Document and Entity Information
Document and Entity Information | 12 Months Ended |
Jun. 30, 2022 shares | |
Entity Addresses [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Jun. 30, 2022 |
Current Fiscal Year End Date | --06-30 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-41072 |
Entity Registrant Name | Iris Energy Ltd |
Entity Central Index Key | 0001878848 |
Entity Incorporation, State or Country Code | C3 |
Entity Address, Address Line One | Level 12 |
Entity Address, Address Line Two | 44 Market Street |
Entity Address, City or Town | Sydney, NSW |
Entity Address, Postal Zip Code | 2000 |
Entity Address, Country | AU |
Title of 12(b) Security | Ordinary shares, no par value |
Trading Symbol | IREN |
Security Exchange Name | NASDAQ |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
ICFR Auditor Attestation Flag | false |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Auditor Firm ID | 32 |
Auditor Name | ArmaninoLLP |
Auditor Location | Dallas, Texas |
Ordinary Shares [Member] | |
Entity Addresses [Line Items] | |
Entity Common Stock, Shares Outstanding | 54,982,916 |
Class B Shares [Member] | |
Entity Addresses [Line Items] | |
Entity Common Stock, Shares Outstanding | 2 |
Business Contact [Member] | |
Entity Addresses [Line Items] | |
Contact Personnel Name | Joanna Brand |
Entity Address, Address Line One | Level 12 |
Entity Address, Address Line Two | 44 Market Street |
Entity Address, City or Town | Sydney, NSW |
Entity Address, Postal Zip Code | 2000 |
Entity Address, Country | AU |
Country Region | 61 |
City Area Code | 2 |
Local Phone Number | 7906 8301 |
Consolidated statements of prof
Consolidated statements of profit or loss and other comprehensive income - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue | |||
Bitcoin mining revenue | $ 59,037,000 | $ 7,898,000 | $ 2,174,000 |
Other income | 12,000 | 590,000 | 16,000 |
Expenses | |||
Depreciation | (7,741,000) | (1,252,000) | (757,000) |
Electricity charges | (10,978,000) | (2,654,000) | (1,306,000) |
Employee benefits expense | (7,448,000) | (2,221,000) | (920,000) |
Share-based payments expense | (13,896,000) | (805,000) | (179,000) |
Impairment of assets | (167,000) | (432,000) | 0 |
Loss on disposal of assets | 0 | (202,000) | 0 |
Professional fees | (6,807,000) | (980,000) | (521,000) |
Other operating expenses | (11,705,000) | (466,000) | (183,000) |
Operating profit/(loss) | 307,000 | (524,000) | (1,676,000) |
Finance expense | (425,441,000) | (61,175,000) | (102,000) |
Interest income | 79,000 | 6,000 | 3,000 |
Foreign exchange gain/(loss) | 8,009,000 | 2,542,000 | (367,000) |
Loss before income tax expense | (417,046,000) | (59,151,000) | (2,142,000) |
Income tax expense | (2,724,000) | (1,239,000) | 0 |
Loss after income tax expense for the year | (419,770,000) | (60,390,000) | (2,142,000) |
Items that may be reclassified subsequently to profit or loss | |||
Foreign currency translation | (23,553,000) | 1,313,000 | 546,000 |
Other comprehensive income/(loss) for the year, net of tax | (23,553,000) | 1,313,000 | 546,000 |
Total comprehensive loss for the year | $ (443,323,000) | $ (59,077,000) | $ (1,596,000) |
Basic earnings per share (in dollars per share) | $ (10.2530) | $ (2.9274) | $ (0.1329) |
Diluted earnings per share (in dollars per share) | $ (10.2530) | $ (2.9274) | $ (0.1329) |
Consolidated statements of fina
Consolidated statements of financial position - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Current assets | |||
Cash and cash equivalents | $ 109,970,000 | $ 38,990,000 | $ 1,956,000 |
Other receivables | 23,654,000 | 793,000 | 331,000 |
Prepayments and deposits | 26,630,000 | 647,000 | 283,000 |
Total current assets | 160,254,000 | 40,430,000 | 2,570,000 |
Non-current assets | |||
Property, plant and equipment | 247,562,000 | 15,935,000 | 8,038,000 |
Right-of-use assets | 1,253,000 | 1,404,000 | 397,000 |
Goodwill | 634,000 | 659,000 | 568,000 |
Deferred tax assets | 2,235,000 | 911,000 | 0 |
Mining hardware prepayments | 158,184,000 | 75,129,000 | 0 |
Other assets | 338,000 | 0 | 0 |
Total non-current assets | 410,206,000 | 94,038,000 | 9,003,000 |
Total assets | 570,460,000 | 134,468,000 | 11,573,000 |
Current liabilities | |||
Borrowings | 60,484,000 | 71,983,000 | 1,961,000 |
Embedded derivatives | 0 | 96,721,000 | 0 |
Income tax | 1,204,000 | 533,000 | 0 |
Employee benefits | 2,136,000 | 109,000 | 43,000 |
Trade and other payables | 18,813,000 | 1,118,000 | 751,000 |
Provisions | 2,469,000 | 0 | 0 |
Total current liabilities | 85,106,000 | 170,464,000 | 2,755,000 |
Non-current liabilities | |||
Borrowings | 47,803,000 | 11,840,000 | 0 |
Deferred tax liabilities | 189,000 | 1,618,000 | 0 |
Total non-current liabilities | 47,992,000 | 13,458,000 | 0 |
Total liabilities | 133,098,000 | 183,922,000 | 2,755,000 |
Equity | |||
Issued capital | 926,581,000 | 10,338,000 | 10,338,000 |
Reserves | (6,814,000) | 2,843,000 | 725,000 |
Accumulated losses | (482,405,000) | (62,635,000) | (2,245,000) |
Total equity/(deficit) | 437,362,000 | (49,454,000) | 8,818,000 |
Total liabilities and equity | $ 570,460,000 | $ 134,468,000 | $ 11,573,000 |
Consolidated statements of chan
Consolidated statements of changes in equity - USD ($) | Total | Issued Capital [Member] | Reserves [Member] | Accumulated Losses [Member] |
Balance at Jun. 30, 2019 | $ 1,745,000 | $ 1,848,000 | $ 0 | $ (103,000) |
Changes in equity [Abstract] | ||||
Loss after income tax expense for the year | (2,142,000) | 0 | 0 | (2,142,000) |
Other comprehensive income (loss) for the year, net of tax | 546,000 | 0 | 546,000 | 0 |
Total comprehensive income/(loss) for the year | (1,596,000) | 0 | 546,000 | (2,142,000) |
Transactions with owners in their capacity as owners: | ||||
Contributions of equity, net of transaction costs (note 21) | 2,394,000 | 2,394,000 | 0 | 0 |
Share-based payments (note 31) | 179,000 | 0 | 179,000 | 0 |
Conversion of SAFE notes (note 21) | 4,163,000 | 4,163,000 | 0 | 0 |
Shares issued as part of business combination | 1,933,000 | 1,933,000 | 0 | 0 |
Balance at Jun. 30, 2020 | 8,818,000 | 10,338,000 | 725,000 | (2,245,000) |
Changes in equity [Abstract] | ||||
Loss after income tax expense for the year | (60,390,000) | 0 | 0 | (60,390,000) |
Other comprehensive income (loss) for the year, net of tax | 1,313,000 | 0 | 1,313,000 | 0 |
Total comprehensive income/(loss) for the year | (59,077,000) | 0 | 1,313,000 | (60,390,000) |
Transactions with owners in their capacity as owners: | ||||
Share-based payments (note 31) | 805,000 | 0 | 805,000 | 0 |
Balance at Jun. 30, 2021 | (49,454,000) | 10,338,000 | 2,843,000 | (62,635,000) |
Changes in equity [Abstract] | ||||
Loss after income tax expense for the year | (419,770,000) | 0 | 0 | (419,770,000) |
Other comprehensive income (loss) for the year, net of tax | (23,553,000) | 0 | (23,553,000) | 0 |
Total comprehensive income/(loss) for the year | (443,323,000) | 0 | (23,553,000) | (419,770,000) |
Transactions with owners in their capacity as owners: | ||||
Share-based payments (note 31) | 13,896,000 | 0 | 13,896,000 | 0 |
Issue of ordinary shares (net of capital raise costs) (note 21) | 220,683,000 | 220,683,000 | 0 | 0 |
Conversion of hybrid financial instruments (note 21) | 695,383,000 | 695,383,000 | 0 | 0 |
Share-based payments, prepaid in advance (note 21) | 177,000 | 177,000 | 0 | 0 |
Balance at Jun. 30, 2022 | $ 437,362,000 | $ 926,581,000 | $ (6,814,000) | $ (482,405,000) |
Consolidated statements of cash
Consolidated statements of cash flows - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities | |||
Receipts from Bitcoin mining activities | $ 59,037,000 | $ 7,898,000 | $ 2,174,000 |
Payments for electricity, suppliers and employees (inclusive of GST) | (32,231,000) | (6,400,000) | (3,180,000) |
Total receipts (payments) | 26,806,000 | 1,498,000 | (1,006,000) |
Interest received | 4,000 | 6,000 | 3,000 |
Other income received | 0 | 590,000 | 16,000 |
Interest paid | (5,253,000) | (333,000) | 0 |
Net cash from/(used in) operating activities | 21,557,000 | 1,761,000 | (987,000) |
Cash flows from investing activities | |||
Payments for property, plant and equipment | (83,654,000) | (7,300,000) | (3,914,000) |
Prepayments for mining hardware | (210,593,000) | (73,815,000) | 0 |
Payments for right-of-use assets | 0 | 0 | (160,000) |
Prepayments and deposits | (22,038,000) | (250,000) | (149,000) |
Advancement of loan | (1,870,000) | 0 | 0 |
Proceeds from disposal of property, plant and equipment | 40,000 | 2,000 | 0 |
Net cash used in investing activities | (318,115,000) | (81,363,000) | (4,223,000) |
Cash flows from financing activities | |||
Proceeds from issue of shares | 0 | 0 | 2,684,000 |
Proceeds from hybrid financial instruments | 107,845,000 | 105,662,000 | 4,163,000 |
Capital raising costs | (4,212,000) | 0 | (290,000) |
Advance payment in relation to share-based payments | 0 | 0 | 168,000 |
Proceeds from mining hardware finance | 65,200,000 | 17,084,000 | 0 |
Repayment of borrowings | (12,120,000) | (2,118,000) | 0 |
Proceeds (net of underwriting fees) from Initial Public Offering | 215,331,000 | 0 | 0 |
Payment of borrowing transaction costs | 0 | (2,569,000) | 0 |
Repayment of lease liabilities | (6,000) | (34,000) | 0 |
Net cash from financing activities | 372,038,000 | 118,025,000 | 6,725,000 |
Net increase in cash and cash equivalents | 75,480,000 | 38,423,000 | 1,515,000 |
Cash and cash equivalents at the beginning of the financial year | 38,990,000 | 1,956,000 | 83,000 |
Effects of exchange rate changes on cash and cash equivalents | (4,500,000) | (1,389,000) | 358,000 |
Cash and cash equivalents at the end of the financial year | $ 109,970,000 | $ 38,990,000 | $ 1,956,000 |
General information
General information | 12 Months Ended |
Jun. 30, 2022 | |
General information [Abstract] | |
General information | Note 1. General information The 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 year (collectively, the ‘Group’). Iris Energy Limited was previously known as Iris Energy Pty Ltd until 7 October 2021, when it converted to an Australian public unlisted company limited by shares. 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 Level 12, 44 Market Street Level 13, 664 Collins Street Sydney NSW 2000 Docklands VIC 3008 Australia Australia The Group completed an initial public offering (‘IPO’) on 17 November 2021. The IPO was led by lead book-runners J.P. Morgan, Canaccord Genuity and Citigroup, and raised total gross proceeds of $231,538,468. The Group is an owner and operator of institutional-grade, highly efficient proprietary Bitcoin mining data centers powered by renewable energy. The consolidated financial statements were authorized for issue, in accordance with a resolution of Directors, on 13 September 2022. The Directors have the power to amend and reissue the consolidated financial statements. Reverse share split On 4 November 2021, the Company effected a 1-for- 5 5 |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Jun. 30, 2022 | |
Significant accounting policies [Abstract] | |
Significant accounting policies | Note 2. Significant accounting policies The principal accounting policies adopted in the preparation of the consolidated financial statements are set out below. 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 cashflows 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 year ended 30 June 2022, the Group incurred a loss after tax of $419,770,000 (2021: $60,390,000) and net operating cash inflows of $21,557,000 (2021: $1,761,000). As at 30 June 2022, the Group had net current assets of $75,148,000 (2021: net current liabilities of $130,034,000) and net assets of $437,362,000 (2021: net liabilities of $49,454,000). 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 Bitcoin’s 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 continued decline in the market price of Bitcoin, an increase in the difficulty of Bitcoin mining, changes in the regulatory environment 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 possible changes in 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 execute a business plan aimed at continued security, operational efficiency, revenue growth, improving overall mining profit, managing operating expenses and working capital requirements, maintaining capital expenditure optionality, and securing additional financing, as needed, through one or more debt and/or equity capital raisings. The Group can wind down its operations (including not acquiring any additional mining hardware and/or incurring the associated infrastructure growth capital expenditure) in the event of unfavourable pricing in Bitcoin. 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 considerations include: ● A base case scenario assuming current Bitcoin prices and global hashrate for the next 12 months, which has been considered at various bitcoin and hashrate scenarios; ● The completion of key construction projects including the commissioning of the 50MW site at Prince George, British Columbia, an additional 30MW at Mackenzie, British Columbia (currently 50MW capacity) and energization at Childress, Texas; ● As at 30 June 2022, the Group held $158,184,000 in prepayments made to Bitmain Technologies Limited (‘Bitmain’) for future mining hardware deliveries. $30,127,000 of this prepayment balance relates to a portion of deliveries assumed to increase the Group’s operating capacity to 4.3 EH/s by the end of the quarter ending 31 December 2022; ● On 1 August 2022, the Group announced that it had reached agreement with Bitmain to ship an additional 1.7 EH/s of miners, which is assumed to increase the Group’s operating capacity to 6.0 EH/s before the end of the fiscal year 2023. The agreement utilizes $46,006,000 (1) ● Utilization of the remaining $82,051,000 (2) ● The Group does not currently have any corporate level debt outstanding. For the purposes of this going concern assessment, all existing limited-recourse financing facilities are assumed to be repaid in line with the contractual terms. These key assumptions have been considered using a range of historic Bitcoin price and global hashrate scenarios. The Group aims to maintain a degree of flexibility in both operating and capital expenditure cashflow management where it practicably makes sense, including ongoing internal cashflow monitoring and projection analysis performed to identify potential liquidity risks arising and to be able to respond accordingly. 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. (1) The cash payment made by the Canadian subsidiary of the Group was $46,670,000. The retranslated balance of the prepayment as at 30 June 2022 is $46,006,000. (2) The cash payment made by the Canadian subsidiary of the Group was $83,340,000. The retranslated balance of the prepayment as at 30 June 2022 is $82,051,000. Basis of preparation These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (‘IFRS’) as issued by the International Accounting Standards Board (‘IASB’). Historical cost convention The consolidated financial statements have been prepared under the historical cost convention, except for the revaluation of financial assets and liabilities at fair value through profit or loss. Critical accounting estimates The preparation of the consolidated financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements, are disclosed in note 3. Principles of consolidation The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Iris Energy Limited as at 30 June 2022 and 30 June 2021 and the results of all subsidiaries for the years ended 30 June 2022, 30 June 2021, and 30 June 2020. Subsidiaries are all those entities over which the Group has control (as listed in note 28). The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases. Intercompany transactions, balances and unrealized gains on transactions between entities in the Group are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries align to the policies adopted by the Group. The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest, without the loss of control, is accounted for as an equity transaction, where the difference between the consideration transferred and the book value of the share of the non-controlling interest acquired is recognized directly in equity attributable to the parent. Where the Group loses control over a subsidiary, it derecognizes the assets including goodwill, liabilities and non-controlling interest in the subsidiary, together with any cumulative translation differences recognized in equity. The Group recognizes the fair value of the consideration received and the fair value of any investment retained together with any gain or loss in profit or loss. Operating segments Operating segments are presented using the ‘management approach’, where the information presented is on the same basis as the internal reports provided to the Chief Operating Decision Makers (‘CODM’). The CODM is responsible for the allocation of resources to operating segments and assessing their performance. Functional and presentation currency The Directors have elected to change the Group’s presentation currency from Australian dollars (‘A$’) to United States dollars (‘$’, ‘US$’ or ‘US dollars’) effective from 1 July 2021. The change in presentation currency is a voluntary change which is accounted for retrospectively. All other accounting policies are consistent with those adopted in the annual financial report for the year ended 30 June 2021. The consolidated financial statements have been restated to US dollars using the procedures outlined below: ● Statement of profit or loss and other comprehensive income and statement of cash flows for each Group entity have been consolidated into US dollars using average foreign currency rates prevailing for the relevant period. ● Assets and liabilities in the consolidated statement of financial position have been translated into US dollars at the closing foreign currency rates on the relevant balance sheet dates. ● The equity section of the consolidated statement of financial position, including foreign currency translation reserve, accumulated losses, issued capital and the other reserves, have been translated into US dollars using historical rates. ● Earnings per share and dividend disclosures have also been restated to US dollars to reflect the change in presentation currency. The functional currency of the Parent Entity is Australian dollars, whilst the presentation currency of the Group is now in US dollars. Some subsidiaries have a functional currency other than Australian dollars, which is translated to the presentation currency. Transactions in currencies other than an entity’s functional currency are initially recorded in the functional currency by applying the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in currencies other than an entity’s functional currency are retranslated at the foreign exchange rate ruling at the reporting date. Foreign exchange differences arising on translation are recognized in the statement of profit and loss. Non-monetary assets and liabilities that are measured in terms of historical cost in currencies other than an entity’s functional currency are translated using the exchange rate at the date of the initial transaction. Foreign operations The assets and liabilities of foreign operations are translated into US dollars using the relevant exchange rates at the reporting date. The revenues and expenses of foreign operations are translated into US dollars using the average exchange rates, which approximate the rates at the dates of the transactions, for the period. All resulting foreign exchange differences are recognized in other comprehensive income/(loss) through the foreign currency translation reserve in equity. The foreign currency translation reserve is recognized in profit or loss when the foreign operation or net investment is disposed of. Revenue and other income recognition The Group recognizes revenue and other income as follows: Revenue from contracts with customers Revenue is recognized at an amount that reflects the consideration to which the Group is expected to be entitled in exchange for transferring goods or services to a customer. For each contract with a customer, the Group: identifies the contract with a customer; identifies the performance obligations in the contract; determines the transaction price which takes into account estimates of variable consideration and the time value of money; allocates the transaction price to the separate performance obligations on the basis of the relative stand-alone selling price of each distinct good or service to be delivered; and recognizes revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of the goods or services promised. 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 In certain mining pools that, the Group participated in during the year ended 30 June 2020, the amount of reward for computing power depends on the pool’s success in mining blocks. In this type of pool, the total Bitcoin mined by the pool is distributed daily to the pool participant’s, net of the fees of the mining pool operator. In other pools that, the Group participated in during the years ended 30 June 2020, 30 June 2021 and 30 June 2022, the Group is not directly exposed to the pool’s success in mining blocks. The Group is rewarded in Bitcoin for the hashrate it contributes to these mining pools. The reward for the hashrate contributed by the Group is based on the current network difficulty and global daily revenues from transaction fees, less mining pool fees. Bitcoin mining revenue comprises of the block reward and transaction fees bundled together in a gross daily deposit of Bitcoin into the Group’s exchange wallet. Bitcoin received from the mining pool operator are remitted to the pool participants’ wallets net of the fees of the mining pool operator. The mining pool operator fees are reflected in the quantity of Bitcoin received by the Group and recorded as a reduction in Bitcoin mining revenue. The Group measures the non-cash consideration received at the fair market value of the Bitcoin received. Management estimates fair value, on a daily basis, as the quantity of Bitcoin received multiplied by the price quoted on www.coinmarketcap.com (‘Coinmarketcap’) on the day it was received. Management considers the prices quoted on Coinmarketcap to be a level 1 input under IFRS 13 Fair Value Measurement. The Group did not hold any Bitcoin on hand as at 30 June 2022 (30 June 2021: Nil Other income Other income is recognized when it is received or when the right to receive payment is established. Income tax The income tax expense for the period is the tax payable on that period’s taxable income based on the applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary differences, unused tax losses and the adjustment recognized for prior periods, where applicable. Deferred tax assets and liabilities are recognized for temporary differences at the tax rates expected to be applied when the assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for: ● when the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor taxable profits; or ● when the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets are recognized for deductible temporary difference only if the Group considers it probable that future taxable amounts will be available to utilize those temporary differences and losses. The carrying amount of recognized and unrecognized deferred tax assets are reviewed at each reporting date. Deferred tax assets recognized are reduced to the extent that it is no longer probable that future taxable profits will be available for the carrying amount to be recovered. Previously unrecognized deferred tax assets are recognized to the extent that it is probable that there are future taxable profits available to recover the asset. Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on either the same taxable entity or different taxable entities which intend to settle simultaneously. Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, and the amount and timing of future taxable income. These uncertainties may require management to adjust expectations based on changes in circumstances, which may impact the amount of deferred tax assets and deferred tax liabilities recognized in the statement of financial position and the amount of other tax losses and temporary differences not recognized. In such circumstances, some or all of the carrying amounts of recognized deferred tax assets and liabilities may require adjustment, resulting in a corresponding credit or charge to the consolidated statement of profit or loss and other comprehensive income/(loss). Current and non-current classification Assets and liabilities are presented in the consolidated statement of financial position based on current and non-current classification. An asset is classified as current when it is either expected to be realized or intended to be sold or consumed in the Group’s normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realized within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current. A liability is classified as current when it is either expected to be settled in the Group’s normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-current. Deferred tax assets and liabilities are always classified as non-current. Cash and cash equivalents Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Other receivables Other receivables are recognized at amortized cost, less any allowance for expected credit losses. Investments and other financial assets Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the initial measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently measured at either amortized cost or fair value depending on their classification. Classification is determined based on both the business model within which such assets are held and the contractual cash flow characteristics of the financial asset unless an accounting mismatch is being avoided. Financial assets are derecognized when the rights to receive cash flows have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership. When there is no reasonable expectation of recovering part or all of a financial asset, its carrying value is written off. Financial assets at amortized cost A financial asset is measured at amortized cost only if both of the following conditions are met: (i) it is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and (ii) the contractual terms of the financial asset represent contractual cash flows that are solely payments of principal and interest. Impairment of financial assets The Group recognizes a loss allowance for expected credit losses on financial assets which are either measured at amortized cost or fair value through other comprehensive income. The measurement of the loss allowance depends upon the Group’s assessment at the end of each reporting period as to whether the financial instrument’s credit risk has increased significantly since initial recognition, based on reasonable and supportable information that is available, without undue cost or effort to obtain. Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month expected credit loss allowance is estimated. This represents a portion of the asset’s lifetime expected credit losses that is attributable to a default event that is possible within the next 12 months. Where a financial asset has become credit impaired or where it is determined that credit risk has increased significantly, the loss allowance is based on the asset’s lifetime expected credit losses. The amount of expected credit loss recognized is measured on the basis of the probability weighted present value of anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate. Property, plant and equipment Property, plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment (excluding land) over their expected useful lives as follows: Buildings 20 years Plant and equipment 3-7 years Mining hardware 4 years The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. An item of property, plant and equipment is derecognized upon disposal or when there is no future economic benefit to the Group. