However, Iris is at the beginning of plans for a rapid increase in computing power, represented in the Bitcoin world as exahashes (EH / s) per second. Iris’ EH / s for the March quarter was 0.8, but will reach 10 EH / s at the beginning of the following calendar year and will reach its final goal of 15 EH / s later in the same year.
Is there an escape to security as crypto assets plummet? Illustration: David Rowe
To get there, Iris is building four renewable energy-powered data centers (three in British Columbia, Canada and one in Texas). Iris believes that if Bitcoin is priced at $ 40,000, it can generate a profit of $ 505 million at 10 EH / sec and a profit of $ 731 million at 15 EH / sec.
Roberts is excited about the progress of the veteran team of Iris infrastructure. However, the decline in Bitcoin prices cannot be easily ignored. Will Iris’ economics build up?
“Ride on volatility”
Roberts is confident. First, the cost of producing iris per Bitcoin over the past few months has been between $ 8,000 and $ 8,500. So, in theory, Bitcoin could fall even further before Bitcoin’s profitability is threatened.
Second, the data center under construction in Texas will occupy 63% of the computing power, energy costs will be 30% to 40% lower than other sites, and production costs will be further reduced.
Third, falling Bitcoin prices could drive other Bitcoin miners with high energy costs out of the market. Fewer miners in the market means that Iris will increase its share of Bitcoin mined every 10 minutes.
“We are focusing on the profitability of our business, the operational levers we can draw if Bitcoin has a protracted drawdown,” says Roberts. “We are a real asset business, very profitable, volatile and we can be here when the good times come.”
Roberts Crash with stable coins Recently, Bitcoin has panicked the crypto market. Stablecoin is an early stage experiment that needs to be treated that way, he says. Bitcoin, on the other hand, is “finished for 10 years” and offers far better protection in terms of security level, with the fact that only 21 million coins are mined.
Roberts states that the period of “creative destruction” of cryptocurrencies can be as healthy in the long run as it is in the economy.
“This is a very efficient innovation environment, and there is definitely a moment of discovery about asset value and those innovations, and if a drawdown occurs, it will be reset, so that washout is really beneficial to the sector. People reassess what is worth it and why it is worth it, and you can grow sustainably again. “
For now, it feels like a very optimistic view. Roberts may be able to distinguish Bitcoin from the most speculative part of the world of cryptocurrencies, but how many other investors do the same?
The big question raised by the stable coin crash is how far the transmission will spread. The losses that investors incur in a stable coin portfolio have already spread to Bitcoin and other more established digital assets.Will Cryptographic loss also spreads In stock?
Retail crypto investors can be the hardest hit. But it’s hard to see institutional investors stepping into rescue crypto assets in the way they buy beaten stocks-most professional investors have more than enough volatility in their stock portfolio. , I don’t want to add any more.
Roberts and Iris may ultimately provide a test of investor desire for this sector. Iris has secured $ 750 million of the $ 1 billion capital needed to reach 15 EH / s, but needs to leverage the bond market to get more money.
Roberts is confident that a debt-free balance sheet, a solid net cash flow, and a stock-raising record will help Iris convince true believers to boost the company’s growth. “This is a rewarding macro environment and we respect it. But likewise, I think we put ourselves in a really good position.”
Does the market recognize it? The speed at which the turmoil is now spreading through cryptocurrencies makes it impossible to answer.
