blackouts, leading energy-intensive bitcoin miners to contribute their surplus power to the market.
Iris Energy, co-founded by former Macquarie banker Daniel Roberts, demonstrated that their Nasdaq-listed mining operation and energy trading venture were indeed lucrative.
How Aussie Bitcoin Miner Earned $28,000 per Bitcoin mined in August
Adjusting for the discrepancy between their expenditure on contracted electricity and the revenue generated from selling it last month, they effectively received approximately $28,000 per bitcoin mined in August.
Roberts emphasized their flexibility in utilizing the power for mining when it’s profitable and selling it when the demand and prices spike due to factors like weather events or surging consumer needs.
In August, they earned $11.5 million from bitcoin and energy sales, mined 410 bitcoins, and incurred an energy expense of $4.3 million.
In contrast, they posted an operating loss of $8 million on sales of $13.8 million for the second quarter of financial year 2023.
Despite the rollercoaster ride of legal issues and bitcoin’s price fluctuations, Roberts remains optimistic about Iris Energy’s future.
He believes that the tightly held nature of bitcoin, coupled with potential demand catalysts like supply halving, changes in fiat monetary supply, and potential ETF approvals, could ignite substantial demand and drive the business forward.
Meanwhile, rival bitcoin miner Riot Energy reported earning $31.7 million from selling power back to Texas’ grid operators on the same day.