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss. Assets under construction consist of capitalized site preparation fees and buildings (including data centers) currently being built. Assets under construction are not depreciated until they are available for use. Once an asset becomes available for use, it is transferred to another category within property, plant and equipment and depreciated over its useful economic life. Mining hardware includes both installed hardware units and units that have been delivered but are in storage, yet to be installed. Depreciation of mining hardware commences once units are onsite and available for use. Repair and maintenance costs incurred in connection with planned major maintenance activities are expensed to ‘other expenses’ in profit or loss. Leases The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Group applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. A right-of-use asset is recognized at the commencement date of a lease. The right-of-use asset is measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of the right-of-use assets includes the amount of the lease liability recognized, adjusted for, as applicable, any lease payments made at or before the commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in the cost of inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and restoring the site or asset. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets. At the commencement date of the lease, the Group recognizes lease liabilities measured at the present value of the lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amount expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating the lease, if the lease term reflects the Group exercising the option to terminate. In calculating the present value of the lease payments, the Group uses the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate. Variable lease payments that depend on an index or rate are included in the lease liability, measured using the index or rate as at the date of recognition. The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g. changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset. The Group has applied judgement to determine the lease term for contracts which include renewal and termination options. Goodwill Goodwill arises on the acquisition of a business. Goodwill is not amortized. Instead, goodwill is tested annually for impairment, or more frequently if events or changes in circumstances indicate that it might be impaired, and is carried at cost less accumulated impairment losses. Impairment losses on goodwill are taken to profit or loss and are not subsequently reversed. Impairment of assets At the end of the reporting period, property, plant and equipment, goodwill and right-of-use assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset (or cash generating units) is estimated and compared with its carrying amount. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount, where the recoverable amount is the higher of an asset’s fair value less costs of disposal (‘FVLCOD’) or the value in use (‘VIU’). In assessing FVLCOD or VIU, the estimated future cash flows of the asset are discounted to their present value using a discount rate that reflects the risks specific to the asset or the cash-generating unit (‘CGU’) to which the asset belongs and relevant market assessments. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (CGU). Trade and other payables These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year and which are unpaid. Due to their short-term nature, they are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition. Borrowings Loans and borrowings are initially recognized at the fair value of the consideration received, net of transaction costs. They are subsequently measured at amortized cost using the effective interest method. Hybrid financial instruments (SAFE and convertible notes) Hybrid financial instruments are separated into the host liability and embedded derivative components based on the terms of the agreement. On issuance, the liability component of the hybrid financial instrument is initially recognized at the fair value of a similar liability that does not have an equity conversion option. The embedded derivative component is initially recognized at fair value and changes in the fair value are recorded in profit or loss. The host debt is carried at amortized cost using the effective interest method until it is extinguished on conversion or redemption. Any directly attributable transaction costs are allocated to the liability and embedded derivative components in proportion to their initial carrying amount. De-recognition of financial liabilities The Group de-recognizes financial liabilities when, and only when, the Group’s obligations are discharged, cancelled or they expire. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized in profit or loss. Finance costs Finance costs attributable to qualifying assets are capitalized as part of the asset. All other finance costs are expensed using the effective interest rate method. Provisions Provisions are recognized when the Group has a present (legal or constructive) obligation as a result of a past event, it is probable the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. If the time value of money is material, provisions are discounted using a current pre-tax rate specific to the liability. The increase in the provision resulting from the passage of time is recognized as a finance cost. Employee benefits Short-term employee benefits Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled. Share-based payments Equity-settled share-based compensation benefits are provided to employees. Equity-settled transactions are awards of shares, or options over shares and restricted stock units, that are provided to employees in exchange for the rendering of services. The cost of equity-settled transactions is measured at fair value on grant date. Fair value is independently determined using the Black-Scholes-Merton option pricing model and Monte-Carlo simulations which take into account the exercise price, the term of the option, the impact of dilution, the share price at grant date, expected price volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term of the option, together with non-vesting conditions that do not determine whether the Group receives the services that entitle the employees to receive payment. The cost of equity-settled transactions is recognized as an expense with a corresponding increase in equity over the vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognized in profit or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognized in previous periods. Market conditions are taken into consideration in determining fair value. Therefore, any awards subject to market conditions are considered to vest irrespective of whether or not that market condition has been met, provided all other conditions are satisfied. If equity-settled awards are modified, as a minimum, an expense is recognized as if the modification has not been made. An additional expense is recognized, over the remaining vesting period, for any modification that increases the total fair value of the share-based compensation benefit as at the date of modification. |
Critical accounting judgements,
Critical accounting judgements, estimates and assumptions | 12 Months Ended |
Jun. 30, 2022 | |
Critical accounting judgements, estimates and assumptions [Abstract] | |
Critical accounting judgements, estimates and assumptions | Note 3. Critical accounting judgements, estimates and assumptions The preparation of the consolidated financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the consolidated financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed below. Share-based payment transactions The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined by using the Black-Scholes-Merton option-pricing model and Monte-Carlo simulations which take into account the terms and conditions upon which the instruments were granted. Management has exercised its best judgements in determining the key inputs for the valuation models used, which includes volatility, grant-date share price, expected term and the risk-free rate. Please refer to note 31 for the key assumptions. Estimation of useful lives of assets The Group determines the estimated useful lives and related depreciation and amortization charges for its property, plant and equipment. The useful lives could change significantly as a result of technical innovations or some other event. The depreciation and amortization charge will increase where the useful lives are less than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold, will be written off or written down. Impairment of non-financial assets other than goodwill The Group assesses impairment of non-financial assets other than goodwill at each reporting date by evaluating conditions specific to the Group and to the particular asset that may lead to impairment. If an impairment trigger exists, the recoverable amount of the asset is determined. This involves assessing the value of the asset at FVLCOD or using VIU models, which incorporate a number of key estimates and assumptions. For the year ended 30 June 2022, the Group recorded an impairment of $167,000 on right- of-use assets held in relation to prepaid hosting fees. For the year ended 30 June 2021, the Group recorded an impairment of $432,000 on buildings and mining hardware assets. No triggers existed at the reporting date which suggested any additional impairment of assets was necessary. Deferred tax Deferred tax assets relating to temporary differences and unused tax losses are recognized only to the extent that it is probable that the future taxable profit will be available against which the benefits of the deferred tax can be utilized. At the reporting date, deferred tax assets have only been recognized to the extent of deferred tax liabilities if they are related to the same tax jurisdiction. Deferred tax assets in relation to losses have not been recognized in the consolidated statement of financial position and will not be recognized until such time when there is more certainty in relation to the availability of future taxable profits. Income tax Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, and the amount and timing of future taxable income. These uncertainties may require management to adjust expectations based on changes in circumstances, which may impact the amount of deferred tax assets and deferred tax liabilities recognized in the consolidated statement of financial position and the amount of other tax losses and temporary differences not yet recognized. In such circumstances, some or all of the carrying amounts of recognized deferred tax assets and liabilities may require adjustment, resulting in a corresponding credit or charge to profit or loss or other comprehensive income/(loss). |
Operating segments
Operating segments | 12 Months Ended |
Jun. 30, 2022 | |
Operating segments [Abstract] | |
Operating segments | Note 4. Operating segments Identification of reportable operating segments The Group consists of a single Major customers The Group generated 100% of Bitcoin mining revenues (2021: 100%, 2020: 100%) through the provision of computing power to two Bitcoin mining pools (2021: three, 2020: two) for the year ended 30 June 2022. |
Other income
Other income | 12 Months Ended |
Jun. 30, 2022 | |
Other income [Abstract] | |
Other income | Note 5. Other income Consolidated Year ended 30 June 2022 Year ended 30 June 2021 (restated*) Year ended 30 June 2020 (restated*) US$’000 US$’000 US$’000 Net gain on disposal of property, plant and equipment 12 - - Government grants - 165 - Insurance recoveries - 418 16 Proceeds from the issuance of options to Executive Directors - 7 - 12 590 16 Insurance proceeds were received during the years ended 30 June 2021 and 30 June 2020 in relation to a building fire from an adjacent property at the Group’s Canal Flats, British Columbia site in 2020. |
Depreciation
Depreciation | 12 Months Ended |
Jun. 30, 2022 | |
Depreciations [Abstract] | |
Depreciation | Note 6. Depreciation Consolidated Year ended 30 June 2022 Year ended 30 June 2021 (restated*) Year ended 30 June 2020 (restated*) US$’000 US$’000 US$’000 Depreciation of property, plant and equipment 7,682 1,209 727 Depreciation of right-of-use assets 59 43 30 7,741 1,252 757 |
Other operating expenses
Other operating expenses | 12 Months Ended |
Jun. 30, 2022 | |
Other operating expenses [Abstract] | |
Other operating expenses | Note 7. Other operating expenses Consolidated Year ended 30 June 2022 Year ended 30 June 2021 (restated*) Year ended 30 June 2020 (restated*) US$’000 US$’000 US$’000 Insurance 5,065 95 44 Advertising, marketing and sponsorship 305 29 7 Office rental and expenses 177 92 18 Site expenses 1,644 170 30 Charitable donations 464 - - Filing fees 462 1 - Site identification costs 258 - - Non-refundable sales tax 2,469 - - Other expenses 861 79 84 11,705 466 183 |
Finance expense
Finance expense | 12 Months Ended |
Jun. 30, 2022 | |
Finance expense [Abstract] | |
Finance expense | Note 8. Finance expense Consolidated Year ended 30 June 2022 Year ended 30 June 2021 (restated*) Year ended 30 June 2020 (restated*) US$’000 US$’000 US$’000 Interest expense on borrowings 5,343 311 102 Interest expense on hybrid financial instruments 26,748 14,182 - Interest expense on lease liabilities 99 22 - Amortization of capitalized borrowing costs 2,508 1,968 - Loss on embedded derivatives held at fair value through profit or loss 390,743 44,692 - 425,441 61,175 102 |
Income tax expense
Income tax expense | 12 Months Ended |
Jun. 30, 2022 | |
Income tax expense [Abstract] | |
Income tax expense | Note 9. Income tax expense Consolidated Year ended Year ended 30 June 2021 (restated*) Year ended 30 June 2020 (restated*) US$’000 US$’000 US$’000 Numerical reconciliation of income tax expense and tax at the statutory rate Loss before income tax expense (417,046 ) (59,151 ) (2,142 ) Tax at the statutory tax rate of 30% (2021: 26%, 2020: 27.5%) (125,114 ) (15,379 ) (589 ) Tax effect amounts which are not deductible/(taxable) in calculating taxable income: Non-deductible/non-allowable items 128,643 16,061 58 3,529 682 (531 ) Current year tax losses not recognized 534 704 416 Recognition of previously unrecognized tax losses (1,019 ) (240 ) - Difference in overseas tax rates 203 (3 ) (4 ) Impact of future tax rate changes - 94 16 Current year temporary differences not recognized - 2 103 Prior year current tax under/(over) provision (523 ) - - Income tax expense 2,724 1,239 - Consolidated Year ended 30 June 2022 Year ended 30 June 2021 (restated*) Year ended 30 June 2020 (restated*) US$’000 US$’000 US$’000 Income tax expense Current tax 672 532 - Deferred tax 2,052 707 - Income tax expense 2,724 1,239 - The Group’s statutory tax rate is determined by the parent entity’s statutory tax rate. Iris Energy Limited is the ultimate parent entity incorporated in Australia. For the years ended 30 June 2020 and 30 June 2021, Iris Energy Limited was considered a Base Rate Entity (‘BRE’) under Australian tax legislation with a statutory tax rate of 27.5% and 26% respectively. For the year ended 30 June 2022, the Group’s aggregated turnover exceeded the BRE threshold of $34,474,000 (A$50,000,000) and is therefore subject to a statutory tax rate of 30%. Unrecognized deferred tax assets Consolidated 30 June 2022 30 June 2021 (restated*) 30 June 2020 (restated*) US$’000 US$’000 US$’000 Available tax losses 19,268 7,239 4,065 Tax effect at the applicable tax rate for each jurisdiction 5,117 1,887 1,021 Deferred tax asset on tax losses recognized to the extent of taxable temporary differences 3,854 798 649 Deferred tax asset on losses not recognized 1,263 1,089 372 The total available tax losses above have not been recognized in the consolidated statement of financial position. These tax losses can only be utilized against availability of future available profits. These tax losses are not expected to expire. Recognized deferred tax assets and liabilities on the consolidated statement of financial position The following are the major deferred tax assets and liabilities recognised by the Group and movements thereon during the current and prior reporting period. Deferred tax assets Tax losses Employee benefits Property, plant and equipment Unrealized foreign exchange losses Capital raising costs Other deferred tax assets Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 As at 1 July 2020 - - - - - - - Credit/(charge) to profit or loss 798 31 - - 82 - 911 Credit direct to equity - - - - - - - As at 30 June 2021 (*restated) 798 31 - - 82 - 911 Credit/(charge) to profit or loss 3,056 82 15 725 (260 ) 1,222 4,840 Credit direct to equity - - - - 4,805 - 4,805 3,854 113 15 725 4,627 1,222 10,556 Offset against deferred tax liability (8,321 ) As at 30 June 2022 2,235 Deferred tax liabilities Property, plant and equipment Unrealized foreign exchange gains Other deferred tax liabilities Total US$'000 US$'000 US$'000 US$'000 As at 1 July 2020 - - - - Credit/(charge) to profit or loss (798 ) (820 ) - (1,618 ) Credit direct to equity - - - - As at 30 June 2021 (*restated) (798 ) (820 ) - (1,618 ) Credit/(charge) to profit or loss (3,894 ) (2,651 ) (347 ) (6,892 ) Credit direct to equity - - - - (4,692 ) (3,471 ) (347 ) (8,510 ) Offset against deferred tax asset 8,321 As at 30 June 2022 (189 ) The deferred tax assets balance increased by $9,645,000 during the year ended 30 June 2022. $4,840,000 of this increase, has been recorded in the consolidated statement of profit or loss. The remaining movement of $4,805,000 is a deferred tax asset recognised on the IPO underwriting fees and associated capital raising costs which are recorded directly in equity. The deferred tax liabilities balance increased by $6,892,000 during the year ended 30 June 2022. This movement has been recorded in the consolidated statement of profit or loss. In accordance with the Group's income tax accounting policy (see note 2), the deferred tax assets and liabilities balances have been offset. The remaining net deferred tax assets and liabilities balances of $2,235,000 and $189,000 respectively have been recorded on the consolidated statement of financial position as at 30 June 2022. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Jun. 30, 2022 | |
Cash and cash equivalents [Abstract] | |
Cash and cash equivalents | Note 10. Cash and cash equivalents Consolidated 30 June 2022 30 June 2021 (restated*) US$’000 US$’000 Current assets Cash at bank 109,970 38,990 |
Other receivables
Other receivables | 12 Months Ended |
Jun. 30, 2022 | |
Other receivables [Abstract] | |
Other receivables | Note 11. Other receivables Consolidated 30 June 2022 30 June 2021 (restated*) US$’000 US$’000 Current assets Other receivables 1 55 Loan receivable 2,320 - Provincial sales tax receivable 10,023 - Interest receivable 75 1 GST receivable 11,235 737 23,654 793 |
Mining hardware prepayments
Mining hardware prepayments | 12 Months Ended |
Jun. 30, 2022 | |
Mining hardware prepayments [Abstract] | |
Mining hardware prepayments | Note 12. Mining hardware prepayments Consolidated 30 June 2022 30 June 2021 (restated*) US$’000 US$’000 Non-current assets Mining hardware prepayments 158,184 75,129 Mining hardware prepayments represent payments made by the Group for the purchase of mining hardware that is yet to be delivered. These prepayments are in accordance with payment schedules set out in relevant purchase agreements with hardware manufacturers. Certain subsidiaries of the Group have entered into three binding hardware purchase agreements with Bitmain. The first two agreements relate to hardware that is expected to enable the Group to achieve 4.3 EH/s of operating capacity. The third agreement is a $400,000,000 hardware purchase agreement for approximately 10 EH/s of miners. On 1 August 2022, the Group announced that it had reached agreement with Bitmain to ship an additional 1.7 EH/s of miners under the third agreement, which is expected to increase the Group’s operating capacity to 6.0 EH/s. As at 30 June 2022, the Group held $158,184,000 in prepayments made to Bitmain for future mining hardware deliveries. $76,133,000 of this balance relates to deliveries expected to be installed during the year ended 30 June 2023 which are expected to take the Group’s operating capacity to 6.0 EH/s. The remaining $82,051,000 of the $158,184,000 held as at 30 June 2022, relates to future deliveries beyond the expected operating capacity of 6.0 EH/s (in respect of 25% of the purchase price of the respective batches under the third hardware purchase agreement referenced above). The relevant subsidiary of the Group has not made all recent scheduled payments under this contract and does not currently expect to make upcoming payments in respect of any such additional future deliveries under this contract. Utilization of the $82,051,000 of prepayments, continue to be subject to ongoing discussions with Bitmain. Under the third Bitmain contract, if the relevant subsidiary fails to pay the remaining commitments as and when they become due (and fail to make a written request to Bitmain no less than five business days prior to the relevant deadline and obtain Bitmain’s written consent), Bitmain is entitled to terminate the shipment of the respective batch of equipment and that subsidiary will be liable for reasonable, non-penalty liquidated damages of 20% of the purchase price of such batch. If there is any remaining balance after deducting the non-penalty liquidated damages from prepayments made under this contract, such remaining balance will be refunded free of any interest. If the relevant subsidiary fails to pay down payments due under this contract by the prescribed deadlines it may also be responsible for any loss incurred by Bitmain in relation to the production or procurement of that relevant batch of mining hardware. See note 2 and 34 for further information. |
Prepayments and deposits
Prepayments and deposits | 12 Months Ended |
Jun. 30, 2022 | |
Prepayments and deposits [Abstract] | |
Prepayments and deposits | Note 13. Prepayments and deposits Consolidated 30 June 2022 30 June 2021 (restated*) US$’000 US$’000 Current assets Security deposits 18,972 155 Prepayments 7,658 492 26,630 647 |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Jun. 30, 2022 | |
Property, plant and equipment [Abstract] | |
Property, plant and equipment | Note 14. Property, plant and equipment Consolidated 30 June 2022 30 June 2021 (restated*) US$’000 US$’000 Non-current assets Land – at cost 1,836 403 Buildings – at cost 13,768 3,511 Less: Accumulated depreciation (686 ) (231 ) 13,082 3,280 Plant and equipment – at cost 3,564 2,844 Less: Accumulated depreciation (364 ) (157 ) 3,200 2,687 Mining hardware – at cost 171,120 5,448 Less: Accumulated depreciation (7,973 ) (1,181 ) Less: Impairment - (346 ) 163,147 3,921 Assets under construction – at cost 66,297 5,644 247,562 15,935 Reconciliations Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below: Land Buildings Plant and equipment Mining hardware Assets under construction Total Consolidated US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 Balance as at 1 July 2020 166 3,085 1,275 3,512 - 8,038 Additions 229 150 1,371 1,653 5,550 8,953 Disposals - - (2 ) (202 ) - (204 ) Exchange differences 8 293 161 233 94 789 Impairment of assets - (79 ) - (353 ) - (432 ) Depreciation expense (note 6) - (169 ) (118 ) (922 ) - (1,209 ) Balance as at 30 June 2021 403 3,280 2,687 3,921 5,644 15,935 Additions 1,466 10,603 844 168,899 61,650 243,462 Disposals - - - (28 ) - (28 ) Exchange differences (33 ) (330 ) (114 ) (2,651 ) (997 ) (4,125 ) Depreciation expense (note 6) - (471 ) (217 ) (6,994 ) - (7,682 ) Balance as at 30 June 2022 1,836 13,082 3,200 163,147 66,297 247,562 Mining hardware includes both installed hardware units and units that have been delivered but are in storage, yet to be installed. Depreciation of mining hardware commences once units are installed onsite and available for use. Assets under construction includes costs related to sites at Mackenzie and Prince George in British Columbia and Childress, Texas. |
Right-of-use assets
Right-of-use assets | 12 Months Ended |
Jun. 30, 2022 | |
Right-of-use assets [Abstract] | |
Right-of-use assets | Note 15. Right-of-use assets Consolidated 30 June 2022 30 June 2021 (restated*) US$’000 US$’000 Non-current assets Land and buildings – right-of-use asset 1,309 1,051 Less: Accumulated depreciation (56 ) (8 ) 1,253 1,043 Prepaid hosting fees right-of-use asset - 431 Less: Accumulated depreciation - (70 ) - 361 1,253 1,404 Reconciliations Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below: Prepaid Land and buildings Total Consolidated US$’000 US$’000 US$’000 Balance as at 1 July 2020 397 - 397 Additions - 1,038 1,038 Exchange differences - 12 12 Depreciation (note 6) (36 ) (7 ) (43 ) Balance as at 30 June 2021 361 1,043 1,404 Additions - 298 298 Disposals (185 ) - (185 ) Exchange differences - (38 ) (38 ) Impairment of assets (167 ) - (167 ) Depreciation (note 6) (9 ) (50 ) (59 ) Balance as at 30 June 2022 - 1,253 1,253 The prepaid hosting fee right-of-use asset for a facility based in USA has been impaired as the Group is focused on executing its strategy to build, own and operate data centers. The contract was terminated during the year ended 30 June 2022. The land right-of-use asset represents a 30-year lease of a site in Prince George, British Columbia, Canada, as well as a 3-year lease of a corporate office in Sydney, Australia. The Group has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a term of 12 months or less, and leases of low value assets. The Group recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term. |
Goodwill
Goodwill | 12 Months Ended |
Jun. 30, 2022 | |
Goodwill [Abstract] | |
Goodwill | Note 16. Goodwill Consolidated 30 June 2022 30 June 2021 (restated*) US$’000 US$’000 Non-current assets Goodwill – at cost 634 659 Reconciliations of the goodwill balance at the beginning and end of the current and previous financial year is set out below: Consolidated Goodwill US$’000 Balance as at 1 July 2020 568 Exchange differences 91 Balance as at 30 June 2021 659 Exchange differences (25 ) Balance as at 30 June 2022 634 The Group operates as a single The recoverable amount of the CGU is based on ‘value in use’ calculations, determined by discounting the future cash flows to be generated from continuing the use of the CGU. Cash flow projections have been based on management’s best estimates covering a three-year period. Cashflows beyond this three-year period are extrapolated using a growth rate of 2.5%. The growth rate does not exceed the long-term average growth rate for the business. The Group has applied post-tax discount rates to discount the forecast future attributable post-tax cash flows. The equivalent pre-tax discount rate used to present value the cash flow projections was 23.5%. Management determined that the Group’s carrying value was supported by its recoverable amount and no impairment exists at the reporting date. In forecasting cash flows over the three-year period, management has assumed bitcoin price and global hashrate based on historic data, completion of key construction sites within the Group, increasing the expected operating hashrate to 6.0 EH/s before the end of the fiscal year 2023 and electricity costs remain within the current regulated levels in British Columbia, Canada and at forecasted external market pricing in unregulated markets. |
Borrowings
Borrowings | 12 Months Ended |
Jun. 30, 2022 | |
Borrowings [Abstract] | |
Borrowings | Note 17. Borrowings Consolidated 30 June 2022 30 June 2021 (restated*) US$’000 US$’000 Current liabilities Mining hardware finance 61,988 7,163 Capitalized borrowing costs – mining hardware finance (1,774 ) (1,116 ) Mining hardware finance accrued interest 189 - SAFE - 3,130 Convertible notes - 63,715 Capitalized borrowing costs – convertible notes - (914 ) Lease liability 81 5 60,484 71,983 Non-current liabilities Mining hardware finance 47,421 12,189 Capitalized borrowing costs – mining hardware finance (803 ) (1,353 ) Lease liability 1,185 1,004 47,803 11,840 108,287 83,823 Refer to note 25 for further information on financial instruments. Mining hardware finance During the year ended 30 June 2021, certain subsidiaries within the Group entered into limited recourse equipment financing and security agreements pursuant to which various mining hardware was financed. These facilities carry an annual contractual interest rate of 12% and are denominated in United States dollars. The facilities are repaid through blended monthly payments of interest and principal with the final payment due to the financier on 25 September 2023 On 24 March 2022, a subsidiary within the Group entered into a $71,196,000 limited recourse equipment finance and security agreement with NYDIG ABL LLC. The facility has a contractual term of 25 months and is secured by 19,800 Bitmain S19j Pro miners (1.98 EH/s) with an applicable interest rate of 11% per annum. The facilities are repaid through blended monthly payments of principal and interest with the final payment due April 2024. All of the mining hardware facilities held by the Group are contracted directly between the third-party financier and the relevant Canadian subsidiaries of the Group. SAFE During the year ended 30 June 2021, on 28 October 2020, the Group entered into a Simple Agreement for Future Equity (‘SAFE’) with a total face value of $2,955,000 and a maturity term of 12 months. The SAFE instruments were to be settled at the earlier of an exit event (being a listing, a share sale or the sale of all or substantially all the assets of the Company) or maturity. Upon initial recognition, an embedded derivative was recognized separately as a derivative liability at fair value (see note 18). Convertible notes On 5 January 2021, the Group issued convertible notes with a total face value of $19,606,000. These notes had a maturity term of 12 months and an annual contractual interest rate of 12%. Upon initial recognition, an embedded derivative was recognized separately as a derivative liability at fair value (see note 18). On 1 April 2021, the Group issued convertible notes with a total face value of $83,345,000. These notes had maturity term of 12 months and an annual contractual interest rate of 12%. Upon initial recognition, an embedded derivative was recognized separately as a derivative liability at fair value (see note 18). On 8 October 2021, the Group issued convertible notes with a total face value of $111,484,000. These notes had maturity term of 12 months and annual contractual All SAFE and convertible note instruments issued by the Group mandatorily converted to ordinary shares on 16 November 2021 immediately prior to the IPO on 17 November 2021. The Group was obliged to repay the notes and accrued interest in cash on maturity, if the notes had not been converted into ordinary shares. See note 21 for further details. Lease liabilities A lease liability has been recognized in relation to a 30-year lease of a site in Prince George, British Columbia, Canada which was entered into in March 2021. Another has been recognized in relation to a 3-year lease of a corporate office site in Sydney, Australia which was entered into in May 2022. |
Embedded derivatives
Embedded derivatives | 12 Months Ended |
Jun. 30, 2022 | |
Embedded derivatives [Abstract] | |
Embedded derivatives | Note 18. Embedded derivatives Consolidated 30 June 2022 30 June 2021 (restated*) US$’000 US$’000 Current liabilities held at fair value through profit or loss Embedded derivative – SAFE (issued 28 October 2020) - 7,424 Embedded derivative – convertible note (issued 5 January 2021) - 51,307 Embedded derivative – convertible note (issued 1 April 2021) - 37,990 - 96,721 All SAFE and convertible note instruments issued by the Group converted to ordinary shares on 16 November 2021 immediately prior to the IPO on 17 November 2021. Refer to note 25 for further information on financial instruments. Refer to note 26 for further information on fair value measurement. |
Provisions
Provisions | 12 Months Ended |
Jun. 30, 2022 | |
Provisions [Abstract] | |
Provisions | Note 19. Provisions Consolidated 30 June 2022 30 June 2021 (restated*) US$’000 US$’000 Current liabilities Provision for non-refundable sales tax 2,469 - Non-Refundable Sales Tax The Canada Revenue Agency (‘CRA’) is currently conducting an audit of input tax credits (‘ITCs’) claimed by several of the Group’s Canadian subsidiaries during the period October 2019 to December 2021. The CRA has issued an assessment in relation to one of the entities which, the Directors believe would be applied across the Group’s Canadian subsidiaries. Under the proposed decision, the CRA has noted that ITCs claimed by the Group would be allowed. However, the Canadian subsidiaries would also be required to remit an amount of 5% on services exported to the Australian parent under an intercompany service agreement. The export of services typically attract a 0% rate of GST in Canada. If GST were to apply to these services at a rate of 5%, the Australian parent may not be permitted to recover this tax. The Group has submitted additional information to the CRA to further support the ITCs claimed and the 0% rate applied to the exported services and will consider proceeding with an administrative appeal process. A s The Group has no other provisions as at 30 June 2022 (30 June 2021: Nil |
Trade and other payables
Trade and other payables | 12 Months Ended |
Jun. 30, 2022 | |
Trade and other payables [Abstract] | |
Trade and other payables | Note 20. Trade and other payables Consolidated 30 June 2022 30 June 2021 (restated*) US$'000 US$'000 Current liabilities Trade payables 13,230 545 Other payables 197 99 Advance payment in relation to share-based payments - 183 Accrued expenses 5,386 291 18,813 1,118 |
Issued capital
Issued capital | 12 Months Ended |
Jun. 30, 2022 | |
Issued capital [Abstract] | |
Issued capital | Note 21. Issued capital Consolidated 30 June 2022 30 June 2021 30 June 2022 30 June 2021 (restated*) Shares Shares US$’000 US$’000 Ordinary shares – fully paid and unrestricted 53,028,867 19,828,593 926,581 10,338 Movements in ordinary share capital Details Date Shares US$’000 Balance 1 July 2020 19,828,593 10,338 Balance 1 July 2021 19,828,593 10,338 Conversion of hybrid financial instruments 16 November 2021 24,835,118 695,383 Ordinary shares issued (IPO) 17 November 2021 8,269,231 231,539 Share-based payments, prepaid in advance 31 December 2021 95,925 177 IPO capital raise costs, net of tax - (10,856 ) Balance 30 June 2022 53,028,867 926,581 Ordinary shares Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the Company in proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the Company does not have a limited amount of authorized capital. Initial Public offering The Company listed its 55,036,108 ordinary shares on Nasdaq as part of an IPO on 17 November 2021. 8,269,231 ordinary shares were issued as part of this offering at a price of $28.00. Total proceeds (net of underwriting fees) of $215,330,775 were raised by the Group as part of this offering. Conversion of hybrid financial instruments On 16 November 2021, immediately prior to the IPO on 17 November 2021, all hybrid financial instruments (convertible notes and simple agreement for future equity ‘SAFE’) converted to equity in accordance with the underlying deeds. 24,835,118 ordinary shares were issued to noteholders on conversion of these instruments, resulting in a corresponding increase in issued capital of $695,383,000 (based on a conversion share price fair value of $28.00 on 16 November 2021). As at 30 June 2022, there are no outstanding convertible instruments issued by the Group. Share based payments, prepaid in advance During the year ended 30 June 2020, the Company issued 95,925 restricted share-based payments, prepaid in advance. The restrictions on these shares expired on 31 December 2021 with the corresponding liability converting to equity. As at 30 June 2022, there are no restricted share-based payments, prepaid in advance (30 June 2021: 95,925). Loan-funded shares As at 30 June 2022, there are 1,954,049 (30 June 2021: 2,260,614) restricted ordinary shares issued to management under the Employee Share Plan as well as certain non-employee founders of Podtech Innovation Inc. The total number of ordinary shares outstanding (including the restricted shares) is 54,982,916 as at 30 June 2022 (30 June 2021: 22,089,207). Capital risk management The Group’s objectives when managing capital is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Capital is regarded as total equity, as recognized in the consolidated statement of financial position, plus net debt. Net debt is calculated as total borrowings less cash and cash equivalents. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, issue new debt or sell assets to reduce debt. |
Reserves
Reserves | 12 Months Ended |
Jun. 30, 2022 | |
Reserves [Abstract] | |
Reserves | Note 22. Reserves Consolidated 30 June 2022 30 June 2021 (restated*) US$’000 US$’000 Foreign currency translation reserve (21,014 ) 1,851 Share-based payments reserve 14,200 992 (6,814 ) 2,843 Foreign currency translation reserve The reserve is used to recognize exchange differences arising from the translation of the financial statements of foreign operations to United States dollar. Share-based payments reserve The reserve is used to recognize the value of equity benefits provided to employees and Directors as part of their remuneration, and other parties as part of their compensation for services. |
Dividends
Dividends | 12 Months Ended |
Jun. 30, 2022 | |
Dividends [Abstract] | |
Dividends | Note 23. Dividends There were no dividends paid, recommended or declared during the current or previous financial year. |
Earnings per share
Earnings per share | 12 Months Ended |
Jun. 30, 2022 | |
Earnings per share [Abstract] | |
Earnings per share | Note 24. Earnings per share Year ended 30 June 2022 Year ended 30 June 2021 (restated*) Year ended 30 June 2020 (restated*) US$’000 US$’000 US$’000 Loss after income tax (419,770 ) (60,390 ) (2,142 ) Number Number Number Weighted average number of shares used in calculating basic earnings per share 40,941,074 20,629,327 16,117,168 Weighted average number of shares used in calculating diluted earnings per share 40,941,074 20,629,327 16,117,168 Cents Cents Cents Basic earnings per share (1,025.30 ) (292.74 ) (13.29 ) Diluted earnings per share (1,025.30 ) (292.74 ) (13.29 ) As the Group has recorded a loss after tax for all years presented, any potential ordinary shares are antidilutive. |
Financial instruments
Financial instruments | 12 Months Ended |
Jun. 30, 2022 | |
Financial instruments [Abstract] | |
Financial instruments | Note 25. Financial instruments Financial risk management objectives The Group has a simple capital structure and its principal financial assets are cash and cash equivalents and receivables. The Group is subject to market risk by way of being exposed to daily volatility in the Bitcoin price and variations in foreign exchange rates. The Group has limited exposure to credit risk. The Group holds cash and cash equivalents with regulated authorized deposit taking institutions which have strong credit ratings. The Group may also be exposed to liquidity and capital risk, due to the nature of operations and the requirements to pay mining hardware commitments. Risk management is carried out by senior executives who identify, evaluate and hedge financial risks. Market risk Foreign currency risk The Group undertakes certain transactions denominated in foreign currency and is exposed to foreign currency risk through foreign exchange rate fluctuations. Foreign exchange risk arises from future commercial transactions and recognized financial assets and financial liabilities denominated in a currency that is not the entity’s functional currency. The risk is measured using sensitivity analysis and cash flow forecasting. The Group’s exposure to foreign currency risk arises when a Group entity holds a financial asset or liability in a currency other than the functional currency of that entity. At the end of the reporting period, the Group’s exposure to foreign currency risk was as follows (denominated in US dollars): Assets Liabilities 30 June 2022 30 June 2021 (restated*) 30 June 2022 30 June 2021 (restated*) Consolidated US$’000 US$’000 US$’000 US$’000 US dollars 96,648 34,407 110,265 20,153 Canadian dollars 154,328 48,043 30,135 - 250,976 82,450 140,400 20,153 Sensitivity analysis The following table illustrates sensitivities to the Group’s exposure to changes in exchange rates. The sensitivity analysis includes external loans as well as loans to foreign operations within the Group where the denomination of the loan is in a currency other than the currency of the lender or the borrower. Strengthened Weakened Consolidated – 30 June 2022 Change % Effect on profit before tax US$’000 Effect on US$’000 Change % Effect on profit before tax US$’000 Effect on equity US$’000 US dollar 10 % (1,238 ) (1,238 ) 10 % 1,513 1,513 Canadian dollar 10 % 23,386 23,386 10 % (23,386 ) (23,386 ) Australian dollar 10 % (22,152 ) (22,152 ) 10 % 21,896 21,896 (4 ) (4 ) 23 23 Strengthened Weakened Consolidated – 30 June 2021 (restated*) Change % Effect on profit before tax US$’000 Effect on equity US$’000 Change % Effect on profit before tax US$’000 Effect on equity US$’000 US dollar 10 % 1,296 1,296 10 % (1,584 ) (1,584 ) Canadian dollar 10 % 6,733 6,733 10 % (6,733 ) (6,733 ) Australian dollar 10 % (8,104 ) (8,104 ) 10 % 8,212 8,212 (75 ) (75 ) (105 ) (105 ) Price risk The Group is exposed to daily price risk on Bitcoin rewards it generates through contributing computing power to mining pools. Bitcoin rewards are liquidated on a daily basis and no Bitcoin is held as at the reporting period end (30 June 2021: nil Interest rate risk The Group has limited exposure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as a result of changes in the market interest rates on variable interest-bearing financial instruments. The Group does not, at this time, use derivatives to mitigate these exposures. The Group’s cash and cash equivalents consist of balances available on demand which are held with regulated financial institutions and do not expose the Group to interest rate risk. The Group is not subject to any interest rate risk on its borrowings as all Group borrowings have fixed interest rates. Credit risk The Group is exposed to counterparty credit risk from exchanges and mining pools. It mitigates this risk by maintaining relationships with various alternative mining pools and transferring fiat currency to its Australian bank account on a regular basis. Liquidity risk The Group is exposed to liquidity risk and is required to maintain sufficient liquid assets (mainly cash and cash equivalents) and available borrowing facilities to be able to pay contractual obligations as and when they become due and payable. The Group manages liquidity risk by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. The Group regularly updates cash projections for changes in business and fluctuations in the Bitcoin price. Refer to the Going Concern section within note 2 for further information in relation to how the Group intends to meet its short-term contractual obligations. Remaining contractual maturities The following table details the Group’s remaining contractual maturity for its financial instrument liabilities. The table has been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the financial liabilities are required to be paid. The tables include both interest and principal cash flows disclosed as remaining contractual maturities and therefore these totals may differ from their carrying amount in the consolidated statement of financial position. Weighted average contractual interest rate 1 year or less Between 1 and 2 years Between 2 and 5 years Over 5 years Remaining contractual maturities Consolidated – 30 June 2022 % US$’000 US$’000 US$’000 US$’000 US$’000 Non-derivatives Non-interest bearing Trade and other payables - 18,813 - - - 18,813 Interest-bearing – fixed rate Mining hardware finance 11.35 % 61,988 47,421 - - 109,409 Lease liability - 207 222 443 2,435 3,307 Total non-derivatives 81,008 47,643 443 2,435 131,529 Weighted average contractual interest rate 1 year or less Between 1 and 2 years Between 2 and 5 years Over 5 years Remaining contractual maturities Consolidated – 30 June 2021 (restated*) % US$’000 US$’000 US$’000 US$’000 US$’000 Non-derivatives Non-interest bearing Trade and other payables - 545 - - - 545 Interest-bearing – fixed rate Mining hardware finance 12.00 % 18,159 36,364 8,583 - 63,106 Convertible notes issued 5 January 2021 12.00 % 21,467 - - - 21,467 Convertible notes issued 1 April 2021 12.00 % 98,311 - - - 98,311 Lease liability - 98 106 319 2,638 3,161 Total non-derivatives 138,580 36,470 8,902 2,638 186,590 |
Fair value measurement
Fair value measurement | 12 Months Ended |
Jun. 30, 2022 | |
Fair value measurement [Abstract] | |
Fair value measurement | Note 26. Fair value measurement Fair value hierarchy The Group does not have any financial assets measured at fair value. The following table does not include fair value information for assets and liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value. The Group’s financial liabilities have been measured and disclosed at fair value, using a three-level hierarchy, based on the lowest level of input that is significant to the entire fair value measurement, being: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly Level 3: Unobservable inputs for the asset or liability As at 30 June 2022, the carrying value of all of the Group’s financial liabilities represented a reasonable approximation of the fair value of such liabilities. Consolidated – 30 June 2021 (restated*) Level 1 US$’000 Level 2 US$’000 Level 3 US$’000 Total US$’000 Financial Liabilities Embedded derivative – SAFE (issued 28 October 2020) - - 7,424 7,424 Embedded derivative – convertible note (issued 5 January 2021) - - 51,307 51,307 Embedded derivative – convertible note (issued on 1 April 2021) - - 37,990 37,990 Total liabilities - - 96,721 96,721 During the financial year ended 30 June 2021, the Group issued SAFE notes and two tranches of convertible notes. Embedded derivatives were identified and recognized at fair value upon initial recognition of each of these instruments. These embedded derivatives were held at fair value through profit or loss. On 16 November 2021, immediately prior to IPO on 17 November 2021, the Group converted all outstanding convertible notes and SAFE instruments to equity in line with the associated terms attached to each instrument. There were no transfers between levels during the financial year. The carrying amounts of trade and other receivables and trade and other payables are assumed to approximate their fair values due to their short-term nature. Valuation techniques for fair value measurements categorized within level 3 An instrument is included in level 3 if the financial instrument is not traded in an active market and if the fair value is determined by using valuation techniques that are not based on the use of observable market data for all significant inputs. The estimated fair value approximates to the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Specific valuation techniques used to value level 3 financial instruments include: ● Monte-Carlo pricing simulations; and ● Black-Scholes-Merton valuation model. Level 3 liabilities Movements in level 3 liabilities during the current and previous financial year are set out below: Embedded derivatives Total Consolidated US$’000 US$’000 Balance as at 1 July 2020 - - Fair value of embedded derivatives at issuance date 52,029 52,029 Loss recognized in profit and loss 44,692 44,692 Balance as at 30 June 2021 96,721 96,721 Fair value of embedded derivatives at issuance date 65,311 65,311 Loss recognized in profit and loss 390,743 390,743 Embedded derivatives converted to Equity on 16 November 2022 (552,775 ) (552,775 ) Balance as at 30 June 2022 - - |
Commitments
Commitments | 12 Months Ended |
Jun. 30, 2022 | |
Commitments [Abstract] | |
Commitments | Note 27. Commitments As at 30 June 2022, the Group had commitments of $346,623,000 (includes estimated shipping and non-refundable sales tax) (30 June 2021: $156,630,000) which are payable in installments from July 2022 to October 2023. These commitments include committed capital expenditure on infrastructure and long-term purchase contracts in relation to mining hardware. The committed amounts are payable as set out below: Consolidated 30 June 2022 30 June 2021 (restated*) US$’000 US$’000 Amounts payable within 12 months of balance date 322,706 148,274 Amounts payable after 12 months of balance date 23,917 8,356 346,623 156,630 Certain subsidiaries of the Group have entered into three binding hardware purchase agreements with Bitmain. The first two agreements relate to hardware that is expected to enable the Group to achieve 4.3 EH/s of operating capacity. The third agreement is a $400,000,000 hardware purchase agreement for approximately 10 EH/s of miners. On 1 August 2022, the Group announced that it had reached agreement with Bitmain to ship an additional 1.7 EH/s of miners under the third agreement, which is expected to increase the Group’s operating capacity to 6.0 EH/s. As at 30 June 2022 commitments of $316,160,000 (including estimated shipping and non-refundable sales tax) relates to the third agreement with Bitmain, payable in installments from July 2022 until October 2023. The relevant subsidiary of the Group has not made all scheduled payments under this contract and does not currently expect to make upcoming payments in respect of any such additional future deliveries under this contract. This contract is subject to ongoing discussions with Bitmain. Under the third Bitmain contract, if the relevant subsidiary fails to pay the remaining commitments as and when they become due (and fail to make a written request to Bitmain no less than five |
Interests in subsidiaries
Interests in subsidiaries | 12 Months Ended |
Jun. 30, 2022 | |
Interests in subsidiaries [Abstract] | |
Interests in subsidiaries | Note 28. Interests in subsidiaries The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the accounting policy described in note 2: Ownership interest Name Principal place of business / Country of incorporation 30 June 2022 % 30 June 2021 % Iris Energy Custodian Pty Ltd Australia 100 % 100 % SA 1 Holdings Ltd Australia 100 % 100 % SA 2 Holdings Ltd Australia 100 % 100 % Podtech Data Centers Inc. Canada 100 % 100 % IE CA 1 Holdings Ltd. Canada 100 % 100 % IE CA 2 Holdings Ltd. Canada 100 % 100 % IE CA 3 Holdings Ltd. Canada 100 % 100 % IE CA 4 Holdings Ltd. Canada 100 % 100 % IE CA 5 Holdings Ltd. Canada 100 % 100 % IE CA Development Holdings Ltd. Canada 100 % 100 % IE CA Development Holdings 2 Ltd. Canada 100 % 100 % IE CA Development Holdings 3 Ltd. Canada 100 % 100 % IE CA Development Holdings 4 Ltd. Canada 100 % 100 % IE CA Development Holdings 5 Ltd. Canada 100 % 100 % IE US 1, Inc. United States of America 100 % 100 % IE CA Development Holdings 7 Ltd. Canada 100 % - Iris Energy Holdings Pty Ltd. Australia 100 % - TAS 1 Holdings Ltd Australia 100 % - IE US Development Holdings 1 Inc. United States of America 100 % - IE US Holdings Inc. United States of America 100 % - IE US Development Holdings 3 Inc. United States of America 100 % - IE US Development Holdings 4 Inc. United States of America 100 % - IE US Operations Inc. United States of America 100 % - IE US Hardware 1 Inc. United States of America 100 % - IE US Hardware 2 Inc. United States of America 100 % - IE US Hardware 3 Inc. United States of America 100 % - IE US Hardware 4 Inc. United States of America 100 % - |
Reconciliation of loss after in
Reconciliation of loss after income tax to net cash from/(used in) operating activities | 12 Months Ended |
Jun. 30, 2022 | |
Reconciliation of loss after income tax to net cash from/(used in) operating activities [Abstract] | |
Reconciliation of loss after income tax to net cash from/(used in) operating activities | Note 29. Reconciliation of loss after income tax to net cash from/(used in) operating activities Consolidated Year ended Year ended 30 June 2021 (restated*) Year ended 30 June 2020 (restated*) US$'000 US$'000 US$'000 Loss after income tax expense for the year (419,770 ) (60,390 ) (2,142 ) Adjustments for: Depreciation 7,741 1,252 757 Capital raising costs 4,212 - - Impairment of assets 167 432 - Net loss/(gain) on disposal of non-current assets (12 ) 202 - Unrealized foreign exchange gains (8,889 ) (2,729 ) - Loss on embedded derivatives held at fair value through profit or loss 390,743 44,692 - Interest expense on hybrid financial instruments 26,748 14,182 - Amortization of capitalized borrowing costs 2,508 1,968 - Share-based payment expense 13,896 805 179 Change in operating assets and liabilities: Increase in other receivables (72 ) (416 ) (329 ) Increase in deferred tax assets (9,645 ) (911 ) - Increase in trade and other payables 6,476 367 505 Increase in provision for income tax 671 533 - Increase in deferred tax liabilities 6,892 1,618 - Increase in employee benefits 2,026 66 43 Increase in other provisions 2,469 - - Decrease in operating deposits - 90 - Increase in prepayments and deposits (4,604 ) - - Net cash from/(used in) operating activities 21,557 1,761 (987 ) |
Non-cash investing and financin
Non-cash investing and financing activities | 12 Months Ended |
Jun. 30, 2022 | |
Non-cash investing and financing activities [Abstract] | |
Non-cash investing and financing activities | Note 30. Non-cash investing and financing activities Consolidated Year ended 30 June 2022 Year ended 30 June 2021 (restated*) Year ended 30 June 2020 (restated*) US$'000 US$'000 US$'000 Convertible notes issued in lieu of interest/referral fees - (463 ) - Mining hardware finance additional fee (1,424 ) (2,426 ) - Mining hardware prepayments made directly by third party financier (37,980 ) (1,458 ) - Additions to right-of-use assets and lease liabilities 298 1,051 271 Shares issued in relation to business combinations - - 1,930 Vendor loan - - 1,980 (39,106 ) (3,296 ) 4,181 |
Share-based payments
Share-based payments | 12 Months Ended |
Jun. 30, 2022 | |
Share-based payments [Abstract] | |
Share-based payments | Note 31. Share-based payments 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 below: Employee Share Plan The Group's Employee Share Plan is a loan-funded share scheme. These loan-funded shares generally vest subject to satisfying employment service periods (and in some cases, non-market-based performance milestones). The employment service periods are generally met in three equal tranches on the third, fourth and fifth anniversary of the grant date. Under this scheme, the Company issues a limited recourse loan (that has a maximum term of up to 9 years and 11 months) to employees for the sole purpose of acquiring shares in the Company. Upon disposal of any loan-funded shares by employees, the aggregate purchase price for the shares shall be applied by the Company to pay down the outstanding loan payable. The recourse on the loan is limited to the lower of the initial amount of the loan granted to the employee and the proceeds from the sale of the underlying shares. Employees are entitled to exercise the voting and dividend rights attached to the shares from the date of allocation. If the employee leaves the Company within the vesting period, the shares may be bought back by the Company at the original issue price and the loan is repaid. Loan-funded shares have been treated as options as required under IFRS 2 Share-based Payments. Vesting of instruments granted under the Employee Share Plan is dependent on specific service thresholds being met by the employee. 2021 Executive Director Liquidity and Price Target Options On 20 January 2021, the Group's board approved the grant of 1,000,000 options each to entities controlled by Daniel Roberts and William Roberts (each an Executive Director) to acquire ordinary shares at an exercise price of $3.8647 (A$5.0005) with an expiration date of 20 December 2025 ● If the IPO price or volume weighted average market price (‘VWAP’) of an ordinary share over any consecutive 20 trading day period is equal to or exceeds $5.41 (A$7.00): 300,000 options vest ● If the IPO price or VWAP of an ordinary share over any consecutive 20 trading day period is equal to or exceeds $6.96 (A$9.00): 300,000 options vest ● If the IPO price or VWAP of an ordinary share over any consecutive 20 trading day period is equal to or exceeds $8.50 (A$11.00): 400,000 options vest The option holder is entitled to receive, in its capacity as a holder of the options, an income distribution per vested option equal to any dividend, distribution, capital return or buyback proceeds (collectively, ‘Distribution’) paid by the Company per ordinary share as if any vested options were exercised and ordinary shares issued to the option holder at the relevant time of such Distribution. The options are subject to customary adjustments to reflect any reorganization of the Company’s capital. As at 30 June 2022, none of the 2,000,000 outstanding vested 'Executive Director Liquidity and Price Target Options' have been exercised. Employee Option Plan The Board approved an Employee Option Plan on 28 July 2021. The terms of the Employee Option Plan are substantially similar to the Employee Share Plan, with the main difference being that the incentives are issued in the form of options and loans are not provided to participants. If the employee leaves the Company within the vesting period of the options granted, the Board retains the absolute discretion to cancel any unvested options held by the employee. Vesting of options granted under the Employee Option Plan is dependent on specific service thresholds being met by the employee. Non-Executive Director Option Plan The Board approved a Non-Executive Director Option Plan (‘NED Option Plan’) on 28 July 2021. The terms of the NED Option Plan are substantially similar to the Employee Option Plan. Vesting of instruments granted under the NED Option Plan is dependent on specific service thresholds being met by the Non-Executive Director. Where an option holder ceases to be a Director of the Company within the vesting period, the options granted to that Director will vest on a pro-rata basis of the associated service period. The Board retains the absolute discretion to cancel any remaining unvested options held by the option holder. 2 021 Executive Director Long-term Target Options On 18 August 2021, the Group's shareholders approved the grant of 2,400,000 long-term options each to entities controlled by Daniel Roberts and William Roberts to acquire ordinary shares at an exercise price of $75 per option (‘Long-term Target Options’). These options were granted on 14 September 2021, and have a contractual exercise period of 12 years. The Long-term Target Options will vest in four tranches following listing of the Company, if the relevant ordinary share price is equal to or exceeds the corresponding vesting threshold and the relevant Executive Director has not voluntarily resigned as a Director of the Company. The vesting thresholds are detailed below: ● If the VWAP of an ordinary share over the immediately preceding 20 trading days is equal to or exceeds $370: 600,000 Long-term Target Options will vest ● If the VWAP of an ordinary share over the immediately preceding 20 trading days is equal to or exceeds $650: 600,000 Long-term Target Options will vest ● If the VWAP of an ordinary share over the immediately preceding 20 trading days is equal to or exceeds $925: 600,000 Long-term Target Options will vest ● If the VWAP of an ordinary share over the immediately preceding 20 trading days is equal to or exceeds $1,850: 600,000 Long-term Target Options will vest The VWAP vesting thresholds may also be triggered by a sale or takeover of the Company based upon the price per ordinary share received in such transaction. The option holder is entitled to receive in its capacity as a holder of the options, a distribution paid by the Company per ordinary share as if the vested options were exercised and ordinary shares issued to the option holder at the relevant time of such distribution. The options are subject to customary adjustments to reflect any reorganization of the Company's capital, as well as adjustments to vesting thresholds including any future issuance of ordinary shares by the Company. Reconciliation of outstanding share options Set out below are summaries of options granted under all plans: Number of options Weighted average exercise price Number of options Weighted average exercise price 30 June 2022 30 June 2022 30 June 2021 30 June 2021 (restated*) Outstanding as at 1 July 4,143,415 $ 3.03 1,492,317 $ 1.53 Granted during the year 5,126,484 $ 71.19 2,693,944 $ 3.91 Forfeited during the year (259,352 ) $ 8.01 (42,846 ) $ 4.57 Outstanding at the end of the financial year 9,010,547 $ 41.67 4,143,415 $ 3.03 Exercisable at the end of the financial year 3,351,327 $ 3.04 302,000 $ 2.01 As at 30 June 2022, the weighted average remaining contractual life of options outstanding is 8.69 years (30 June 2021: 6.8 years, 30 June 2020: 9.6 years). Valuation methodology The fair value of instruments issued under the Employee Share Plan, Employee Option Plan and NED Option Plan have been measured using a Black-Scholes-Merton valuation model. The fair value of the Executive Director Liquidity and Price Target Options and 2021 Executive Director Long-term Target Options have been measured using a Monte-Carlo simulation. Service and non-market performance conditions attached to the arrangements were not taken into account when measuring fair value. The following table list the inputs used in measuring the fair value of arrangements granted during the years ended 30 June 2022, 30 June 2021 and 30 June 2020: Grant date Dividend yield Expected volatility Risk-free interest rate Expected life (weighted average) Grant date share price Exercise price (weighted average) Fair value (weighted average) Number of options granted % % % years US$ US$ US$ Employee Share Plan 04 April 2020 - 46 % 0.15 % 2.28 1.53 1.53 0.39 1,492,317 31 July 2020 - 60 % 0.15 % 2.00 2.37 2.12 0.83 453,516 10 May 2021 - 90 % 0.15 % 2.71 7.68 7.64 4.46 240,428 Employee Option Plan 28 July 2021 - 90 % 0.15 % 7.00 34.73 8.76 31.05 89,541 20 October 2021 - 90 % 0.15 % 7.00 34.80 36.45 26.50 53,223 17 June 2022 - 122 % 0.85 % 7.00 3.74 36.45 2.71 7,750 Executive Director Options 20 January 2021 - 60 % 0.15 % 4.90 2.71 3.86 0.81 2,000,000 Long-term Target Options 14 September 2021 - 90 % 1.28 % 9.00 34.17 75.00 23.87 4,800,000 NED Option Plan 28 July 2021 - 90 % 0.15 % 6.58 34.73 8.76 30.80 161,707 21 October 2021 - 90 % 0.15 % 7.00 34.80 36.45 26.50 14,266 The share-based payment expense for the year was $13,896,000 (2021: $805,000, 2020: $179,000). |
Related party transactions
Related party transactions | 12 Months Ended |
Jun. 30, 2022 | |
Related party transactions [Abstract] | |
Related party transactions | Note 32. Related party transactions Parent entity Iris Energy Limited is the ultimate parent entity. Subsidiaries Interests in subsidiaries are set out in note 28. Key management personnel (‘KMP’) Disclosures relating to key management personnel are set out in note 33. Transactions with related parties Other than those disclosed in note 33, there were no transactions with related parties during the current and previous financial year. 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 to/from related parties There were no loans to or from related parties at the current and previous reporting date. |
Key management personnel disclo
Key management personnel disclosures | 12 Months Ended |
Jun. 30, 2022 | |
Key Management Personnel Disclosures [Abstract] | |
Key management personnel disclosures | Note 33. Key management personnel disclosures Details of Directors and key management personnel The following persons were Directors of Iris Energy Limited at any time during the year, up to the date of this report: Individual Position Date of Commencement Date ceased to be KMP David Bartholomew Non-Executive Director 24 September 2021 - Christopher Guzowski Non-Executive Director 19 December 2019 - Michael Alfred Non-Executive Director 21 October 2021 - Daniel Roberts Executive Director and Co-CEO 6 November 2018 - William Roberts Executive Director and Co-CEO 6 November 2018 - Paul Gordon Non-Executive Director 19 December 2019 24 October 2021 The following persons were considered to be KMP of Iris Energy Limited at any time during the year: Individual Position Date of Commencement Date ceased to be KMP Lindsay Ward President 18 October 2021 - David Shaw Chief Operating Officer 22 October 2021 - Belinda Nucifora Chief Financial Officer 16 May 2022 - Jason Conroy Chief Executive Officer 10 May 2021 23 September 2021 Significant Transactions with key management personnel On or around 18 August 2021, the shareholders of the Company approved the issue of one B Class share each (for consideration of A$1.00 per B Class share) to entities controlled by Daniel Roberts and William Roberts, respectively. The B Class shares were formally issued on 7 October 2021. Each B Class share confers on the holder fifteen votes for each ordinary share in the Company held by the holder. In addition, a B Class share confers a right for the holder to nominate a Director to put forward for election to the Board. Because of the increased voting power of the B Class shares, the holders of the B Class shares collectively could continue to control a significant percentage of the combined voting power of the Company's shares and therefore be able to control all matters submitted to the Company’s shareholders for approval until the redemption of the B Class shares by the Company on the earlier of (i) when the holder ceases to be a Director due to voluntary retirement; (ii) a transfer of B Class shares in breach of the Constitution; (iii) liquidation or winding up of the Company; or (iv) at any time which is 12 years after the Company’s ordinary shares are first listed on a recognized stock exchange. Aside from these governance rights, the B Class shares do not provide the holder with any economic rights (e.g., the B Class shares do not confer on its holder any right to receive dividends). The B Class shares are not transferable by the holder (except in limited circumstances to affiliates of the holder). Deed of access, insurance and indemnity The Group has entered into deeds of access, insurance and indemnity with each of its Directors and certain of its officers. These deeds provide the Directors and officers with contractual rights to indemnification and expense advancement and are governed by the laws of Victoria, Australia. Compensation The aggregate compensation made to Directors and other members of KMP of the Group is set out below: Consolidated Year ended 30 June 2022 Year ended 30 June 2021 (restated*) US$ US$ Short-term employee benefits 1,610,088 368,493 Post-employment benefits 81,550 32,328 Share-based payments 13,314,679 174,603 15,006,317 575,424 The following table summarizes the movement in options outstanding issued to Directors and other members of KMP during the year ended 30 June 2022: Number of options Weighted average exercise price Number of options Weighted average exercise price 30 June 2022 30 June 2022 30 June 2021 30 June 2021 (restated*) Outstanding as at 1 July 2,136,171 $ 4.10 - - Granted during the year 5,014,834 $ 72.46 2,136,171 $ 4.10 Forfeited during the year (177,489 ) $ 7.90 - - Outstanding at the end of the financial year 6,973,516 $ 53.16 2,136,171 $ 4.10 Exercisable at the end of the financial year 2,035,278 $ 3.95 - - Other key management personnel transactions During the year ended 30 June 2021, each of the Executive Directors paid the Company $3,868 (A$5,005) as consideration for the grant of the Executive Director Liquidity and Price Target Options (see note 31). This transaction was priced on an arms-length basis and all outstanding balances were settled prior to 30 June 2021. |
Events after the reporting peri
Events after the reporting period | 12 Months Ended |
Jun. 30, 2022 | |
Events after the reporting period [Abstract] | |
Events after the reporting period | Note 34. Events after the reporting period Advanced delivery of Mining Hardware As at 30 June 2022, the Group held $158,184,000 in prepayments made to Bitmain for future mining hardware deliveries. Since the end of the financial year, the Group made all final scheduled payments to utilize $30,127,000 of this balance, which is expected to increase the Group’s operating capacity to 4.3 EH/s. On 1 August 2022, the Group announced it had reached an agreement with Bitmain to ship an additional 1.7 EH/s of mining hardware. This shipment is expected to increase the Group’s operating capacity to 6.0 EH/s. The agreement utilizes $46,006,000 (1) Utilization of the remaining $82,051,000 (2) No other matter or circumstance has arisen since 30 June 2022 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. (1) The cash payment made by the Canadian subsidiary of the Group was $46,670,000. The retranslated balance of the prepayment as at 30 June 2022 is $46,006,000. (2) The cash payment made by the Canadian subsidiary of the Group was $83,340,000. The retranslated balance of the prepayment as at 30 June 2022 is $82,051,000. |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Jun. 30, 2022 | |
Significant accounting policies [Abstract] | |
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 cashflows 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 year ended 30 June 2022, the Group incurred a loss after tax of $419,770,000 (2021: $60,390,000) and net operating cash inflows of $21,557,000 (2021: $1,761,000). As at 30 June 2022, the Group had net current assets of $75,148,000 (2021: net current liabilities of $130,034,000) and net assets of $437,362,000 (2021: net liabilities of $49,454,000). 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 Bitcoin’s 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 continued decline in the market price of Bitcoin, an increase in the difficulty of Bitcoin mining, changes in the regulatory environment 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 possible changes in 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 execute a business plan aimed at continued security, operational efficiency, revenue growth, improving overall mining profit, managing operating expenses and working capital requirements, maintaining capital expenditure optionality, and securing additional financing, as needed, through one or more debt and/or equity capital raisings. The Group can wind down its operations (including not acquiring any additional mining hardware and/or incurring the associated infrastructure growth capital expenditure) in the event of unfavourable pricing in Bitcoin. 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 considerations include: ● A base case scenario assuming current Bitcoin prices and global hashrate for the next 12 months, which has been considered at various bitcoin and hashrate scenarios; ● The completion of key construction projects including the commissioning of the 50MW site at Prince George, British Columbia, an additional 30MW at Mackenzie, British Columbia (currently 50MW capacity) and energization at Childress, Texas; ● As at 30 June 2022, the Group held $158,184,000 in prepayments made to Bitmain Technologies Limited (‘Bitmain’) for future mining hardware deliveries. $30,127,000 of this prepayment balance relates to a portion of deliveries assumed to increase the Group’s operating capacity to 4.3 EH/s by the end of the quarter ending 31 December 2022; ● On 1 August 2022, the Group announced that it had reached agreement with Bitmain to ship an additional 1.7 EH/s of miners, which is assumed to increase the Group’s operating capacity to 6.0 EH/s before the end of the fiscal year 2023. The agreement utilizes $46,006,000 (1) ● Utilization of the remaining $82,051,000 (2) ● The Group does not currently have any corporate level debt outstanding. For the purposes of this going concern assessment, all existing limited-recourse financing facilities are assumed to be repaid in line with the contractual terms. These key assumptions have been considered using a range of historic Bitcoin price and global hashrate scenarios. The Group aims to maintain a degree of flexibility in both operating and capital expenditure cashflow management where it practicably makes sense, including ongoing internal cashflow monitoring and projection analysis performed to identify potential liquidity risks arising and to be able to respond accordingly. 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. (1) The cash payment made by the Canadian subsidiary of the Group was $46,670,000. The retranslated balance of the prepayment as at 30 June 2022 is $46,006,000. (2) The cash payment made by the Canadian subsidiary of the Group was $83,340,000. The retranslated balance of the prepayment as at 30 June 2022 is $82,051,000. |
Basis of preparation | Basis of preparation These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (‘IFRS’) as issued by the International Accounting Standards Board (‘IASB’). Historical cost convention The consolidated financial statements have been prepared under the historical cost convention, except for the revaluation of financial assets and liabilities at fair value through profit or loss. Critical accounting estimates The preparation of the consolidated financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements, are disclosed in note 3. |
Principles of consolidation | Principles of consolidation The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Iris Energy Limited as at 30 June 2022 and 30 June 2021 and the results of all subsidiaries for the years ended 30 June 2022, 30 June 2021, and 30 June 2020. Subsidiaries are all those entities over which the Group has control (as listed in note 28). The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases. Intercompany transactions, balances and unrealized gains on transactions between entities in the Group are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries align to the policies adopted by the Group. The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest, without the loss of control, is accounted for as an equity transaction, where the difference between the consideration transferred and the book value of the share of the non-controlling interest acquired is recognized directly in equity attributable to the parent. Where the Group loses control over a subsidiary, it derecognizes the assets including goodwill, liabilities and non-controlling interest in the subsidiary, together with any cumulative translation differences recognized in equity. The Group recognizes the fair value of the consideration received and the fair value of any investment retained together with any gain or loss in profit or loss. |
Operating segments | Operating segments Operating segments are presented using the ‘management approach’, where the information presented is on the same basis as the internal reports provided to the Chief Operating Decision Makers (‘CODM’). The CODM is responsible for the allocation of resources to operating segments and assessing their performance. |
Functional and presentation currency | Functional and presentation currency The Directors have elected to change the Group’s presentation currency from Australian dollars (‘A$’) to United States dollars (‘$’, ‘US$’ or ‘US dollars’) effective from 1 July 2021. The change in presentation currency is a voluntary change which is accounted for retrospectively. All other accounting policies are consistent with those adopted in the annual financial report for the year ended 30 June 2021. The consolidated financial statements have been restated to US dollars using the procedures outlined below: ● Statement of profit or loss and other comprehensive income and statement of cash flows for each Group entity have been consolidated into US dollars using average foreign currency rates prevailing for the relevant period. ● Assets and liabilities in the consolidated statement of financial position have been translated into US dollars at the closing foreign currency rates on the relevant balance sheet dates. ● The equity section of the consolidated statement of financial position, including foreign currency translation reserve, accumulated losses, issued capital and the other reserves, have been translated into US dollars using historical rates. ● Earnings per share and dividend disclosures have also been restated to US dollars to reflect the change in presentation currency. The functional currency of the Parent Entity is Australian dollars, whilst the presentation currency of the Group is now in US dollars. Some subsidiaries have a functional currency other than Australian dollars, which is translated to the presentation currency. Transactions in currencies other than an entity’s functional currency are initially recorded in the functional currency by applying the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in currencies other than an entity’s functional currency are retranslated at the foreign exchange rate ruling at the reporting date. Foreign exchange differences arising on translation are recognized in the statement of profit and loss. Non-monetary assets and liabilities that are measured in terms of historical cost in currencies other than an entity’s functional currency are translated using the exchange rate at the date of the initial transaction. Foreign operations The assets and liabilities of foreign operations are translated into US dollars using the relevant exchange rates at the reporting date. The revenues and expenses of foreign operations are translated into US dollars using the average exchange rates, which approximate the rates at the dates of the transactions, for the period. All resulting foreign exchange differences are recognized in other comprehensive income/(loss) through the foreign currency translation reserve in equity. The foreign currency translation reserve is recognized in profit or loss when the foreign operation or net investment is disposed of. |
Revenue and other income recognition | Revenue and other income recognition The Group recognizes revenue and other income as follows: Revenue from contracts with customers Revenue is recognized at an amount that reflects the consideration to which the Group is expected to be entitled in exchange for transferring goods or services to a customer. For each contract with a customer, the Group: identifies the contract with a customer; identifies the performance obligations in the contract; determines the transaction price which takes into account estimates of variable consideration and the time value of money; allocates the transaction price to the separate performance obligations on the basis of the relative stand-alone selling price of each distinct good or service to be delivered; and recognizes revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of the goods or services promised. 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 In certain mining pools that, the Group participated in during the year ended 30 June 2020, the amount of reward for computing power depends on the pool’s success in mining blocks. In this type of pool, the total Bitcoin mined by the pool is distributed daily to the pool participant’s, net of the fees of the mining pool operator. In other pools that, the Group participated in during the years ended 30 June 2020, 30 June 2021 and 30 June 2022, the Group is not directly exposed to the pool’s success in mining blocks. The Group is rewarded in Bitcoin for the hashrate it contributes to these mining pools. The reward for the hashrate contributed by the Group is based on the current network difficulty and global daily revenues from transaction fees, less mining pool fees. Bitcoin mining revenue comprises of the block reward and transaction fees bundled together in a gross daily deposit of Bitcoin into the Group’s exchange wallet. Bitcoin received from the mining pool operator are remitted to the pool participants’ wallets net of the fees of the mining pool operator. The mining pool operator fees are reflected in the quantity of Bitcoin received by the Group and recorded as a reduction in Bitcoin mining revenue. The Group measures the non-cash consideration received at the fair market value of the Bitcoin received. Management estimates fair value, on a daily basis, as the quantity of Bitcoin received multiplied by the price quoted on www.coinmarketcap.com (‘Coinmarketcap’) on the day it was received. Management considers the prices quoted on Coinmarketcap to be a level 1 input under IFRS 13 Fair Value Measurement. The Group did not hold any Bitcoin on hand as at 30 June 2022 (30 June 2021: Nil Other income Other income is recognized when it is received or when the right to receive payment is established. |
Income tax | Income tax The income tax expense for the period is the tax payable on that period’s taxable income based on the applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary differences, unused tax losses and the adjustment recognized for prior periods, where applicable. Deferred tax assets and liabilities are recognized for temporary differences at the tax rates expected to be applied when the assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for: ● when the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor taxable profits; or ● when the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets are recognized for deductible temporary difference only if the Group considers it probable that future taxable amounts will be available to utilize those temporary differences and losses. The carrying amount of recognized and unrecognized deferred tax assets are reviewed at each reporting date. Deferred tax assets recognized are reduced to the extent that it is no longer probable that future taxable profits will be available for the carrying amount to be recovered. Previously unrecognized deferred tax assets are recognized to the extent that it is probable that there are future taxable profits available to recover the asset. Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on either the same taxable entity or different taxable entities which intend to settle simultaneously. Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, and the amount and timing of future taxable income. These uncertainties may require management to adjust expectations based on changes in circumstances, which may impact the amount of deferred tax assets and deferred tax liabilities recognized in the statement of financial position and the amount of other tax losses and temporary differences not recognized. In such circumstances, some or all of the carrying amounts of recognized deferred tax assets and liabilities may require adjustment, resulting in a corresponding credit or charge to the consolidated statement of profit or loss and other comprehensive income/(loss). |
Current and non-current classification | Current and non-current classification Assets and liabilities are presented in the consolidated statement of financial position based on current and non-current classification. An asset is classified as current when it is either expected to be realized or intended to be sold or consumed in the Group’s normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realized within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current. A liability is classified as current when it is either expected to be settled in the Group’s normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-current. Deferred tax assets and liabilities are always classified as non-current. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. |
Other receivables | Other receivables Other receivables are recognized at amortized cost, less any allowance for expected credit losses. |
Investments and other financial assets | Investments and other financial assets Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the initial measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently measured at either amortized cost or fair value depending on their classification. Classification is determined based on both the business model within which such assets are held and the contractual cash flow characteristics of the financial asset unless an accounting mismatch is being avoided. Financial assets are derecognized when the rights to receive cash flows have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership. When there is no reasonable expectation of recovering part or all of a financial asset, its carrying value is written off. Financial assets at amortized cost A financial asset is measured at amortized cost only if both of the following conditions are met: (i) it is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and (ii) the contractual terms of the financial asset represent contractual cash flows that are solely payments of principal and interest. Impairment of financial assets The Group recognizes a loss allowance for expected credit losses on financial assets which are either measured at amortized cost or fair value through other comprehensive income. The measurement of the loss allowance depends upon the Group’s assessment at the end of each reporting period as to whether the financial instrument’s credit risk has increased significantly since initial recognition, based on reasonable and supportable information that is available, without undue cost or effort to obtain. Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month expected credit loss allowance is estimated. This represents a portion of the asset’s lifetime expected credit losses that is attributable to a default event that is possible within the next 12 months. Where a financial asset has become credit impaired or where it is determined that credit risk has increased significantly, the loss allowance is based on the asset’s lifetime expected credit losses. The amount of expected credit loss recognized is measured on the basis of the probability weighted present value of anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate. |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment (excluding land) over their expected useful lives as follows: Buildings 20 years Plant and equipment 3-7 years Mining hardware 4 years The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. An item of property, plant and equipment is derecognized upon disposal or when there is no future economic benefit to the Group. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss. Assets under construction consist of capitalized site preparation fees and buildings (including data centers) currently being built. Assets under construction are not depreciated until they are available for use. Once an asset becomes available for use, it is transferred to another category within property, plant and equipment and depreciated over its useful economic life. Mining hardware includes both installed hardware units and units that have been delivered but are in storage, yet to be installed. Depreciation of mining hardware commences once units are onsite and available for use. Repair and maintenance costs incurred in connection with planned major maintenance activities are expensed to ‘other expenses’ in profit or loss. |
Leases | Leases The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Group applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. A right-of-use asset is recognized at the commencement date of a lease. The right-of-use asset is measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of the right-of-use assets includes the amount of the lease liability recognized, adjusted for, as applicable, any lease payments made at or before the commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in the cost of inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and restoring the site or asset. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets. At the commencement date of the lease, the Group recognizes lease liabilities measured at the present value of the lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amount expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating the lease, if the lease term reflects the Group exercising the option to terminate. In calculating the present value of the lease payments, the Group uses the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate. Variable lease payments that depend on an index or rate are included in the lease liability, measured using the index or rate as at the date of recognition. The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g. changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset. The Group has applied judgement to determine the lease term for contracts which include renewal and termination options. |
Goodwill | Goodwill Goodwill arises on the acquisition of a business. Goodwill is not amortized. Instead, goodwill is tested annually for impairment, or more frequently if events or changes in circumstances indicate that it might be impaired, and is carried at cost less accumulated impairment losses. Impairment losses on goodwill are taken to profit or loss and are not subsequently reversed. |
Impairment of assets | Impairment of assets At the end of the reporting period, property, plant and equipment, goodwill and right-of-use assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset (or cash generating units) is estimated and compared with its carrying amount. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount, where the recoverable amount is the higher of an asset’s fair value less costs of disposal (‘FVLCOD’) or the value in use (‘VIU’). In assessing FVLCOD or VIU, the estimated future cash flows of the asset are discounted to their present value using a discount rate that reflects the risks specific to the asset or the cash-generating unit (‘CGU’) to which the asset belongs and relevant market assessments. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (CGU). |
Trade and other payables | Trade and other payables These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year and which are unpaid. Due to their short-term nature, they are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition. |
Borrowings | Borrowings Loans and borrowings are initially recognized at the fair value of the consideration received, net of transaction costs. They are subsequently measured at amortized cost using the effective interest method. |
Hybrid financial instruments (SAFE and convertible notes) | Hybrid financial instruments (SAFE and convertible notes) Hybrid financial instruments are separated into the host liability and embedded derivative components based on the terms of the agreement. On issuance, the liability component of the hybrid financial instrument is initially recognized at the fair value of a similar liability that does not have an equity conversion option. The embedded derivative component is initially recognized at fair value and changes in the fair value are recorded in profit or loss. The host debt is carried at amortized cost using the effective interest method until it is extinguished on conversion or redemption. Any directly attributable transaction costs are allocated to the liability and embedded derivative components in proportion to their initial carrying amount. |
De-recognition of financial liabilities | De-recognition of financial liabilities The Group de-recognizes financial liabilities when, and only when, the Group’s obligations are discharged, cancelled or they expire. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized in profit or loss. |
Finance costs | Finance costs Finance costs attributable to qualifying assets are capitalized as part of the asset. All other finance costs are expensed using the effective interest rate method. |
Provisions | Provisions Provisions are recognized when the Group has a present (legal or constructive) obligation as a result of a past event, it is probable the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. If the time value of money is material, provisions are discounted using a current pre-tax rate specific to the liability. The increase in the provision resulting from the passage of time is recognized as a finance cost. |
Employee benefits | Employee benefits Short-term employee benefits Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled. Share-based payments Equity-settled share-based compensation benefits are provided to employees. Equity-settled transactions are awards of shares, or options over shares and restricted stock units, that are provided to employees in exchange for the rendering of services. The cost of equity-settled transactions is measured at fair value on grant date. Fair value is independently determined using the Black-Scholes-Merton option pricing model and Monte-Carlo simulations which take into account the exercise price, the term of the option, the impact of dilution, the share price at grant date, expected price volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term of the option, together with non-vesting conditions that do not determine whether the Group receives the services that entitle the employees to receive payment. The cost of equity-settled transactions is recognized as an expense with a corresponding increase in equity over the vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognized in profit or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognized in previous periods. Market conditions are taken into consideration in determining fair value. Therefore, any awards subject to market conditions are considered to vest irrespective of whether or not that market condition has been met, provided all other conditions are satisfied. If equity-settled awards are modified, as a minimum, an expense is recognized as if the modification has not been made. An additional expense is recognized, over the remaining vesting period, for any modification that increases the total fair value of the share-based compensation benefit as at the date of modification. |
Fair value measurement | Fair value measurement When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; and assumes that the transaction will take place either: in the principal market; or in the absence of a principal market, in the most advantageous market. Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based on its highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, are used, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. Classifications are reviewed at each reporting date and transfers between levels are determined based on a reassessment of the lowest level of input that is significant to the fair value measurement. For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise is either not available or when the valuation is deemed to be significant. External valuers are selected based on market knowledge and reputation. Where there is a significant change in fair value of an asset or liability from one period to another, an analysis is undertaken, which includes a verification of the major inputs applied in the latest valuation and a comparison, where applicable, with external sources of data. |
Issued capital | Issued capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from the proceeds. |
Earnings per share | Earnings per share Basic earnings per share Basic earnings per share is calculated by dividing the profit attributable to the owners of Iris Energy Limited, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for any bonus elements in ordinary shares issued during the financial year. The weighted average number of shares is also adjusted for any ordinary shares to be issued under mandatorily convertible instruments issued by the Group (SAFE see note 17). Diluted earnings per share Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares. |
Goods and Services Tax (GST) and other similar taxes | Goods and Services Tax (‘GST’) and other similar taxes Revenues, expenses and assets are recognized net of the amount of associated GST, unless the GST incurred is not recoverable from the tax authority. In this case it is recognized as part of the cost of the acquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of financial position. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the tax authority, are presented as operating cash flows. Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority. |
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 IASB that are mandatory for the current reporting period. These new standards did not have a material impact on the Group. 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 consolidated financial statements. |
Significant accounting polici_3
Significant accounting policies (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Significant accounting policies [Abstract] | |
Expected Useful Lives | Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment (excluding land) over their expected useful lives as follows: Buildings 20 years Plant and equipment 3-7 years Mining hardware 4 years |
Other income (Tables)
Other income (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Other income [Abstract] | |
Other Income | Consolidated Year ended 30 June 2022 Year ended 30 June 2021 (restated*) Year ended 30 June 2020 (restated*) US$’000 US$’000 US$’000 Net gain on disposal of property, plant and equipment 12 - - Government grants - 165 - Insurance recoveries - 418 16 Proceeds from the issuance of options to Executive Directors - 7 - 12 590 16 |
Depreciation (Tables)
Depreciation (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Depreciations [Abstract] | |
Depreciation | Consolidated Year ended 30 June 2022 Year ended 30 June 2021 (restated*) Year ended 30 June 2020 (restated*) US$’000 US$’000 US$’000 Depreciation of property, plant and equipment 7,682 1,209 727 Depreciation of right-of-use assets 59 43 30 7,741 1,252 757 |
Other operating expenses (Table
Other operating expenses (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Other operating expenses [Abstract] | |
Other Operating Expenses | Consolidated Year ended 30 June 2022 Year ended 30 June 2021 (restated*) Year ended 30 June 2020 (restated*) US$’000 US$’000 US$’000 Insurance 5,065 95 44 Advertising, marketing and sponsorship 305 29 7 Office rental and expenses 177 92 18 Site expenses 1,644 170 30 Charitable donations 464 - - Filing fees 462 1 - Site identification costs 258 - - Non-refundable sales tax 2,469 - - Other expenses 861 79 84 11,705 466 183 |
Finance expense (Tables)
Finance expense (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Finance expense [Abstract] | |
Finance Expense | Consolidated Year ended 30 June 2022 Year ended 30 June 2021 (restated*) Year ended 30 June 2020 (restated*) US$’000 US$’000 US$’000 Interest expense on borrowings 5,343 311 102 Interest expense on hybrid financial instruments 26,748 14,182 - Interest expense on lease liabilities 99 22 - Amortization of capitalized borrowing costs 2,508 1,968 - Loss on embedded derivatives held at fair value through profit or loss 390,743 44,692 - 425,441 61,175 102 |
Income tax expense (Tables)
Income tax expense (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Income tax expense [Abstract] | |
Reconciliation of Income Tax Expense/(Benefit) and Tax at the Statutory Rate | Consolidated Year ended Year ended 30 June 2021 (restated*) Year ended 30 June 2020 (restated*) US$’000 US$’000 US$’000 Numerical reconciliation of income tax expense and tax at the statutory rate Loss before income tax expense (417,046 ) (59,151 ) (2,142 ) Tax at the statutory tax rate of 30% (2021: 26%, 2020: 27.5%) (125,114 ) (15,379 ) (589 ) Tax effect amounts which are not deductible/(taxable) in calculating taxable income: Non-deductible/non-allowable items 128,643 16,061 58 3,529 682 (531 ) Current year tax losses not recognized 534 704 416 Recognition of previously unrecognized tax losses (1,019 ) (240 ) - Difference in overseas tax rates 203 (3 ) (4 ) Impact of future tax rate changes - 94 16 Current year temporary differences not recognized - 2 103 Prior year current tax under/(over) provision (523 ) - - Income tax expense 2,724 1,239 - |
Income Tax Expense | Consolidated Year ended 30 June 2022 Year ended 30 June 2021 (restated*) Year ended 30 June 2020 (restated*) US$’000 US$’000 US$’000 Income tax expense Current tax 672 532 - Deferred tax 2,052 707 - Income tax expense 2,724 1,239 - |
Unrecognized Deferred Tax Assets | Unrecognized deferred tax assets Consolidated 30 June 2022 30 June 2021 (restated*) 30 June 2020 (restated*) US$’000 US$’000 US$’000 Available tax losses 19,268 7,239 4,065 Tax effect at the applicable tax rate for each jurisdiction 5,117 1,887 1,021 Deferred tax asset on tax losses recognized to the extent of taxable temporary differences 3,854 798 649 Deferred tax asset on losses not recognized 1,263 1,089 372 |
Movement in Deferred Tax Assets and Liability Balances | Recognized deferred tax assets and liabilities on the consolidated statement of financial position The following are the major deferred tax assets and liabilities recognised by the Group and movements thereon during the current and prior reporting period. Deferred tax assets Tax losses Employee benefits Property, plant and equipment Unrealized foreign exchange losses Capital raising costs Other deferred tax assets Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 As at 1 July 2020 - - - - - - - Credit/(charge) to profit or loss 798 31 - - 82 - 911 Credit direct to equity - - - - - - - As at 30 June 2021 (*restated) 798 31 - - 82 - 911 Credit/(charge) to profit or loss 3,056 82 15 725 (260 ) 1,222 4,840 Credit direct to equity - - - - 4,805 - 4,805 3,854 113 15 725 4,627 1,222 10,556 Offset against deferred tax liability (8,321 ) As at 30 June 2022 2,235 Deferred tax liabilities Property, plant and equipment Unrealized foreign exchange gains Other deferred tax liabilities Total US$'000 US$'000 US$'000 US$'000 As at 1 July 2020 - - - - Credit/(charge) to profit or loss (798 ) (820 ) - (1,618 ) Credit direct to equity - - - - As at 30 June 2021 (*restated) (798 ) (820 ) - (1,618 ) Credit/(charge) to profit or loss (3,894 ) (2,651 ) (347 ) (6,892 ) Credit direct to equity - - - - (4,692 ) (3,471 ) (347 ) (8,510 ) Offset against deferred tax asset 8,321 As at 30 June 2022 (189 ) |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Cash and cash equivalents [Abstract] | |
Cash and Cash Equivalents | Consolidated 30 June 2022 30 June 2021 (restated*) US$’000 US$’000 Current assets Cash at bank 109,970 38,990 |
Other receivables (Tables)
Other receivables (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Other receivables [Abstract] | |
Other Receivables | Consolidated 30 June 2022 30 June 2021 (restated*) US$’000 US$’000 Current assets Other receivables 1 55 Loan receivable 2,320 - Provincial sales tax receivable 10,023 - Interest receivable 75 1 GST receivable 11,235 737 23,654 793 |
Mining hardware prepayments (Ta
Mining hardware prepayments (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Mining hardware prepayments [Abstract] | |
Mining Hardware Prepayments | Consolidated 30 June 2022 30 June 2021 (restated*) US$’000 US$’000 Non-current assets Mining hardware prepayments 158,184 75,129 |
Prepayments and deposits (Table
Prepayments and deposits (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Prepayments and deposits [Abstract] | |
Prepayments and Deposits | Consolidated 30 June 2022 30 June 2021 (restated*) US$’000 US$’000 Current assets Security deposits 18,972 155 Prepayments 7,658 492 26,630 647 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Property, plant and equipment [Abstract] | |
Consolidated Property, Plant and Equipment | Consolidated 30 June 2022 30 June 2021 (restated*) US$’000 US$’000 Non-current assets Land – at cost 1,836 403 Buildings – at cost 13,768 3,511 Less: Accumulated depreciation (686 ) (231 ) 13,082 3,280 Plant and equipment – at cost 3,564 2,844 Less: Accumulated depreciation (364 ) (157 ) 3,200 2,687 Mining hardware – at cost 171,120 5,448 Less: Accumulated depreciation (7,973 ) (1,181 ) Less: Impairment - (346 ) 163,147 3,921 Assets under construction – at cost 66,297 5,644 247,562 15,935 |
Reconciliations of Written Down Values of Property, Plant and Equipment | Reconciliations Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below: Land Buildings Plant and equipment Mining hardware Assets under construction Total Consolidated US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 Balance as at 1 July 2020 166 3,085 1,275 3,512 - 8,038 Additions 229 150 1,371 1,653 5,550 8,953 Disposals - - (2 ) (202 ) - (204 ) Exchange differences 8 293 161 233 94 789 Impairment of assets - (79 ) - (353 ) - (432 ) Depreciation expense (note 6) - (169 ) (118 ) (922 ) - (1,209 ) Balance as at 30 June 2021 403 3,280 2,687 3,921 5,644 15,935 Additions 1,466 10,603 844 168,899 61,650 243,462 Disposals - - - (28 ) - (28 ) Exchange differences (33 ) (330 ) (114 ) (2,651 ) (997 ) (4,125 ) Depreciation expense (note 6) - (471 ) (217 ) (6,994 ) - (7,682 ) Balance as at 30 June 2022 1,836 13,082 3,200 163,147 66,297 247,562 |
Right-of-use assets (Tables)
Right-of-use assets (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Right-of-use assets [Abstract] | |
Right-of-use Assets | Consolidated 30 June 2022 30 June 2021 (restated*) US$’000 US$’000 Non-current assets Land and buildings – right-of-use asset 1,309 1,051 Less: Accumulated depreciation (56 ) (8 ) 1,253 1,043 Prepaid hosting fees right-of-use asset - 431 Less: Accumulated depreciation - (70 ) - 361 1,253 1,404 |
Right-of-use Assets, Reconciliations of Written Down Values | Reconciliations Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below: Prepaid Land and buildings Total Consolidated US$’000 US$’000 US$’000 Balance as at 1 July 2020 397 - 397 Additions - 1,038 1,038 Exchange differences - 12 12 Depreciation (note 6) (36 ) (7 ) (43 ) Balance as at 30 June 2021 361 1,043 1,404 Additions - 298 298 Disposals (185 ) - (185 ) Exchange differences - (38 ) (38 ) Impairment of assets (167 ) - (167 ) Depreciation (note 6) (9 ) (50 ) (59 ) Balance as at 30 June 2022 - 1,253 1,253 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Goodwill [Abstract] | |
Carrying Amount of Goodwill | Consolidated 30 June 2022 30 June 2021 (restated*) US$’000 US$’000 Non-current assets Goodwill – at cost 634 659 |
Disclosure of Reconciliations of Goodwill Balance | Reconciliations of the goodwill balance at the beginning and end of the current and previous financial year is set out below: Consolidated Goodwill US$’000 Balance as at 1 July 2020 568 Exchange differences 91 Balance as at 30 June 2021 659 Exchange differences (25 ) Balance as at 30 June 2022 634 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Borrowings [Abstract] | |
Components of Borrowings | Consolidated 30 June 2022 30 June 2021 (restated*) US$’000 US$’000 Current liabilities Mining hardware finance 61,988 7,163 Capitalized borrowing costs – mining hardware finance (1,774 ) (1,116 ) Mining hardware finance accrued interest 189 - SAFE - 3,130 Convertible notes - 63,715 Capitalized borrowing costs – convertible notes - (914 ) Lease liability 81 5 60,484 71,983 Non-current liabilities Mining hardware finance 47,421 12,189 Capitalized borrowing costs – mining hardware finance (803 ) (1,353 ) Lease liability 1,185 1,004 47,803 11,840 108,287 83,823 |
Embedded derivatives (Tables)
Embedded derivatives (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Embedded derivatives [Abstract] | |
Embedded Derivatives | Consolidated 30 June 2022 30 June 2021 (restated*) US$’000 US$’000 Current liabilities held at fair value through profit or loss Embedded derivative – SAFE (issued 28 October 2020) - 7,424 Embedded derivative – convertible note (issued 5 January 2021) - 51,307 Embedded derivative – convertible note (issued 1 April 2021) - 37,990 - 96,721 |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Provisions [Abstract] | |
Provisions | Consolidated 30 June 2022 30 June 2021 (restated*) US$’000 US$’000 Current liabilities Provision for non-refundable sales tax 2,469 - |
Trade and other payables (Table
Trade and other payables (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Trade and other payables [Abstract] | |
Trade and Other Payables | Consolidated 30 June 2022 30 June 2021 (restated*) US$'000 US$'000 Current liabilities Trade payables 13,230 545 Other payables 197 99 Advance payment in relation to share-based payments - 183 Accrued expenses 5,386 291 18,813 1,118 |
Issued capital (Tables)
Issued capital (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Issued capital [Abstract] | |
Issued Capital | Consolidated 30 June 2022 30 June 2021 30 June 2022 30 June 2021 (restated*) Shares Shares US$’000 US$’000 Ordinary shares – fully paid and unrestricted 53,028,867 19,828,593 926,581 10,338 |
Movements in Ordinary Share Capital | Movements in ordinary share capital Details Date Shares US$’000 Balance 1 July 2020 19,828,593 10,338 Balance 1 July 2021 19,828,593 10,338 Conversion of hybrid financial instruments 16 November 2021 24,835,118 695,383 Ordinary shares issued (IPO) 17 November 2021 8,269,231 231,539 Share-based payments, prepaid in advance 31 December 2021 95,925 177 IPO capital raise costs, net of tax - (10,856 ) Balance 30 June 2022 53,028,867 926,581 |
Reserves (Tables)
Reserves (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Reserves [Abstract] | |
Reserves | Consolidated 30 June 2022 30 June 2021 (restated*) US$’000 US$’000 Foreign currency translation reserve (21,014 ) 1,851 Share-based payments reserve 14,200 992 (6,814 ) 2,843 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Earnings per share [Abstract] | |
Earnings Per Share Basic and Diluted | Year ended 30 June 2022 Year ended 30 June 2021 (restated*) Year ended 30 June 2020 (restated*) US$’000 US$’000 US$’000 Loss after income tax (419,770 ) (60,390 ) (2,142 ) Number Number Number Weighted average number of shares used in calculating basic earnings per share 40,941,074 20,629,327 16,117,168 Weighted average number of shares used in calculating diluted earnings per share 40,941,074 20,629,327 16,117,168 Cents Cents Cents Basic earnings per share (1,025.30 ) (292.74 ) (13.29 ) Diluted earnings per share (1,025.30 ) (292.74 ) (13.29 ) |
Financial instruments (Tables)
Financial instruments (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Financial instruments [Abstract] | |
Financial Asset or Liability by Currency | The Group’s exposure to foreign currency risk arises when a Group entity holds a financial asset or liability in a currency other than the functional currency of that entity. At the end of the reporting period, the Group’s exposure to foreign currency risk was as follows (denominated in US dollars): Assets Liabilities 30 June 2022 30 June 2021 (restated*) 30 June 2022 30 June 2021 (restated*) Consolidated US$’000 US$’000 US$’000 US$’000 US dollars 96,648 34,407 110,265 20,153 Canadian dollars 154,328 48,043 30,135 - 250,976 82,450 140,400 20,153 |
Sensitivity Analysis | The following table illustrates sensitivities to the Group’s exposure to changes in exchange rates. The sensitivity analysis includes external loans as well as loans to foreign operations within the Group where the denomination of the loan is in a currency other than the currency of the lender or the borrower. Strengthened Weakened Consolidated – 30 June 2022 Change % Effect on profit before tax US$’000 Effect on US$’000 Change % Effect on profit before tax US$’000 Effect on equity US$’000 US dollar 10 % (1,238 ) (1,238 ) 10 % 1,513 1,513 Canadian dollar 10 % 23,386 23,386 10 % (23,386 ) (23,386 ) Australian dollar 10 % (22,152 ) (22,152 ) 10 % 21,896 21,896 (4 ) (4 ) 23 23 Strengthened Weakened Consolidated – 30 June 2021 (restated*) Change % Effect on profit before tax US$’000 Effect on equity US$’000 Change % Effect on profit before tax US$’000 Effect on equity US$’000 US dollar 10 % 1,296 1,296 10 % (1,584 ) (1,584 ) Canadian dollar 10 % 6,733 6,733 10 % (6,733 ) (6,733 ) Australian dollar 10 % (8,104 ) (8,104 ) 10 % 8,212 8,212 (75 ) (75 ) (105 ) (105 ) |
Remaining Contractual Maturity for Financial Instrument Liabilities | The following table details the Group’s remaining contractual maturity for its financial instrument liabilities. The table has been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the financial liabilities are required to be paid. The tables include both interest and principal cash flows disclosed as remaining contractual maturities and therefore these totals may differ from their carrying amount in the consolidated statement of financial position. Weighted average contractual interest rate 1 year or less Between 1 and 2 years Between 2 and 5 years Over 5 years Remaining contractual maturities Consolidated – 30 June 2022 % US$’000 US$’000 US$’000 US$’000 US$’000 Non-derivatives Non-interest bearing Trade and other payables - 18,813 - - - 18,813 Interest-bearing – fixed rate Mining hardware finance 11.35 % 61,988 47,421 - - 109,409 Lease liability - 207 222 443 2,435 3,307 Total non-derivatives 81,008 47,643 443 2,435 131,529 Weighted average contractual interest rate 1 year or less Between 1 and 2 years Between 2 and 5 years Over 5 years Remaining contractual maturities Consolidated – 30 June 2021 (restated*) % US$’000 US$’000 US$’000 US$’000 US$’000 Non-derivatives Non-interest bearing Trade and other payables - 545 - - - 545 Interest-bearing – fixed rate Mining hardware finance 12.00 % 18,159 36,364 8,583 - 63,106 Convertible notes issued 5 January 2021 12.00 % 21,467 - - - 21,467 Convertible notes issued 1 April 2021 12.00 % 98,311 - - - 98,311 Lease liability - 98 106 319 2,638 3,161 Total non-derivatives 138,580 36,470 8,902 2,638 186,590 |
Fair value measurement (Tables)
Fair value measurement (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Fair value measurement [Abstract] | |
Carrying Value of Financial Liabilities | As at 30 June 2022, the carrying value of all of the Group’s financial liabilities represented a reasonable approximation of the fair value of such liabilities. Consolidated – 30 June 2021 (restated*) Level 1 US$’000 Level 2 US$’000 Level 3 US$’000 Total US$’000 Financial Liabilities Embedded derivative – SAFE (issued 28 October 2020) - - 7,424 7,424 Embedded derivative – convertible note (issued 5 January 2021) - - 51,307 51,307 Embedded derivative – convertible note (issued on 1 April 2021) - - 37,990 37,990 Total liabilities - - 96,721 96,721 |
Movements in Level 3 Liabilities | Movements in level 3 liabilities during the current and previous financial year are set out below: Embedded derivatives Total Consolidated US$’000 US$’000 Balance as at 1 July 2020 - - Fair value of embedded derivatives at issuance date 52,029 52,029 Loss recognized in profit and loss 44,692 44,692 Balance as at 30 June 2021 96,721 96,721 Fair value of embedded derivatives at issuance date 65,311 65,311 Loss recognized in profit and loss 390,743 390,743 Embedded derivatives converted to Equity on 16 November 2022 (552,775 ) (552,775 ) Balance as at 30 June 2022 - - |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Commitments [Abstract] | |
Maturity of Committed Amount Payable | The committed amounts are payable as set out below: Consolidated 30 June 2022 30 June 2021 (restated*) US$’000 US$’000 Amounts payable within 12 months of balance date 322,706 148,274 Amounts payable after 12 months of balance date 23,917 8,356 346,623 156,630 |
Interests in subsidiaries (Tabl
Interests in subsidiaries (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Interests in subsidiaries [Abstract] | |
Interests in Subsidiaries | The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the accounting policy described in note 2: Ownership interest Name Principal place of business / Country of incorporation 30 June 2022 % 30 June 2021 % Iris Energy Custodian Pty Ltd Australia 100 % 100 % SA 1 Holdings Ltd Australia 100 % 100 % SA 2 Holdings Ltd Australia 100 % 100 % Podtech Data Centers Inc. Canada 100 % 100 % IE CA 1 Holdings Ltd. Canada 100 % 100 % IE CA 2 Holdings Ltd. Canada 100 % 100 % IE CA 3 Holdings Ltd. Canada 100 % 100 % IE CA 4 Holdings Ltd. Canada 100 % 100 % IE CA 5 Holdings Ltd. Canada 100 % 100 % IE CA Development Holdings Ltd. Canada 100 % 100 % IE CA Development Holdings 2 Ltd. Canada 100 % 100 % IE CA Development Holdings 3 Ltd. Canada 100 % 100 % IE CA Development Holdings 4 Ltd. Canada 100 % 100 % IE CA Development Holdings 5 Ltd. Canada 100 % 100 % IE US 1, Inc. United States of America 100 % 100 % IE CA Development Holdings 7 Ltd. Canada 100 % - Iris Energy Holdings Pty Ltd. Australia 100 % - TAS 1 Holdings Ltd Australia 100 % - IE US Development Holdings 1 Inc. United States of America 100 % - IE US Holdings Inc. United States of America 100 % - IE US Development Holdings 3 Inc. United States of America 100 % - IE US Development Holdings 4 Inc. United States of America 100 % - IE US Operations Inc. United States of America 100 % - IE US Hardware 1 Inc. United States of America 100 % - IE US Hardware 2 Inc. United States of America 100 % - IE US Hardware 3 Inc. United States of America 100 % - IE US Hardware 4 Inc. United States of America 100 % - |
Reconciliation of loss after _2
Reconciliation of loss after income tax to net cash from/(used in) operating activities (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Reconciliation of loss after income tax to net cash from/(used in) operating activities [Abstract] | |
Reconciliation of Loss After Income Tax to Net Cash from Used in Operating Activities | Consolidated Year ended Year ended 30 June 2021 (restated*) Year ended 30 June 2020 (restated*) US$'000 US$'000 US$'000 Loss after income tax expense for the year (419,770 ) (60,390 ) (2,142 ) Adjustments for: Depreciation 7,741 1,252 757 Capital raising costs 4,212 - - Impairment of assets 167 432 - Net loss/(gain) on disposal of non-current assets (12 ) 202 - Unrealized foreign exchange gains (8,889 ) (2,729 ) - Loss on embedded derivatives held at fair value through profit or loss 390,743 44,692 - Interest expense on hybrid financial instruments 26,748 14,182 - Amortization of capitalized borrowing costs 2,508 1,968 - Share-based payment expense 13,896 805 179 Change in operating assets and liabilities: Increase in other receivables (72 ) (416 ) (329 ) Increase in deferred tax assets (9,645 ) (911 ) - Increase in trade and other payables 6,476 367 505 Increase in provision for income tax 671 533 - Increase in deferred tax liabilities 6,892 1,618 - Increase in employee benefits 2,026 66 43 Increase in other provisions 2,469 - - Decrease in operating deposits - 90 - Increase in prepayments and deposits (4,604 ) - - Net cash from/(used in) operating activities 21,557 1,761 (987 ) |
Non-cash investing and financ_2
Non-cash investing and financing activities (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Non-cash investing and financing activities [Abstract] | |
Non-cash Investing and Financing Activities | Consolidated Year ended 30 June 2022 Year ended 30 June 2021 (restated*) Year ended 30 June 2020 (restated*) US$'000 US$'000 US$'000 Convertible notes issued in lieu of interest/referral fees - (463 ) - Mining hardware finance additional fee (1,424 ) (2,426 ) - Mining hardware prepayments made directly by third party financier (37,980 ) (1,458 ) - Additions to right-of-use assets and lease liabilities 298 1,051 271 Shares issued in relation to business combinations - - 1,930 Vendor loan - - 1,980 (39,106 ) (3,296 ) 4,181 |
Share-based payments (Tables)
Share-based payments (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Share-based payments [Abstract] | |
Reconciliation of Outstanding Share Options | Set out below are summaries of options granted under all plans: Number of options Weighted average exercise price Number of options Weighted average exercise price 30 June 2022 30 June 2022 30 June 2021 30 June 2021 (restated*) Outstanding as at 1 July 4,143,415 $ 3.03 1,492,317 $ 1.53 Granted during the year 5,126,484 $ 71.19 2,693,944 $ 3.91 Forfeited during the year (259,352 ) $ 8.01 (42,846 ) $ 4.57 Outstanding at the end of the financial year 9,010,547 $ 41.67 4,143,415 $ 3.03 Exercisable at the end of the financial year 3,351,327 $ 3.04 302,000 $ 2.01 |
Measurement of Fair Value Arrangements Granted | The following table list the inputs used in measuring the fair value of arrangements granted during the years ended 30 June 2022, 30 June 2021 and 30 June 2020: Grant date Dividend yield Expected volatility Risk-free interest rate Expected life (weighted average) Grant date share price Exercise price (weighted average) Fair value (weighted average) Number of options granted % % % years US$ US$ US$ Employee Share Plan 04 April 2020 - 46 % 0.15 % 2.28 1.53 1.53 0.39 1,492,317 31 July 2020 - 60 % 0.15 % 2.00 2.37 2.12 0.83 453,516 10 May 2021 - 90 % 0.15 % 2.71 7.68 7.64 4.46 240,428 Employee Option Plan 28 July 2021 - 90 % 0.15 % 7.00 34.73 8.76 31.05 89,541 20 October 2021 - 90 % 0.15 % 7.00 34.80 36.45 26.50 53,223 17 June 2022 - 122 % 0.85 % 7.00 3.74 36.45 2.71 7,750 Executive Director Options 20 January 2021 - 60 % 0.15 % 4.90 2.71 3.86 0.81 2,000,000 Long-term Target Options 14 September 2021 - 90 % 1.28 % 9.00 34.17 75.00 23.87 4,800,000 NED Option Plan 28 July 2021 - 90 % 0.15 % 6.58 34.73 8.76 30.80 161,707 21 October 2021 - 90 % 0.15 % 7.00 34.80 36.45 26.50 14,266 |
Key management personnel disc_2
Key management personnel disclosures (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Key Management Personnel Disclosures [Abstract] | |
Directors and Key Management Personnel | The following persons were Directors of Iris Energy Limited at any time during the year, up to the date of this report: Individual Position Date of Commencement Date ceased to be KMP David Bartholomew Non-Executive Director 24 September 2021 - Christopher Guzowski Non-Executive Director 19 December 2019 - Michael Alfred Non-Executive Director 21 October 2021 - Daniel Roberts Executive Director and Co-CEO 6 November 2018 - William Roberts Executive Director and Co-CEO 6 November 2018 - Paul Gordon Non-Executive Director 19 December 2019 24 October 2021 The following persons were considered to be KMP of Iris Energy Limited at any time during the year: Individual Position Date of Commencement Date ceased to be KMP Lindsay Ward President 18 October 2021 - David Shaw Chief Operating Officer 22 October 2021 - Belinda Nucifora Chief Financial Officer 16 May 2022 - Jason Conroy Chief Executive Officer 10 May 2021 23 September 2021 |
Compensation made to Directors and Key Management Personnel | The aggregate compensation made to Directors and other members of KMP of the Group is set out below: Consolidated Year ended 30 June 2022 Year ended 30 June 2021 (restated*) US$ US$ Short-term employee benefits 1,610,088 368,493 Post-employment benefits 81,550 32,328 Share-based payments 13,314,679 174,603 15,006,317 575,424 The following table summarizes the movement in options outstanding issued to Directors and other members of KMP during the year ended 30 June 2022: Number of options Weighted average exercise price Number of options Weighted average exercise price 30 June 2022 30 June 2022 30 June 2021 30 June 2021 (restated*) Outstanding as at 1 July 2,136,171 $ 4.10 - - Granted during the year 5,014,834 $ 72.46 2,136,171 $ 4.10 Forfeited during the year (177,489 ) $ 7.90 - - Outstanding at the end of the financial year 6,973,516 $ 53.16 2,136,171 $ 4.10 Exercisable at the end of the financial year 2,035,278 $ 3.95 - - |
General information (Details)
General information (Details) | Nov. 17, 2021 USD ($) | Nov. 04, 2021 |
General information [Abstract] | ||
Gross proceeds from Initial public offering | $ 231,538,468 | |
Reverse stock split ratio | 0.2 |
Significant accounting polici_4
Significant accounting policies, Going Concern (Details) | 12 Months Ended | |||
Aug. 01, 2022 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2020 USD ($) | |
Going concern [Abstract] | ||||
Loss after income tax | $ (419,770,000) | $ (60,390,000) | $ (2,142,000) | |
Net operating cash inflows | 21,557,000 | 1,761,000 | (987,000) | |
Net current assets (liabilities) | 75,148,000 | (130,034,000) | ||
Net assets (liabilities) | 437,362,000 | (49,454,000) | ||
Mining hardware prepayments | $ 158,184,000 | 75,129,000 | 0 | |
Operating capacity hash rate | 6 | |||
Cash on hand utilized for mining assets | $ 210,593,000 | $ 73,815,000 | $ 0 | |
Remaining mining hardware prepayments | $ 83,340,000 | |||
Minimum [Member] | ||||
Going concern [Abstract] | ||||
Period to adequate cash reserves to enable to meet its obligations from date of approval | 1 year | |||
Mining Hardware [Member] | ||||
Going concern [Abstract] | ||||
Mining hardware prepayments | $ 158,184,000 | |||
Prepayments balance relates to operating capacity | $ 30,127,000 | |||
Operating capacity hash rate | 4.3 | |||
Amount of prepayments utilized | $ 46,006,000 | |||
Cash amount of prepayments | 46,670,000 | |||
Cash on hand utilized for mining assets | 5,900,000 | |||
Remaining mining hardware prepayments | $ 83,340,000 | |||
Mining Hardware [Member] | Subsequent Events [Member] | ||||
Going concern [Abstract] | ||||
Operating capacity hash rate | 6 | |||
Additional operating capacity hash rate | 1.7 | |||
Cash on hand utilized for mining assets | $ 5,869,000 | |||
Remaining mining hardware prepayments | $ 82,051,000 |
Significant accounting polici_5
Significant accounting policies, Revenue and Other Income Recognition, Property, Plant and Equipment and Trade and Other Payables (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue and other income recognition [Abstract] | ||
Bitcoin on hand | $ 0 | $ 0 |
Maximum [Member] | ||
Trade and other payables [Abstract] | ||
Period of unsecured amount paid | 30 days | |
Buildings [member] | ||
Property, plant and equipment [Abstract] | ||
Expected useful lives | 20 years | |
Plant and Equipment [Member] | Minimum [Member] | ||
Property, plant and equipment [Abstract] | ||
Expected useful lives | 3 years | |
Plant and Equipment [Member] | Maximum [Member] | ||
Property, plant and equipment [Abstract] | ||
Expected useful lives | 7 years | |
Mining Hardware [Member] | ||
Property, plant and equipment [Abstract] | ||
Expected useful lives | 4 years |
Critical accounting judgement_2
Critical accounting judgements, estimates and assumptions (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Critical accounting judgements, estimates and assumptions [Abstract] | |||
Impairment of non-financial assets other than goodwill | $ 167,000 | $ 432,000 | $ 0 |
Operating segments (Details)
Operating segments (Details) | 12 Months Ended | ||
Jun. 30, 2022 segment Customer | Jun. 30, 2021 Customer | Jun. 30, 2020 Customer | |
Operating segments [Abstract] | |||
Number of operating segment | segment | 1 | ||
Bitcoin Mining Revenues [Member] | |||
Operating segments [Abstract] | |||
Percent of mining revenues | 100% | 100% | 100% |
Number of bitcoin mining pools | Customer | 2 | 3 | 2 |
Other income (Details)
Other income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Other income [Abstract] | |||
Net gain on disposal of property, plant and equipment | $ 12 | $ 0 | $ 0 |
Government grants | 0 | 165 | 0 |
Insurance recoveries | 0 | 418 | 16 |
Proceeds from the issuance of options to Executive Directors | 0 | 7 | 0 |
Other income | $ 12 | $ 590 | $ 16 |
Depreciation (Details)
Depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Depreciations [Abstract] | |||
Depreciation of property, plant and equipment | $ 7,682 | $ 1,209 | $ 727 |
Depreciation of right-of-use assets | 59 | 43 | 30 |
Depreciation | $ 7,741 | $ 1,252 | $ 757 |
Other operating expenses (Detai
Other operating expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Other operating expenses [Abstract] | |||
Insurance | $ 5,065 | $ 95 | $ 44 |
Advertising, marketing and sponsorship | 305 | 29 | 7 |
Office rental and expenses | 177 | 92 | 18 |
Site expenses | 1,644 | 170 | 30 |
Charitable donations | 464 | 0 | 0 |
Filing fees | 462 | 1 | 0 |
Site identification costs | 258 | 0 | 0 |
Non-refundable sales tax | 2,469 | 0 | 0 |
Other expenses | 861 | 79 | 84 |
Other operating expenses | $ 11,705 | $ 466 | $ 183 |
Finance expense (Details)
Finance expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Finance expense [Abstract] | |||
Interest expense on borrowings | $ 5,343 | $ 311 | $ 102 |
Interest expense on hybrid financial instruments | 26,748 | 14,182 | 0 |
Interest expense on lease liabilities | 99 | 22 | 0 |
Amortization of capitalized borrowing costs | 2,508 | 1,968 | 0 |
Loss on embedded derivatives held at fair value through profit or loss | 390,743 | 44,692 | 0 |
Finance expense | $ 425,441 | $ 61,175 | $ 102 |
Income tax expense, Reconciliat
Income tax expense, Reconciliation at Statutory Tax Rate (Details) | 12 Months Ended | |||
Jun. 30, 2022 USD ($) | Jun. 30, 2022 AUD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2020 USD ($) | |
Numerical reconciliation of income tax expense and tax at the statutory rate [Abstract] | ||||
Loss before income tax expense | $ (417,046,000) | $ (59,151,000) | $ (2,142,000) | |
Tax at the statutory tax rate of 30% (2021: 26%, 2020: 27.5%) | (125,114,000) | (15,379,000) | (589,000) | |
Tax effect amounts which are not deductible/(taxable) in calculating taxable income [Abstract] | ||||
Non-deductible/non-allowable items | 128,643,000 | 16,061,000 | 58,000 | |
Tax effect of tax losses | 3,529,000 | 682,000 | (531,000) | |
Current year tax losses not recognized | 534,000 | 704,000 | 416,000 | |
Recognition of previously unrecognized tax losses | (1,019,000) | (240,000) | 0 | |
Difference in overseas tax rates | 203,000 | (3,000) | (4,000) | |
Impact of future tax rate changes | 0 | 94,000 | 16,000 | |
Current year temporary differences not recognized | 0 | 2,000 | 103,000 | |
Prior year current tax under/(over) provisions | (523,000) | 0 | 0 | |
Income tax expense | $ 2,724,000 | $ 1,239,000 | $ 0 | |
Statutory tax rate | 30% | 30% | 26% | 27.50% |
Aggregate turnover of Base Rate Entity | $ 34,474,000 | $ 50,000,000 |
Income tax expense, Income Tax
Income tax expense, Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income tax expense [Abstract] | |||
Current tax | $ 672 | $ 532 | $ 0 |
Deferred tax | 2,052 | 707 | 0 |
Income tax expense | $ 2,724 | $ 1,239 | $ 0 |
Income tax expense, Unrecognize
Income tax expense, Unrecognized Deferred Tax Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Unrecognized deferred tax assets [Abstract] | |||
Available tax losses | $ 19,268 | $ 7,239 | $ 4,065 |
Tax effect at the applicable tax rate for each jurisdiction | 5,117 | 1,887 | 1,021 |
Deferred tax asset on tax losses recognized to the extent of taxable temporary differences | 3,854 | 798 | 649 |
Deferred tax asset on losses not recognized | $ 1,263 | $ 1,089 | $ 372 |
Income tax expense, Movement in
Income tax expense, Movement in Deferred Tax Balances (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Movement in deferred tax assets [Abstract] | |||
Deferred tax assets | $ 911,000 | $ 0 | |
Credit/(charge) to profit or loss | 4,840,000 | 911,000 | |
Credit direct to equity | 4,805,000 | 0 | |
Deferred tax asset gross | 10,556,000 | 911,000 | |
Offset against deferred tax liability | (8,321,000) | ||
Deferred tax assets | 2,235,000 | 911,000 | $ 0 |
Movement in deferred tax liabilities [Abstract] | |||
Deferred tax liabilities | 1,618,000 | 0 | |
Credit/(charge) to profit or loss | (6,892,000) | (1,618,000) | |
Credit direct to equity | 0 | 0 | |
Deferred tax liabilities | (8,510,000) | (1,618,000) | |
Offset against deferred tax asset | 8,321,000 | ||
Deferred tax liabilities | (189,000) | (1,618,000) | $ 0 |
Increase in gross deferred tax assets | 9,645,000 | ||
Increase in deferred tax liabilities | 6,892,000 | ||
Tax Losses [Member] | |||
Movement in deferred tax assets [Abstract] | |||
Deferred tax assets | 798,000 | 0 | |
Credit/(charge) to profit or loss | 3,056,000 | 798,000 | |
Credit direct to equity | 0 | 0 | |
Deferred tax asset gross | 3,854,000 | 798,000 | |
Employee Benefits [Member] | |||
Movement in deferred tax assets [Abstract] | |||
Deferred tax assets | 31,000 | 0 | |
Credit/(charge) to profit or loss | 82,000 | 31,000 | |
Credit direct to equity | 0 | 0 | |
Deferred tax asset gross | 113,000 | 31,000 | |
Property, Plant and Equipment [Member] | |||
Movement in deferred tax assets [Abstract] | |||
Deferred tax assets | 0 | 0 | |
Credit/(charge) to profit or loss | 15,000 | 0 | |
Credit direct to equity | 0 | 0 | |
Deferred tax asset gross | 15,000 | 0 | |
Movement in deferred tax liabilities [Abstract] | |||
Deferred tax liabilities | 798,000 | 0 | |
Credit/(charge) to profit or loss | (3,894,000) | (798,000) | |
Credit direct to equity | 0 | 0 | |
Deferred tax liabilities | (4,692,000) | (798,000) | |
Unrealized Foreign Exchange Losses (Gains) [Member] | |||
Movement in deferred tax assets [Abstract] | |||
Deferred tax assets | 0 | 0 | |
Credit/(charge) to profit or loss | 725,000 | 0 | |
Credit direct to equity | 0 | 0 | |
Deferred tax asset gross | 725,000 | 0 | |
Movement in deferred tax liabilities [Abstract] | |||
Deferred tax liabilities | 820,000 | 0 | |
Credit/(charge) to profit or loss | (2,651,000) | (820,000) | |
Credit direct to equity | 0 | 0 | |
Deferred tax liabilities | (3,471,000) | (820,000) | |
Capital Raising Costs [Member] | |||
Movement in deferred tax assets [Abstract] | |||
Deferred tax assets | 82,000 | 0 | |
Credit/(charge) to profit or loss | (260,000) | 82,000 | |
Credit direct to equity | 4,805,000 | 0 | |
Deferred tax asset gross | 4,627,000 | 82,000 | |
Other Deferred Tax Assets [Member] | |||
Movement in deferred tax assets [Abstract] | |||
Deferred tax assets | 0 | 0 | |
Credit/(charge) to profit or loss | 1,222,000 | 0 | |
Credit direct to equity | 0 | 0 | |
Deferred tax asset gross | 1,222,000 | 0 | |
Other Deferred Tax Liabilities [Member] | |||
Movement in deferred tax liabilities [Abstract] | |||
Deferred tax liabilities | 0 | 0 | |
Credit/(charge) to profit or loss | (347,000) | 0 | |
Credit direct to equity | 0 | 0 | |
Deferred tax liabilities | $ (347,000) | $ 0 |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Current assets [Abstract] | ||
Cash at bank | $ 109,970 | $ 38,990 |
Other receivables (Details)
Other receivables (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Current assets [Abstract] | |||
Other receivables | $ 1 | $ 55 | |
Loan receivables | 2,320 | 0 | |
Provincial sales tax receivable | 10,023 | 0 | |
Interest receivable | 75 | 1 | |
GST receivable | 11,235 | 737 | |
Other receivables | $ 23,654 | $ 793 | $ 331 |
Mining hardware prepayments (De
Mining hardware prepayments (Details) | 12 Months Ended | ||||
Aug. 01, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) Agreement BusinessDay | Jun. 30, 2021 USD ($) | Jun. 30, 2020 USD ($) | |
Non-current assets [abstract] | |||||
Mining hardware prepayments | $ 158,184,000 | $ 75,129,000 | $ 0 | ||
Mining Hardware Prepayments [Abstract] | |||||
Operating capacity hash rate | 6 | ||||
Remaining mining hardware prepayments | $ 83,340,000 | ||||
First Two Purchase Agreement with Bitmain [Member] | |||||
Mining Hardware Prepayments [Abstract] | |||||
Operating capacity hash rate | 4.3 | ||||
Third Purchase Agreement with Bitmain [Member] | |||||
Mining Hardware Prepayments [Abstract] | |||||
Operating capacity hash rate | 10 | ||||
Third Purchase Agreement with Bitmain [Member] | Subsequent Events [Member] | |||||
Mining Hardware Prepayments [Abstract] | |||||
Operating capacity hash rate | 6 | ||||
Additional operating capacity hash rate | 1.7 | ||||
Mining Hardware [Member] | |||||
Non-current assets [abstract] | |||||
Mining hardware prepayments | $ 158,184,000 | ||||
Mining Hardware Prepayments [Abstract] | |||||
Number of binding hardware purchase agreements | Agreement | 3 | ||||
Operating capacity hash rate | 4.3 | ||||
Remaining mining hardware prepayments | $ 83,340,000 | ||||
Mining Hardware [Member] | Forecast [Member] | |||||
Non-current assets [abstract] | |||||
Mining hardware prepayments | $ 76,133,000 | ||||
Mining Hardware Prepayments [Abstract] | |||||
Operating capacity hash rate | 6 | ||||
Mining Hardware [Member] | Subsequent Events [Member] | |||||
Mining Hardware Prepayments [Abstract] | |||||
Operating capacity hash rate | 6 | ||||
Remaining mining hardware prepayments | $ 82,051,000 | ||||
Mining Hardware [Member] | First Two Purchase Agreement with Bitmain [Member] | |||||
Mining Hardware Prepayments [Abstract] | |||||
Operating capacity hash rate | 4.3 | ||||
Mining Hardware [Member] | Third Purchase Agreement with Bitmain [Member] | |||||
Mining Hardware Prepayments [Abstract] | |||||
Operating capacity hash rate | 10 | ||||
Hardware purchase agreement | $ 400,000,000 | ||||
Percentage of purchase price | 25% | ||||
Percentage of purchase price liable for reasonable, non-penalty liquidated damages | 20% | ||||
Mining Hardware [Member] | Third Purchase Agreement with Bitmain [Member] | Minimum [Member] | |||||
Mining Hardware Prepayments [Abstract] | |||||
Number of business days prior to the relevant deadline | BusinessDay | 5 | ||||
Mining Hardware [Member] | Third Purchase Agreement with Bitmain [Member] | Subsequent Events [Member] | |||||
Mining Hardware Prepayments [Abstract] | |||||
Operating capacity hash rate | 6 | ||||
Additional operating capacity hash rate | 1.7 |
Prepayments and deposits (Detai
Prepayments and deposits (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Current assets [Abstract] | |||
Security deposits | $ 18,972 | $ 155 | |
Prepayments | 7,658 | 492 | |
Prepayments and deposits | $ 26,630 | $ 647 | $ 283 |
Property, plant and equipment,
Property, plant and equipment, Consolidated (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Non-current assets [Abstract] | |||
Property, plant and equipment | $ 247,562 | $ 15,935 | $ 8,038 |
Land [Member] | |||
Non-current assets [Abstract] | |||
Property, plant and equipment | 1,836 | 403 | 166 |
Land [Member] | At Cost [Member] | |||
Non-current assets [Abstract] | |||
Property, plant and equipment | 1,836 | 403 | |
Buildings [Member] | |||
Non-current assets [Abstract] | |||
Property, plant and equipment | 13,082 | 3,280 | 3,085 |
Buildings [Member] | At Cost [Member] | |||
Non-current assets [Abstract] | |||
Property, plant and equipment | 13,768 | 3,511 | |
Buildings [Member] | Accumulated Depreciation [Member] | |||
Non-current assets [Abstract] | |||
Property, plant and equipment | (686) | (231) | |
Plant and Equipment [Member] | |||
Non-current assets [Abstract] | |||
Property, plant and equipment | 3,200 | 2,687 | 1,275 |
Plant and Equipment [Member] | At Cost [Member] | |||
Non-current assets [Abstract] | |||
Property, plant and equipment | 3,564 | 2,844 | |
Plant and Equipment [Member] | Accumulated Depreciation [Member] | |||
Non-current assets [Abstract] | |||
Property, plant and equipment | (364) | (157) | |
Mining Hardware [Member] | |||
Non-current assets [Abstract] | |||
Property, plant and equipment | 163,147 | 3,921 | 3,512 |
Mining Hardware [Member] | At Cost [Member] | |||
Non-current assets [Abstract] | |||
Property, plant and equipment | 171,120 | 5,448 | |
Mining Hardware [Member] | Accumulated Depreciation [Member] | |||
Non-current assets [Abstract] | |||
Property, plant and equipment | (7,973) | (1,181) | |
Mining Hardware [Member] | Impairment [Member] | |||
Non-current assets [Abstract] | |||
Property, plant and equipment | 0 | (346) | |
Assets Under Construction [Member] | |||
Non-current assets [Abstract] | |||
Property, plant and equipment | 66,297 | 5,644 | $ 0 |
Assets Under Construction [Member] | At Cost [Member] | |||
Non-current assets [Abstract] | |||
Property, plant and equipment | $ 66,297 | $ 5,644 |
Property, plant and equipment_2
Property, plant and equipment, Reconciliations of Written Down Values (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Reconciliations of Written Down Values of Property, Plant and Equipment [Abstract] | |||
Property, plant and equipment, beginning balance | $ 15,935 | $ 8,038 | |
Additions | 243,462 | 8,953 | |
Disposals | (28) | (204) | |
Exchange differences | (4,125) | 789 | |
Impairment of assets | (432) | ||
Depreciation expense (note 6) | (7,682) | (1,209) | $ (727) |
Property, plant and equipment, ending balance | 247,562 | 15,935 | 8,038 |
Land [Member] | |||
Reconciliations of Written Down Values of Property, Plant and Equipment [Abstract] | |||
Property, plant and equipment, beginning balance | 403 | 166 | |
Additions | 1,466 | 229 | |
Disposals | 0 | 0 | |
Exchange differences | (33) | 8 | |
Impairment of assets | 0 | ||
Depreciation expense (note 6) | 0 | 0 | |
Property, plant and equipment, ending balance | 1,836 | 403 | 166 |
Buildings [Member] | |||
Reconciliations of Written Down Values of Property, Plant and Equipment [Abstract] | |||
Property, plant and equipment, beginning balance | 3,280 | 3,085 | |
Additions | 10,603 | 150 | |
Disposals | 0 | 0 | |
Exchange differences | (330) | 293 | |
Impairment of assets | (79) | ||
Depreciation expense (note 6) | (471) | (169) | |
Property, plant and equipment, ending balance | 13,082 | 3,280 | 3,085 |
Plant and Equipment [Member] | |||
Reconciliations of Written Down Values of Property, Plant and Equipment [Abstract] | |||
Property, plant and equipment, beginning balance | 2,687 | 1,275 | |
Additions | 844 | 1,371 | |
Disposals | 0 | (2) | |
Exchange differences | (114) | 161 | |
Impairment of assets | 0 | ||
Depreciation expense (note 6) | (217) | (118) | |
Property, plant and equipment, ending balance | 3,200 | 2,687 | 1,275 |
Mining Hardware [Member] | |||
Reconciliations of Written Down Values of Property, Plant and Equipment [Abstract] | |||
Property, plant and equipment, beginning balance | 3,921 | 3,512 | |
Additions | 168,899 | 1,653 | |
Disposals | (28) | (202) | |
Exchange differences | (2,651) | 233 | |
Impairment of assets | (353) | ||
Depreciation expense (note 6) | (6,994) | (922) | |
Property, plant and equipment, ending balance | 163,147 | 3,921 | 3,512 |
Assets Under Construction [Member] | |||
Reconciliations of Written Down Values of Property, Plant and Equipment [Abstract] | |||
Property, plant and equipment, beginning balance | 5,644 | 0 | |
Additions | 61,650 | 5,550 | |
Disposals | 0 | 0 | |
Exchange differences | (997) | 94 | |
Impairment of assets | 0 | ||
Depreciation expense (note 6) | 0 | 0 | |
Property, plant and equipment, ending balance | $ 66,297 | $ 5,644 | $ 0 |
Right-of-use assets, Informatio
Right-of-use assets, Information (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Non-current assets [abstract] | |||
Right-of-use assets | $ 1,253 | $ 1,404 | $ 397 |
Land and Buildings [Member] | |||
Non-current assets [abstract] | |||
Right-of-use assets | 1,253 | 1,043 | 0 |
Land and Buildings [Member] | Gross Carrying Amount [Member] | |||
Non-current assets [abstract] | |||
Right-of-use assets | 1,309 | 1,051 | |
Land and Buildings [Member] | Accumulated Depreciation [Member] | |||
Non-current assets [abstract] | |||
Right-of-use assets | (56) | (8) | |
Prepaid Hosting Fees [Member] | |||
Non-current assets [abstract] | |||
Right-of-use assets | 0 | 361 | $ 397 |
Prepaid Hosting Fees [Member] | Gross Carrying Amount [Member] | |||
Non-current assets [abstract] | |||
Right-of-use assets | 0 | 431 | |
Prepaid Hosting Fees [Member] | Accumulated Depreciation [Member] | |||
Non-current assets [abstract] | |||
Right-of-use assets | $ 0 | $ (70) |
Right-of-use assets, Reconcilia
Right-of-use assets, Reconciliations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Right-of-use assets [abstract] | |||
Balance as at beginning of the period | $ 1,404 | $ 397 | |
Additions | 298 | 1,038 | |
Disposals | (185) | ||
Exchange differences | (38) | 12 | |
Impairment of assets | (167) | ||
Depreciation (note 6) | (59) | (43) | $ (30) |
Balance as at Ending of the period | 1,253 | 1,404 | 397 |
Prepaid Hosting Fees [Member] | |||
Right-of-use assets [abstract] | |||
Balance as at beginning of the period | 361 | 397 | |
Additions | 0 | 0 | |
Disposals | (185) | ||
Exchange differences | 0 | 0 | |
Impairment of assets | (167) | ||
Depreciation (note 6) | (9) | (36) | |
Balance as at Ending of the period | 0 | 361 | 397 |
Land and Buildings [Member] | |||
Right-of-use assets [abstract] | |||
Balance as at beginning of the period | 1,043 | 0 | |
Additions | 298 | 1,038 | |
Disposals | 0 | ||
Exchange differences | (38) | 12 | |
Impairment of assets | 0 | ||
Depreciation (note 6) | (50) | (7) | |
Balance as at Ending of the period | $ 1,253 | $ 1,043 | $ 0 |
Lease term | 30 years | ||
Corporate Office [Member] | |||
Right-of-use assets [abstract] | |||
Lease term | 3 years |
Goodwill, Information (Details)
Goodwill, Information (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Non-current assets [abstract] | |||
Goodwill at cost | $ 634 | $ 659 | $ 568 |
Goodwill, Reconciliations of go
Goodwill, Reconciliations of goodwill balance (Details) | 12 Months Ended | |
Jun. 30, 2022 USD ($) Unit | Jun. 30, 2021 USD ($) | |
Goodwill [Abstract] | ||
Goodwill at beginning of the period | $ 659,000 | $ 568,000 |
Exchange differences | (25,000) | 91,000 |
Goodwill at ending of the period | $ 634,000 | $ 659,000 |
Number of cash generating units | Unit | 1 | |
Estimated cash flows period | 3 years | |
Growth rate | 2.50% | |
Pre-tax discount rate | 23.50% | |
Impairment | $ 0 | |
Operating hashrate | 6 |
Borrowings, Components of Borro
Borrowings, Components of Borrowings (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Current liabilities [abstract] | |||
Current liabilities | $ 60,484 | $ 71,983 | $ 1,961 |
Non-current liabilities [abstract] | |||
Non-current liabilities | 47,803 | 11,840 | $ 0 |
Liabilities | 108,287 | 83,823 | |
Mining Hardware Finance [Member] | |||
Current liabilities [abstract] | |||
Current borrowings before capitalized borrowing costs | 61,988 | 7,163 | |
Capitalized borrowing costs, current | (1,774) | (1,116) | |
Non-current liabilities [abstract] | |||
Non-current borrowings before capitalized borrowing costs | 47,421 | 12,189 | |
Capitalized borrowing costs, non current | (803) | (1,353) | |
Mining Hardware Finance Accrued Interest [Member] | |||
Current liabilities [abstract] | |||
Current liabilities | 189 | 0 | |
SAFE (Issued 28 October 2020) [Member] | |||
Current liabilities [abstract] | |||
Current liabilities | 0 | 3,130 | |
Convertible Notes [Member] | |||
Current liabilities [abstract] | |||
Current liabilities | 0 | 63,715 | |
Capitalized borrowing costs, current | 0 | (914) | |
Lease Liability [Member] | |||
Current liabilities [abstract] | |||
Current liabilities | 81 | 5 | |
Non-current liabilities [abstract] | |||
Non-current liabilities | $ 1,185 | $ 1,004 |
Borrowings, Summary (Details)
Borrowings, Summary (Details) | 12 Months Ended | ||||
Jun. 30, 2022 USD ($) Prominer | Oct. 08, 2021 USD ($) | Jun. 30, 2021 USD ($) | Apr. 02, 2021 USD ($) | Jan. 05, 2021 USD ($) | |
Mining Hardware Finance [Member] | |||||
Borrowings [abstract] | |||||
Borrowings, interest rate | 12% | ||||
Borrowings, due date | September 25, 2023 | ||||
Mining Hardware Finance [Member] | NYDIG ABL LLC [Member] | |||||
Borrowings [abstract] | |||||
Borrowings, interest rate | 11% | ||||
Borrowings, due date | April 2024 | ||||
Contractual borrowing face value | $ 71,196,000 | ||||
Contractual term | 25 months | ||||
Number of Bitmain Pro miners | Prominer | 19,800 | ||||
Hash rate | 1.98 | ||||
SAFE (Issued 28 October 2020) [Member] | |||||
Borrowings [abstract] | |||||
Contractual borrowing face value | $ 2,955,000 | ||||
Contractual term | 12 months | ||||
Convertible Notes [Member] | |||||
Borrowings [abstract] | |||||
Borrowings, interest rate | 12% | 12% | 12% | ||
Contractual borrowing face value | $ 111,484,000 | $ 83,345,000 | $ 19,606,000 | ||
Contractual term | 12 months | ||||
Lease Liabilities [Member] | Prince George, British Columbia, Canada [Member] | |||||
Borrowings [abstract] | |||||
Lease term | 30 years | ||||
Lease Liabilities [Member] | Sydney, Australia [Member] | |||||
Borrowings [abstract] | |||||
Lease term | 3 years |
Embedded derivatives (Details)
Embedded derivatives (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Current liabilities held at fair value through profit or loss [Abstract] | |||
Embedded derivatives | $ 0 | $ 96,721 | $ 0 |
SAFE (Issued 28 October 2020) [Member] | |||
Current liabilities held at fair value through profit or loss [Abstract] | |||
Embedded derivatives | 0 | 7,424 | |
Convertible Note (Issued 5 January 2021) [Member] | |||
Current liabilities held at fair value through profit or loss [Abstract] | |||
Embedded derivatives | 0 | 51,307 | |
Convertible Note (Issued on 1 April 2021) [Member] | |||
Current liabilities held at fair value through profit or loss [Abstract] | |||
Embedded derivatives | $ 0 | $ 37,990 |
Provisions (Details)
Provisions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Current liabilities [Abstract] | ||
Provision for non-refundable sales tax | $ 2,469 | $ 0 |
GST receivable | 11,235 | 737 |
Refund receivable from CRA | 8,766 | |
Other provisions | $ 0 | $ 0 |
CANADA [Member] | ||
Current liabilities [Abstract] | ||
Percentage of GST required to remit | 5% | |
Percentage of GST on exported services | 0% |
Trade and other payables (Detai
Trade and other payables (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Current liabilities [Abstract] | |||
Trade payables | $ 13,230 | $ 545 | |
Other payables | 197 | 99 | |
Advance payment in relation to share-based payments | 0 | 183 | |
Accrued expenses | 5,386 | 291 | |
Trade and other payables | $ 18,813 | $ 1,118 | $ 751 |
Issued capital, Ordinary shares
Issued capital, Ordinary shares (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Ordinary share capital [abstract] | |||
Ordinary shares - fully paid and unrestricted | $ 926,581 | $ 10,338 | $ 10,338 |
Issued Capital [Member] | |||
Ordinary share capital [abstract] | |||
Ordinary shares - fully paid and unrestricted (in shares) | 53,028,867 | 19,828,593 | 19,828,593 |
Ordinary shares - fully paid and unrestricted | $ 926,581 | $ 10,338 | $ 10,338 |
Issued capital, Movements in Or
Issued capital, Movements in Ordinary Share Capital (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Nov. 17, 2021 | Nov. 16, 2021 | Jun. 30, 2022 | |
Issued capital [Abstract] | ||||
Balance | $ 10,338 | |||
Conversion of hybrid financial instruments | 695,383 | |||
Balance | $ 926,581 | |||
Issued Capital [Member] | ||||
Number of shares [Abstract] | ||||
Balance (in shares) | 19,828,593 | |||
Conversion of hybrid financial instruments (in shares) | 24,835,118 | |||
Ordinary shares issued (IPO) (in shares) | 8,269,231 | |||
Share-based payments, prepaid in advance (in shares) | 95,925 | |||
IPO capital raise costs, net of tax (in shares) | 0 | |||
Balance (in shares) | 53,028,867 | |||
Issued capital [Abstract] | ||||
Balance | $ 10,338 | |||
Conversion of hybrid financial instruments | $ 695,383 | 695,383 | ||
Ordinary shares issued (IPO) | $ 231,539 | |||
Share-based payments, prepaid in advance | $ 177 | |||
IPO capital raise costs, net of tax | (10,856) | |||
Balance | $ 926,581 |
Issued capital, Summary (Detail
Issued capital, Summary (Details) - USD ($) | 12 Months Ended | ||||
Nov. 17, 2021 | Nov. 16, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Initial Public offering [Abstract] | |||||
Proceeds from IPO offering | $ 231,538,468 | ||||
Conversion of hybrid financial instruments [Abstract] | |||||
Conversion of hybrid financial instruments | $ 695,383,000 | ||||
Share based payments, prepaid in advance [Abstract] | |||||
Number of restricted share-based payments, prepaid in advance (in shares) | 0 | 95,925 | 95,925 | ||
Ordinary Shares [Member] | |||||
Ordinary shares [Abstract] | |||||
Par value per share (in dollars per share) | $ 0 | ||||
Initial Public offering [Abstract] | |||||
IPO listed shares (in shares) | 55,036,108 | ||||
Shares issued (in shares) | 8,269,231 | ||||
Offering price (in dollars per share) | $ 28 | ||||
Proceeds from IPO offering | $ 215,330,775 | ||||
Conversion of hybrid financial instruments [Abstract] | |||||
Conversion of hybrid financial instruments (in shares) | 24,835,118 | ||||
Conversion of hybrid financial instruments | $ 695,383,000 | ||||
Conversion of hybrid financial instruments (in dollars per share) | $ 28 | ||||
Outstanding convertible instruments (in shares) | 0 | ||||
Loan-funded shares [Abstract] | |||||
Number of restricted shares issued (in shares) | 1,954,049 | 2,260,614 | |||
Number of shares outstanding (in shares) | 54,982,916 | 22,089,207 |
Reserves (Details)
Reserves (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Reserves [Abstract] | |||
Foreign currency translation reserve | $ (21,014) | $ 1,851 | |
Share-based payments reserve | 14,200 | 992 | |
Reserves | $ (6,814) | $ 2,843 | $ 725 |
Dividends (Details)
Dividends (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Dividends [Abstract] | ||
Dividends paid | $ 0 | $ 0 |
Dividends recommended or declared | $ 0 | $ 0 |
Earnings per share (Details)
Earnings per share (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings per share [Abstract] | |||
Loss after income tax | $ (419,770,000) | $ (60,390,000) | $ (2,142,000) |
Weighted average number of shares used in calculating basic earnings per share (in shares) | 40,941,074 | 20,629,327 | 16,117,168 |
Weighted average number of shares used in calculating diluted earnings per share (in shares) | 40,941,074 | 20,629,327 | 16,117,168 |
Basic earnings per share (in dollars per share) | $ (10.2530) | $ (2.9274) | $ (0.1329) |
Diluted earnings per share (in dollars per share) | $ (10.2530) | $ (2.9274) | $ (0.1329) |
Financial instruments, Foreign
Financial instruments, Foreign Currency Risk (Details) - Foreign Currency Risk [Member] - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Financial assets and liabilities [Abstract] | ||
Assets | $ 250,976 | $ 82,450 |
Liabilities | 140,400 | 20,153 |
US Dollars [Member] | ||
Financial assets and liabilities [Abstract] | ||
Assets | 96,648 | 34,407 |
Liabilities | 110,265 | 20,153 |
Canadian Dollars [Member] | ||
Financial assets and liabilities [Abstract] | ||
Assets | 154,328 | 48,043 |
Liabilities | $ 30,135 | $ 0 |
Financial instruments, Sensitiv
Financial instruments, Sensitivity Analysis (Details) - Foreign Currency Risk [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
10% Strengthened [Member] | ||
Sensitivity analysis [Abstract] | ||
Strengthened / weakened, effect on profit before tax | $ (4) | $ (75) |
Strengthened / weakened, effect on equity | (4) | (75) |
10% Weakened [Member] | ||
Sensitivity analysis [Abstract] | ||
Strengthened / weakened, effect on profit before tax | 23 | (105) |
Strengthened / weakened, effect on equity | 23 | (105) |
US Dollar [Member] | 10% Strengthened [Member] | ||
Sensitivity analysis [Abstract] | ||
Strengthened / weakened, effect on profit before tax | (1,238) | 1,296 |
Strengthened / weakened, effect on equity | (1,238) | 1,296 |
US Dollar [Member] | 10% Weakened [Member] | ||
Sensitivity analysis [Abstract] | ||
Strengthened / weakened, effect on profit before tax | 1,513 | (1,584) |
Strengthened / weakened, effect on equity | 1,513 | (1,584) |
Canadian Dollar [Member] | 10% Strengthened [Member] | ||
Sensitivity analysis [Abstract] | ||
Strengthened / weakened, effect on profit before tax | 23,386 | 6,733 |
Strengthened / weakened, effect on equity | 23,386 | 6,733 |
Canadian Dollar [Member] | 10% Weakened [Member] | ||
Sensitivity analysis [Abstract] | ||
Strengthened / weakened, effect on profit before tax | (23,386) | (6,733) |
Strengthened / weakened, effect on equity | (23,386) | (6,733) |
Australian Dollar [Member] | 10% Strengthened [Member] | ||
Sensitivity analysis [Abstract] | ||
Strengthened / weakened, effect on profit before tax | (22,152) | (8,104) |
Strengthened / weakened, effect on equity | (22,152) | (8,104) |
Australian Dollar [Member] | 10% Weakened [Member] | ||
Sensitivity analysis [Abstract] | ||
Strengthened / weakened, effect on profit before tax | 21,896 | 8,212 |
Strengthened / weakened, effect on equity | $ 21,896 | $ 8,212 |
Financial instruments, Price Ri
Financial instruments, Price Risk (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Price Risk [Member] | ||
Price Risk [abstract] | ||
Bitcoin held | $ 0 | $ 0 |
Financial Instruments, Liquidit
Financial Instruments, Liquidity Risk (Details) - Liquidity Risk [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Remaining contractual maturities [Abstract] | ||
Non-derivatives | $ 131,529 | $ 186,590 |
Non-interest Bearing [Member] | Trade and Other Payables [Member] | ||
Remaining contractual maturities [Abstract] | ||
Weighted average contractual interest rate | 0% | 0% |
Non-derivatives | $ 18,813 | $ 545 |
Interest-bearing - Fixed Rate [Member] | Mining Hardware Finance [Member] | ||
Remaining contractual maturities [Abstract] | ||
Weighted average contractual interest rate | 11.35% | 12% |
Non-derivatives | $ 109,409 | $ 63,106 |
Interest-bearing - Fixed Rate [Member] | Convertible Notes Issued 5 January 2021 [Member] | ||
Remaining contractual maturities [Abstract] | ||
Weighted average contractual interest rate | 12% | |
Non-derivatives | $ 21,467 | |
Interest-bearing - Fixed Rate [Member] | Convertible Notes Issued 1 April 2021 [Member] | ||
Remaining contractual maturities [Abstract] | ||
Weighted average contractual interest rate | 12% | |
Non-derivatives | $ 98,311 | |
Interest-bearing - Fixed Rate [Member] | Lease Liability [Member] | ||
Remaining contractual maturities [Abstract] | ||
Weighted average contractual interest rate | 0% | 0% |
Non-derivatives | $ 3,307 | $ 3,161 |
1 Year or Less [Member] | ||
Remaining contractual maturities [Abstract] | ||
Non-derivatives | 81,008 | 138,580 |
1 Year or Less [Member] | Non-interest Bearing [Member] | Trade and Other Payables [Member] | ||
Remaining contractual maturities [Abstract] | ||
Non-derivatives | 18,813 | 545 |
1 Year or Less [Member] | Interest-bearing - Fixed Rate [Member] | Mining Hardware Finance [Member] | ||
Remaining contractual maturities [Abstract] | ||
Non-derivatives | 61,988 | 18,159 |
1 Year or Less [Member] | Interest-bearing - Fixed Rate [Member] | Convertible Notes Issued 5 January 2021 [Member] | ||
Remaining contractual maturities [Abstract] | ||
Non-derivatives | 21,467 | |
1 Year or Less [Member] | Interest-bearing - Fixed Rate [Member] | Convertible Notes Issued 1 April 2021 [Member] | ||
Remaining contractual maturities [Abstract] | ||
Non-derivatives | 98,311 | |
1 Year or Less [Member] | Interest-bearing - Fixed Rate [Member] | Lease Liability [Member] | ||
Remaining contractual maturities [Abstract] | ||
Non-derivatives | 207 | 98 |
Between 1 and 2 Years [Member] | ||
Remaining contractual maturities [Abstract] | ||
Non-derivatives | 47,643 | 36,470 |
Between 1 and 2 Years [Member] | Non-interest Bearing [Member] | Trade and Other Payables [Member] | ||
Remaining contractual maturities [Abstract] | ||
Non-derivatives | 0 | 0 |
Between 1 and 2 Years [Member] | Interest-bearing - Fixed Rate [Member] | Mining Hardware Finance [Member] | ||
Remaining contractual maturities [Abstract] | ||
Non-derivatives | 47,421 | 36,364 |
Between 1 and 2 Years [Member] | Interest-bearing - Fixed Rate [Member] | Convertible Notes Issued 5 January 2021 [Member] | ||
Remaining contractual maturities [Abstract] | ||
Non-derivatives | 0 | |
Between 1 and 2 Years [Member] | Interest-bearing - Fixed Rate [Member] | Convertible Notes Issued 1 April 2021 [Member] | ||
Remaining contractual maturities [Abstract] | ||
Non-derivatives | 0 | |
Between 1 and 2 Years [Member] | Interest-bearing - Fixed Rate [Member] | Lease Liability [Member] | ||
Remaining contractual maturities [Abstract] | ||
Non-derivatives | 222 | 106 |
Between 2 and 5 Years [Member] | ||
Remaining contractual maturities [Abstract] | ||
Non-derivatives | 443 | 8,902 |
Between 2 and 5 Years [Member] | Non-interest Bearing [Member] | Trade and Other Payables [Member] | ||
Remaining contractual maturities [Abstract] | ||
Non-derivatives | 0 | 0 |
Between 2 and 5 Years [Member] | Interest-bearing - Fixed Rate [Member] | Mining Hardware Finance [Member] | ||
Remaining contractual maturities [Abstract] | ||
Non-derivatives | 0 | 8,583 |
Between 2 and 5 Years [Member] | Interest-bearing - Fixed Rate [Member] | Convertible Notes Issued 5 January 2021 [Member] | ||
Remaining contractual maturities [Abstract] | ||
Non-derivatives | 0 | |
Between 2 and 5 Years [Member] | Interest-bearing - Fixed Rate [Member] | Convertible Notes Issued 1 April 2021 [Member] | ||
Remaining contractual maturities [Abstract] | ||
Non-derivatives | 0 | |
Between 2 and 5 Years [Member] | Interest-bearing - Fixed Rate [Member] | Lease Liability [Member] | ||
Remaining contractual maturities [Abstract] | ||
Non-derivatives | 443 | 319 |
Over 5 Years [Member] | ||
Remaining contractual maturities [Abstract] | ||
Non-derivatives | 2,435 | 2,638 |
Over 5 Years [Member] | Non-interest Bearing [Member] | Trade and Other Payables [Member] | ||
Remaining contractual maturities [Abstract] | ||
Non-derivatives | 0 | 0 |
Over 5 Years [Member] | Interest-bearing - Fixed Rate [Member] | Mining Hardware Finance [Member] | ||
Remaining contractual maturities [Abstract] | ||
Non-derivatives | 0 | 0 |
Over 5 Years [Member] | Interest-bearing - Fixed Rate [Member] | Convertible Notes Issued 5 January 2021 [Member] | ||
Remaining contractual maturities [Abstract] | ||
Non-derivatives | 0 | |
Over 5 Years [Member] | Interest-bearing - Fixed Rate [Member] | Convertible Notes Issued 1 April 2021 [Member] | ||
Remaining contractual maturities [Abstract] | ||
Non-derivatives | 0 | |
Over 5 Years [Member] | Interest-bearing - Fixed Rate [Member] | Lease Liability [Member] | ||
Remaining contractual maturities [Abstract] | ||
Non-derivatives | $ 2,435 | $ 2,638 |
Fair value measurement, Fair Va
Fair value measurement, Fair Value Hierarchy (Details) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) Tranche | |
Financial liabilities [Abstract] | ||
Embedded derivative, liabilities | $ 96,721 | |
Number of tranches of convertible notes | Tranche | 2 | |
Transfers into level 3 | $ 0 | |
Transfers out of level 3 | $ 0 | |
Level 1 [Member] | ||
Financial liabilities [Abstract] | ||
Embedded derivative, liabilities | $ 0 | |
Level 2 [Member] | ||
Financial liabilities [Abstract] | ||
Embedded derivative, liabilities | 0 | |
Level 3 [Member] | ||
Financial liabilities [Abstract] | ||
Embedded derivative, liabilities | 96,721 | |
SAFE (Issued 28 October 2020) [Member] | ||
Financial liabilities [Abstract] | ||
Embedded derivative, liabilities | 7,424 | |
SAFE (Issued 28 October 2020) [Member] | Level 1 [Member] | ||
Financial liabilities [Abstract] | ||
Embedded derivative, liabilities | 0 | |
SAFE (Issued 28 October 2020) [Member] | Level 2 [Member] | ||
Financial liabilities [Abstract] | ||
Embedded derivative, liabilities | 0 | |
SAFE (Issued 28 October 2020) [Member] | Level 3 [Member] | ||
Financial liabilities [Abstract] | ||
Embedded derivative, liabilities | 7,424 | |
Convertible Note (Issued 5 January 2021) [Member] | ||
Financial liabilities [Abstract] | ||
Embedded derivative, liabilities | 51,307 | |
Convertible Note (Issued 5 January 2021) [Member] | Level 1 [Member] | ||
Financial liabilities [Abstract] | ||
Embedded derivative, liabilities | 0 | |
Convertible Note (Issued 5 January 2021) [Member] | Level 2 [Member] | ||
Financial liabilities [Abstract] | ||
Embedded derivative, liabilities | 0 | |
Convertible Note (Issued 5 January 2021) [Member] | Level 3 [Member] | ||
Financial liabilities [Abstract] | ||
Embedded derivative, liabilities | 51,307 | |
Convertible Note (Issued on 1 April 2021) [Member] | ||
Financial liabilities [Abstract] | ||
Embedded derivative, liabilities | 37,990 | |
Convertible Note (Issued on 1 April 2021) [Member] | Level 1 [Member] | ||
Financial liabilities [Abstract] | ||
Embedded derivative, liabilities | 0 | |
Convertible Note (Issued on 1 April 2021) [Member] | Level 2 [Member] | ||
Financial liabilities [Abstract] | ||
Embedded derivative, liabilities | 0 | |
Convertible Note (Issued on 1 April 2021) [Member] | Level 3 [Member] | ||
Financial liabilities [Abstract] | ||
Embedded derivative, liabilities | $ 37,990 |
Fair value measurement, Level 3
Fair value measurement, Level 3 Liabilities (Details) - Level 3 [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Reconciliation of changes in fair value measurement, liabilities [Abstract] | ||
Beginning balance | $ 96,721 | $ 0 |
Fair value of embedded derivatives at issuance date | 65,311 | 52,029 |
Loss recognized in profit or loss | 390,743 | 44,692 |
Embedded derivatives converted to Equity on 16 November 2022 | (552,775) | |
Ending balance | 0 | 96,721 |
Embedded Derivatives [Member] | ||
Reconciliation of changes in fair value measurement, liabilities [Abstract] | ||
Beginning balance | 96,721 | 0 |
Fair value of embedded derivatives at issuance date | 65,311 | 52,029 |
Loss recognized in profit or loss | 390,743 | 44,692 |
Embedded derivatives converted to Equity on 16 November 2022 | (552,775) | |
Ending balance | $ 0 | $ 96,721 |
Commitments (Details)
Commitments (Details) $ in Thousands | 12 Months Ended | ||
Aug. 01, 2022 | Jun. 30, 2022 USD ($) Agreement | Jun. 30, 2021 USD ($) | |
Committed Amounts Payable [Abstract] | |||
Commitments | $ 346,623 | $ 156,630 | |
Number of binding hardware purchase agreements made | Agreement | 3 | ||
Operating capacity hash rate | 6 | ||
First Two Purchase Agreement with Bitmain [Member] | |||
Committed Amounts Payable [Abstract] | |||
Operating capacity hash rate | 4.3 | ||
Third Purchase Agreement with Bitmain [Member] | |||
Committed Amounts Payable [Abstract] | |||
Commitments | $ 316,160 | ||
Operating capacity hash rate | 10 | ||
Purchase price of binding hardware for 10 EH/s of miners | $ 400,000 | ||
Percentage of non-penalty liquidated damages on purchase price | 20% | ||
Third Purchase Agreement with Bitmain [Member] | Minimum [Member] | |||
Committed Amounts Payable [Abstract] | |||
Number of business days required to obtain written consent | 5 days | ||
Third Purchase Agreement with Bitmain [Member] | Subsequent events [Member] | |||
Committed Amounts Payable [Abstract] | |||
Operating capacity hash rate | 6 | ||
Additional operating capacity hash rate | 1.7 | ||
Amounts Payable within 12 Months of Balance Date [Member] | |||
Committed Amounts Payable [Abstract] | |||
Commitments | $ 322,706 | 148,274 | |
Amounts Payable After 12 Months of Balance Date [Member] | |||
Committed Amounts Payable [Abstract] | |||
Commitments | $ 23,917 | $ 8,356 |
Interests in subsidiaries (Deta
Interests in subsidiaries (Details) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Iris Energy Custodian Pty Ltd [Member] | ||
List of Subsidiary Companies [Abstract] | ||
Name | Iris Energy Custodian Pty Ltd | |
Principal place of business / Country of incorporation | Australia | |
Ownership interest | 100% | 100% |
SA 1 Holdings Ltd [Member] | ||
List of Subsidiary Companies [Abstract] | ||
Name | SA 1 Holdings Ltd | |
Principal place of business / Country of incorporation | Australia | |
Ownership interest | 100% | 100% |
SA 2 Holdings Ltd [Member] | ||
List of Subsidiary Companies [Abstract] | ||
Name | SA 2 Holdings Ltd | |
Principal place of business / Country of incorporation | Australia | |
Ownership interest | 100% | 100% |
Podtech Data Centers Inc. [Member] | ||
List of Subsidiary Companies [Abstract] | ||
Name | Podtech Data Centers Inc. | |
Principal place of business / Country of incorporation | Canada | |
Ownership interest | 100% | 100% |
IE CA 1 Holdings Ltd. [Member] | ||
List of Subsidiary Companies [Abstract] | ||
Name | IE CA 1 Holdings Ltd. | |
Principal place of business / Country of incorporation | Canada | |
Ownership interest | 100% | 100% |
IE CA 2 Holdings Ltd. [Member] | ||
List of Subsidiary Companies [Abstract] | ||
Name | IE CA 2 Holdings Ltd. | |
Principal place of business / Country of incorporation | Canada | |
Ownership interest | 100% | 100% |
IE CA 3 Holdings Ltd. [Member] | ||
List of Subsidiary Companies [Abstract] | ||
Name | IE CA 3 Holdings Ltd. | |
Principal place of business / Country of incorporation | Canada | |
Ownership interest | 100% | 100% |
IE CA 4 Holdings Ltd. [Member] | ||
List of Subsidiary Companies [Abstract] | ||
Name | IE CA 4 Holdings Ltd. | |
Principal place of business / Country of incorporation | Canada | |
Ownership interest | 100% | 100% |
IE CA 5 Holdings Ltd. [Member] | ||
List of Subsidiary Companies [Abstract] | ||
Name | IE CA 5 Holdings Ltd. | |
Principal place of business / Country of incorporation | Canada | |
Ownership interest | 100% | 100% |
IE CA Development Holdings Ltd. [Member] | ||
List of Subsidiary Companies [Abstract] | ||
Name | IE CA Development Holdings Ltd. | |
Principal place of business / Country of incorporation | Canada | |
Ownership interest | 100% | 100% |
IE CA Development Holdings 2 Ltd. [Member] | ||
List of Subsidiary Companies [Abstract] | ||
Name | IE CA Development Holdings 2 Ltd. | |
Principal place of business / Country of incorporation | Canada | |
Ownership interest | 100% | 100% |
IE CA Development Holdings 3 Ltd. [Member] | ||
List of Subsidiary Companies [Abstract] | ||
Name | IE CA Development Holdings 3 Ltd. | |
Principal place of business / Country of incorporation | Canada | |
Ownership interest | 100% | 100% |
IE CA Development Holdings 4 Ltd. [Member] | ||
List of Subsidiary Companies [Abstract] | ||
Name | IE CA Development Holdings 4 Ltd. | |
Principal place of business / Country of incorporation | Canada | |
Ownership interest | 100% | 100% |
IE CA Development Holdings 5 Ltd. [Member] | ||
List of Subsidiary Companies [Abstract] | ||
Name | IE CA Development Holdings 5 Ltd. | |
Principal place of business / Country of incorporation | Canada | |
Ownership interest | 100% | 100% |
IE US 1, Inc. [Member] | ||
List of Subsidiary Companies [Abstract] | ||
Name | IE US 1, Inc. | |
Principal place of business / Country of incorporation | United States of America | |
Ownership interest | 100% | 100% |
IE CA Development Holdings 7 Ltd. [Member] | ||
List of Subsidiary Companies [Abstract] | ||
Name | IE CA Development Holdings 7 Ltd. | |
Principal place of business / Country of incorporation | Canada | |
Ownership interest | 100% | 0% |
Iris Energy Holdings Pty Ltd. [Member] | ||
List of Subsidiary Companies [Abstract] | ||
Name | Iris Energy Holdings Pty Ltd. | |
Principal place of business / Country of incorporation | Australia | |
Ownership interest | 100% | 0% |
TAS 1 Holdings Ltd [Member] | ||
List of Subsidiary Companies [Abstract] | ||
Name | TAS 1 Holdings Ltd | |
Principal place of business / Country of incorporation | Australia | |
Ownership interest | 100% | 0% |
IE US Development Holdings 1 Inc. [Member] | ||
List of Subsidiary Companies [Abstract] | ||
Name | IE US Development Holdings 1 Inc. | |
Principal place of business / Country of incorporation | United States of America | |
Ownership interest | 100% | 0% |
IE US Holdings Inc. [Member] | ||
List of Subsidiary Companies [Abstract] | ||
Name | IE US Holdings Inc. | |
Principal place of business / Country of incorporation | United States of America | |
Ownership interest | 100% | 0% |
IE US Development Holdings 3 Inc. [Member] | ||
List of Subsidiary Companies [Abstract] | ||
Name | IE US Development Holdings 3 Inc. | |
Principal place of business / Country of incorporation | United States of America | |
Ownership interest | 100% | 0% |
IE US Development Holdings 4 Inc. [Member] | ||
List of Subsidiary Companies [Abstract] | ||
Name | IE US Development Holdings 4 Inc. | |
Principal place of business / Country of incorporation | United States of America | |
Ownership interest | 100% | 0% |
IE US Operations Inc. [Member] | ||
List of Subsidiary Companies [Abstract] | ||
Name | IE US Operations Inc. | |
Principal place of business / Country of incorporation | United States of America | |
Ownership interest | 100% | 0% |
IE US Hardware 1 Inc. [Member] | ||
List of Subsidiary Companies [Abstract] | ||
Name | IE US Hardware 1 Inc. | |
Principal place of business / Country of incorporation | United States of America | |
Ownership interest | 100% | 0% |
IE US Hardware 2 Inc. [Member] | ||
List of Subsidiary Companies [Abstract] | ||
Name | IE US Hardware 2 Inc. | |
Principal place of business / Country of incorporation | United States of America | |
Ownership interest | 100% | 0% |
IE US Hardware 3 Inc. [Member] | ||
List of Subsidiary Companies [Abstract] | ||
Name | IE US Hardware 3 Inc. | |
Principal place of business / Country of incorporation | United States of America | |
Ownership interest | 100% | 0% |
IE US Hardware 4 Inc. [Member] | ||
List of Subsidiary Companies [Abstract] | ||
Name | IE US Hardware 4 Inc. | |
Principal place of business / Country of incorporation | United States of America | |
Ownership interest | 100% | 0% |
Reconciliation of loss after _3
Reconciliation of loss after income tax to net cash from/(used in) operating activities (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Reconciliation of loss after income tax to net cash from/(used in) operating activities [Abstract] | |||
Loss after income tax expense for the year | $ (419,770,000) | $ (60,390,000) | $ (2,142,000) |
Adjustments for [Abstract] | |||
Depreciation | 7,741,000 | 1,252,000 | 757,000 |
Capital raising costs | 4,212,000 | 0 | 0 |
Impairment of assets | 167,000 | 432,000 | 0 |
Net loss/(gain) on disposal of non-current assets | (12,000) | 202,000 | 0 |
Unrealized foreign exchange gains | (8,889,000) | (2,729,000) | 0 |
Loss on embedded derivatives held at fair value through profit or loss | 390,743,000 | 44,692,000 | 0 |
Interest expense on hybrid financial instruments | 26,748,000 | 14,182,000 | 0 |
Amortization of capitalized borrowing costs | 2,508,000 | 1,968,000 | 0 |
Share-based payment expense | 13,896,000 | 805,000 | 179,000 |
Change in operating assets and liabilities [Abstract] | |||
Increase in other receivables | (72,000) | (416,000) | (329,000) |
Increase in deferred tax assets | (9,645,000) | (911,000) | 0 |
Increase in trade and other payables | 6,476,000 | 367,000 | 505,000 |
Increase in provision for income tax | 671,000 | 533,000 | 0 |
Increase in deferred tax liabilities | 6,892,000 | 1,618,000 | 0 |
Increase in employee benefits | 2,026,000 | 66,000 | 43,000 |
Increase in other provisions | 2,469,000 | 0 | 0 |
Decrease in operating deposits | 0 | 90,000 | 0 |
Increase in prepayments and deposits | (4,604,000) | 0 | 0 |
Net cash from/(used in) operating activities | $ 21,557,000 | $ 1,761,000 | $ (987,000) |
Non-cash investing and financ_3
Non-cash investing and financing activities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Non-cash investing and financing activities [Abstract] | |||
Convertible notes issued in lieu of interest/referral fees | $ 0 | $ (463) | $ 0 |
Mining hardware finance additional fee | (1,424) | (2,426) | 0 |
Mining hardware prepayments made directly by third party financier | (37,980) | (1,458) | 0 |
Additions to right-of-use assets and lease liabilities | 298 | 1,051 | 271 |
Shares issued in relation to business combinations | 0 | 0 | 1,930 |
Vendor loan | 0 | 0 | 1,980 |
Non-cash investing and financing activities | $ (39,106) | $ (3,296) | $ 4,181 |
Share-based payments, Employee
Share-based payments, Employee Share Plan (Details) | 12 Months Ended |
Jun. 30, 2022 Tranche | |
Employee Share Plan [Abstract] | |
Number of tranches | 3 |
Maximum [Member] | |
Employee Share Plan [Abstract] | |
Term of limited recourse loan | 9 years 11 months |
Share-based payments, 2021 Exec
Share-based payments, 2021 Executive Director Liquidity and Price Target Options (Details) | 12 Months Ended | |||
Jan. 20, 2021 shares $ / shares | Jan. 20, 2021 shares $ / shares | Jun. 30, 2022 shares $ / shares | Jun. 30, 2021 shares $ / shares | |
Share-based payments [Abstract] | ||||
Number of share options granted (in shares) | 5,126,484 | 2,693,944 | ||
Exercise price (in dollars per share) | $ / shares | $ 71.19 | $ 3.91 | ||
2021 Executive Director Liquidity and Price Target Options [Member] | ||||
Share-based payments [Abstract] | ||||
Number of share options granted (in shares) | 2,000,000 | |||
Exercise price (in dollars per share) | $ / shares | $ 3.86 | |||
Expiration date of share based payment arrangement grants | Dec. 20, 2025 | |||
Number of share options vested (in shares) | 2,000,000 | |||
Options exercised (in shares) | 0 | |||
2021 Executive Director Liquidity and Price Target Options [Member] | Entities Controlled by Daniel Roberts [Member] | ||||
Share-based payments [Abstract] | ||||
Number of share options granted (in shares) | 1,000,000 | 1,000,000 | ||
Exercise price (in dollars per share) | (per share) | $ 3.8647 | $ 5.0005 | ||
2021 Executive Director Liquidity and Price Target Options [Member] | Entities Controlled by William Roberts [Member] | ||||
Share-based payments [Abstract] | ||||
Number of share options granted (in shares) | 1,000,000 | 1,000,000 | ||
Exercise price (in dollars per share) | (per share) | $ 3.8647 | $ 5.0005 | ||
2021 Executive Director Liquidity and Price Target Options [Member] | Tranche One [Member] | ||||
Share-based payments [Abstract] | ||||
Number of trading days | 20 days | |||
Number of share options vested (in shares) | 300,000 | 300,000 | ||
2021 Executive Director Liquidity and Price Target Options [Member] | Tranche One [Member] | Minimum [Member] | ||||
Share-based payments [Abstract] | ||||
Volume weighted average market price (in dollars per share) | (per share) | $ 5.41 | $ 7 | ||
2021 Executive Director Liquidity and Price Target Options [Member] | Tranche Two [Member] | ||||
Share-based payments [Abstract] | ||||
Number of trading days | 20 days | |||
Number of share options vested (in shares) | 300,000 | 300,000 | ||
2021 Executive Director Liquidity and Price Target Options [Member] | Tranche Two [Member] | Minimum [Member] | ||||
Share-based payments [Abstract] | ||||
Volume weighted average market price (in dollars per share) | (per share) | $ 6.96 | $ 9 | ||
2021 Executive Director Liquidity and Price Target Options [Member] | Tranche Three [Member] | ||||
Share-based payments [Abstract] | ||||
Number of trading days | 20 days | |||
Number of share options vested (in shares) | 400,000 | 400,000 | ||
2021 Executive Director Liquidity and Price Target Options [Member] | Tranche Three [Member] | Minimum [Member] | ||||
Share-based payments [Abstract] | ||||
Volume weighted average market price (in dollars per share) | (per share) | $ 8.50 | $ 11 |
Share-based payments, 2021 Ex_2
Share-based payments, 2021 Executive Director Long-term Target Options (Details) | 12 Months Ended | ||
Sep. 14, 2021 shares $ / shares | Jun. 30, 2022 shares Tranche $ / shares | Jun. 30, 2021 shares $ / shares | |
Share-based payments [Abstract] | |||
Number of share options granted (in shares) | shares | 5,126,484 | 2,693,944 | |
Exercise price (in dollars per share) | $ / shares | $ 71.19 | $ 3.91 | |
Number of tranches | Tranche | 3 | ||
2021 Executive Director Long-term Target Options [Member] | |||
Share-based payments [Abstract] | |||
Number of share options granted (in shares) | shares | 4,800,000 | ||
Exercise price (in dollars per share) | $ / shares | $ 75 | ||
Contractual exercise period | 12 years | ||
Number of tranches | Tranche | 4 | ||
2021 Executive Director Long-term Target Options [Member] | Entities Controlled by Daniel Roberts [Member] | |||
Share-based payments [Abstract] | |||
Number of share options granted (in shares) | shares | 2,400,000 | ||
Exercise price (in dollars per share) | $ / shares | $ 75 | ||
2021 Executive Director Long-term Target Options [Member] | Entities Controlled by William Roberts [Member] | |||
Share-based payments [Abstract] | |||
Number of share options granted (in shares) | shares | 2,400,000 | ||
Exercise price (in dollars per share) | $ / shares | $ 75 | ||
2021 Executive Director Long-term Target Options [Member] | Tranche One [Member] | |||
Share-based payments [Abstract] | |||
Number of trading days | 20 days | ||
Number of share options expected to vest (in shares) | shares | 600,000 | ||
2021 Executive Director Long-term Target Options [Member] | Tranche One [Member] | Minimum [Member] | |||
Share-based payments [Abstract] | |||
Volume weighted average market price (in dollars per share) | $ / shares | $ 370 | ||
2021 Executive Director Long-term Target Options [Member] | Tranche Two [Member] | |||
Share-based payments [Abstract] | |||
Number of trading days | 20 days | ||
Number of share options expected to vest (in shares) | shares | 600,000 | ||
2021 Executive Director Long-term Target Options [Member] | Tranche Two [Member] | Minimum [Member] | |||
Share-based payments [Abstract] | |||
Volume weighted average market price (in dollars per share) | $ / shares | $ 650 | ||
2021 Executive Director Long-term Target Options [Member] | Tranche Three [Member] | |||
Share-based payments [Abstract] | |||
Number of trading days | 20 days | ||
Number of share options expected to vest (in shares) | shares | 600,000 | ||
2021 Executive Director Long-term Target Options [Member] | Tranche Three [Member] | Minimum [Member] | |||
Share-based payments [Abstract] | |||
Volume weighted average market price (in dollars per share) | $ / shares | $ 925 | ||
2021 Executive Director Long-term Target Options [Member] | Tranche Four [Member] | |||
Share-based payments [Abstract] | |||
Number of trading days | 20 days | ||
Number of share options expected to vest (in shares) | shares | 600,000 | ||
2021 Executive Director Long-term Target Options [Member] | Tranche Four [Member] | Minimum [Member] | |||
Share-based payments [Abstract] | |||
Volume weighted average market price (in dollars per share) | $ / shares | $ 1,850 |
Share-based payments, Reconcili
Share-based payments, Reconciliation of Outstanding Share Options (Details) | 12 Months Ended | ||
Jun. 30, 2022 shares $ / shares | Jun. 30, 2021 shares $ / shares | Jun. 30, 2020 shares $ / shares | |
Number of Options [Abstract] | |||
Outstanding at beginning of year (in shares) | shares | 4,143,415 | 1,492,317 | |
Granted during the year (in shares) | shares | 5,126,484 | 2,693,944 | |
Forfeited during the year (in shares) | shares | (259,352) | (42,846) | |
Outstanding at end of year (in shares) | shares | 9,010,547 | 4,143,415 | 1,492,317 |
Exercisable at end of year (in shares) | shares | 3,351,327 | 302,000 | |
Weighted Average Exercise Price [Abstract] | |||
Outstanding at beginning of year (in dollars per share) | $ / shares | $ 3.03 | $ 1.53 | |
Granted during the year (in dollars per share) | $ / shares | 71.19 | 3.91 | |
Forfeited during the year (in dollars per share) | $ / shares | 8.01 | 4.57 | |
Outstanding at end of year (in dollars per share) | $ / shares | 41.67 | 3.03 | $ 1.53 |
Exercisable at end of year (in dollars per share) | $ / shares | $ 3.04 | $ 2.01 | |
Weighted average remaining contractual life | 8 years 8 months 8 days | 6 years 9 months 18 days | 9 years 7 months 6 days |
Share-based payments, Measuring
Share-based payments, Measuring Fair Value of Arrangements Granted (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 USD ($) shares $ / shares | Jun. 30, 2021 USD ($) shares $ / shares | Jun. 30, 2020 USD ($) | |
Fair Value of Arrangements Granted [Abstract] | |||
Weighted average expected life | 8 years 8 months 8 days | 6 years 9 months 18 days | 9 years 7 months 6 days |
Exercise price (in dollars per share) | $ 71.19 | $ 3.91 | |
Number of share options granted (in shares) | shares | 5,126,484 | 2,693,944 | |
Share-based payment expense | $ | $ 13,896 | $ 805 | $ 179 |
Employee Share Plan Grant Date 04 April 2020 [Member] | |||
Fair Value of Arrangements Granted [Abstract] | |||
Dividend yield | 0% | ||
Expected volatility | 46% | ||
Risk-free interest rate | 0.15% | ||
Weighted average expected life | 2 years 3 months 10 days | ||
Grant date share price (in dollars per share) | $ 1.53 | ||
Exercise price (in dollars per share) | 1.53 | ||
Weighted average of fair value (in dollars per share) | $ 0.39 | ||
Number of share options granted (in shares) | shares | 1,492,317 | ||
Employee Share Plan Grant Date 31 July 2020 [Member] | |||
Fair Value of Arrangements Granted [Abstract] | |||
Dividend yield | 0% | ||
Expected volatility | 60% | ||
Risk-free interest rate | 0.15% | ||
Weighted average expected life | 2 years | ||
Grant date share price (in dollars per share) | $ 2.37 | ||
Exercise price (in dollars per share) | 2.12 | ||
Weighted average of fair value (in dollars per share) | $ 0.83 | ||
Number of share options granted (in shares) | shares | 453,516 | ||
Employee Share Plan Grant Date 10 May 2021 [Member] | |||
Fair Value of Arrangements Granted [Abstract] | |||
Dividend yield | 0% | ||
Expected volatility | 90% | ||
Risk-free interest rate | 0.15% | ||
Weighted average expected life | 2 years 8 months 15 days | ||
Grant date share price (in dollars per share) | $ 7.68 | ||
Exercise price (in dollars per share) | 7.64 | ||
Weighted average of fair value (in dollars per share) | $ 4.46 | ||
Number of share options granted (in shares) | shares | 240,428 | ||
Employee Option Plan Grant Date 28 July 2021 [Member] | |||
Fair Value of Arrangements Granted [Abstract] | |||
Dividend yield | 0% | ||
Expected volatility | 90% | ||
Risk-free interest rate | 0.15% | ||
Weighted average expected life | 7 years | ||
Grant date share price (in dollars per share) | $ 34.73 | ||
Exercise price (in dollars per share) | 8.76 | ||
Weighted average of fair value (in dollars per share) | $ 31.05 | ||
Number of share options granted (in shares) | shares | 89,541 | ||
Employee Option Plan Grant Date 20 October 2021 [Member] | |||
Fair Value of Arrangements Granted [Abstract] | |||
Dividend yield | 0% | ||
Expected volatility | 90% | ||
Risk-free interest rate | 0.15% | ||
Weighted average expected life | 7 years | ||
Grant date share price (in dollars per share) | $ 34.80 | ||
Exercise price (in dollars per share) | 36.45 | ||
Weighted average of fair value (in dollars per share) | $ 26.50 | ||
Number of share options granted (in shares) | shares | 53,223 | ||
Employee Option Plan Grant Date 17 June 2022 [Member] | |||
Fair Value of Arrangements Granted [Abstract] | |||
Dividend yield | 0% | ||
Expected volatility | 122% | ||
Risk-free interest rate | 0.85% | ||
Weighted average expected life | 7 years | ||
Grant date share price (in dollars per share) | $ 3.74 | ||
Exercise price (in dollars per share) | 36.45 | ||
Weighted average of fair value (in dollars per share) | $ 2.71 | ||
Number of share options granted (in shares) | shares | 7,750 | ||
Executive Director Options 20 January 2021 [Member] | |||
Fair Value of Arrangements Granted [Abstract] | |||
Dividend yield | 0% | ||
Expected volatility | 60% | ||
Risk-free interest rate | 0.15% | ||
Weighted average expected life | 4 years 10 months 24 days | ||
Grant date share price (in dollars per share) | $ 2.71 | ||
Exercise price (in dollars per share) | 3.86 | ||
Weighted average of fair value (in dollars per share) | $ 0.81 | ||
Number of share options granted (in shares) | shares | 2,000,000 | ||
Long-term Target Options 14 September 2021 [Member] | |||
Fair Value of Arrangements Granted [Abstract] | |||
Dividend yield | 0% | ||
Expected volatility | 90% | ||
Risk-free interest rate | 1.28% | ||
Weighted average expected life | 9 years | ||
Grant date share price (in dollars per share) | $ 34.17 | ||
Exercise price (in dollars per share) | 75 | ||
Weighted average of fair value (in dollars per share) | $ 23.87 | ||
Number of share options granted (in shares) | shares | 4,800,000 | ||
NED Option Plan 28 July 2021 [Member] | |||
Fair Value of Arrangements Granted [Abstract] | |||
Dividend yield | 0% | ||
Expected volatility | 90% | ||
Risk-free interest rate | 0.15% | ||
Weighted average expected life | 6 years 6 months 29 days | ||
Grant date share price (in dollars per share) | $ 34.73 | ||
Exercise price (in dollars per share) | 8.76 | ||
Weighted average of fair value (in dollars per share) | $ 30.80 | ||
Number of share options granted (in shares) | shares | 161,707 | ||
NED Option Plan 21 October 2021 [Member] | |||
Fair Value of Arrangements Granted [Abstract] | |||
Dividend yield | 0% | ||
Expected volatility | 90% | ||
Risk-free interest rate | 0.15% | ||
Weighted average expected life | 7 years | ||
Grant date share price (in dollars per share) | $ 34.80 | ||
Exercise price (in dollars per share) | 36.45 | ||
Weighted average of fair value (in dollars per share) | $ 26.50 | ||
Number of share options granted (in shares) | shares | 14,266 |
Related party transactions (Det
Related party transactions (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
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 |
Key management personnel disc_3
Key management personnel disclosures, Directors and Key Management (Details) | 12 Months Ended | |
Aug. 18, 2021 Vote $ / shares shares | Jun. 30, 2022 | |
Class B Shares [Member] | ||
Significant transactions with key management personnel [Abstract] | ||
Number of holder votes | Vote | 15 | |
Number of years company's ordinary shares are first listed on a recognized stock exchange | 12 years | |
Entities Controlled by Daniel Roberts [Member] | Class B Shares [Member] | ||
Significant transactions with key management personnel [Abstract] | ||
Shares issued (in shares) | shares | 1 | |
Share price (in dollars per share) | $ / shares | $ 1 | |
Entities Controlled by William Roberts [Member] | Class B Shares [Member] | ||
Significant transactions with key management personnel [Abstract] | ||
Shares issued (in shares) | shares | 1 | |
Share price (in dollars per share) | $ / shares | $ 1 | |
David Bartholomew [Member] | Directors [Member] | ||
Directors and key management personnel [Abstract] | ||
Date of Commencement | Sep. 24, 2021 | |
Christopher Guzowski [Member] | Directors [Member] | ||
Directors and key management personnel [Abstract] | ||
Date of Commencement | Dec. 19, 2019 | |
Michael Alfred [Member] | Directors [Member] | ||
Directors and key management personnel [Abstract] | ||
Date of Commencement | Oct. 21, 2021 | |
Daniel Roberts [Member] | Directors [Member] | ||
Directors and key management personnel [Abstract] | ||
Date of Commencement | Nov. 06, 2018 | |
William Roberts [Member] | Directors [Member] | ||
Directors and key management personnel [Abstract] | ||
Date of Commencement | Nov. 06, 2018 | |
Paul Gordon [Member] | Directors [Member] | ||
Directors and key management personnel [Abstract] | ||
Date of Commencement | Dec. 19, 2019 | |
Date ceased to be KMP | Oct. 24, 2021 | |
Lindsay Ward [Member] | Key Management Personnel [Member] | ||
Directors and key management personnel [Abstract] | ||
Date of Commencement | Oct. 18, 2021 | |
David Shaw [Member] | Key Management Personnel [Member] | ||
Directors and key management personnel [Abstract] | ||
Date of Commencement | Oct. 22, 2021 | |
Belinda Nucifora [Member] | Key Management Personnel [Member] | ||
Directors and key management personnel [Abstract] | ||
Date of Commencement | May 16, 2022 | |
Jason Conroy [Member] | Key Management Personnel [Member] | ||
Directors and key management personnel [Abstract] | ||
Date of Commencement | May 10, 2021 | |
Date ceased to be KMP | Sep. 23, 2021 |
Key management personnel disc_4
Key management personnel disclosures, Compensation (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Key Management Personnel Disclosures [Abstract] | ||
Short-term employee benefits | $ 1,610,088 | $ 368,493 |
Post-employment benefits | 81,550 | 32,328 |
Share-based payments | 13,314,679 | 174,603 |
Total compensation | $ 15,006,317 | $ 575,424 |
Key management personnel disc_5
Key management personnel disclosures, Directors and Other Members (Details) | 12 Months Ended | ||
Jun. 30, 2022 shares $ / shares | Jun. 30, 2021 USD ($) shares $ / shares | Jun. 30, 2021 AUD ($) shares | |
Number of options [Abstract] | |||
Outstanding at beginning of year (in shares) | shares | 4,143,415 | 1,492,317 | 1,492,317 |
Granted during the year (in shares) | shares | 5,126,484 | 2,693,944 | 2,693,944 |
Forfeited during the year (in shares) | shares | (259,352) | (42,846) | (42,846) |
Outstanding at end of year (in shares) | shares | 9,010,547 | 4,143,415 | 4,143,415 |
Exercisable at end of year (in shares) | shares | 3,351,327 | 302,000 | 302,000 |
Weighted Average Exercise Price [Abstract] | |||
Outstanding at beginning of year (in dollars per share) | $ / shares | $ 3.03 | $ 1.53 | |
Granted during the year (in dollars per share) | $ / shares | 71.19 | 3.91 | |
Forfeited during the year (in dollars per share) | $ / shares | 8.01 | 4.57 | |
Outstanding at end of year (in dollars per share) | $ / shares | 41.67 | 3.03 | |
Exercisable at end of year (in dollars per share) | $ / shares | $ 3.04 | $ 2.01 | |
2021 Executive Director Liquidity and Price Target Options [Member] | |||
Number of options [Abstract] | |||
Granted during the year (in shares) | shares | 2,000,000 | ||
Weighted Average Exercise Price [Abstract] | |||
Granted during the year (in dollars per share) | $ / shares | $ 3.86 | ||
Other key management personnel transactions [Abstract] | |||
Proceeds from each executive director for options granted | $ 3,868 | $ 5,005 | |
Directors and Other Members of KMP [Member] | |||
Number of options [Abstract] | |||
Outstanding at beginning of year (in shares) | shares | 2,136,171 | 0 | 0 |
Granted during the year (in shares) | shares | 5,014,834 | 2,136,171 | 2,136,171 |
Forfeited during the year (in shares) | shares | (177,489) | 0 | 0 |
Outstanding at end of year (in shares) | shares | 6,973,516 | 2,136,171 | 2,136,171 |
Exercisable at end of year (in shares) | shares | 2,035,278 | 0 | 0 |
Weighted Average Exercise Price [Abstract] | |||
Outstanding at beginning of year (in dollars per share) | $ / shares | $ 4.10 | $ 0 | |
Granted during the year (in dollars per share) | $ / shares | 72.46 | 4.10 | |
Forfeited during the year (in dollars per share) | $ / shares | 7.90 | 0 | |
Outstanding at end of year (in dollars per share) | $ / shares | 53.16 | 4.10 | |
Exercisable at end of year (in dollars per share) | $ / shares | $ 3.95 | $ 0 |
Events after the reporting pe_2
Events after the reporting period (Details) | 12 Months Ended | |||
Aug. 01, 2022 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2020 USD ($) | |
Advanced Delivery of Mining Hardware [Abstract] | ||||
Mining hardware prepayments | $ 158,184,000 | $ 75,129,000 | $ 0 | |
Operating capacity hash rate | 6 | |||
Cash on hand utilized for mining assets | $ 210,593,000 | $ 73,815,000 | $ 0 | |
Remaining mining hardware prepayments | $ 83,340,000 | |||
First Two Purchase Agreement with Bitmain [Member] | ||||
Advanced Delivery of Mining Hardware [Abstract] | ||||
Operating capacity hash rate | 4.3 | |||
Third Purchase Agreement with Bitmain [Member] | ||||
Advanced Delivery of Mining Hardware [Abstract] | ||||
Operating capacity hash rate | 10 | |||
Subsequent Events [Member] | Third Purchase Agreement with Bitmain [Member] | ||||
Advanced Delivery of Mining Hardware [Abstract] | ||||
Operating capacity hash rate | 6 | |||
Additional operating capacity hash rate | 1.7 | |||
Mining Hardware [Member] | ||||
Advanced Delivery of Mining Hardware [Abstract] | ||||
Mining hardware prepayments | $ 158,184,000 | |||
Operating capacity hash rate | 4.3 | |||
Prepayments balance relates to operating capacity | $ 30,127,000 | |||
Amount of prepayments utilized | 46,006,000 | |||
Cash amount of prepayments | 46,670,000 | |||
Cash on hand utilized for mining assets | 5,900,000 | |||
Remaining mining hardware prepayments | $ 83,340,000 | |||
Mining Hardware [Member] | First Two Purchase Agreement with Bitmain [Member] | ||||
Advanced Delivery of Mining Hardware [Abstract] | ||||
Operating capacity hash rate | 4.3 | |||
Mining Hardware [Member] | Third Purchase Agreement with Bitmain [Member] | ||||
Advanced Delivery of Mining Hardware [Abstract] | ||||
Operating capacity hash rate | 10 | |||
Mining Hardware [Member] | Subsequent Events [Member] | ||||
Advanced Delivery of Mining Hardware [Abstract] | ||||
Operating capacity hash rate | 6 | |||
Cash on hand utilized for mining assets | $ 5,869,000 | |||
Remaining mining hardware prepayments | $ 82,051,000 | |||
Mining Hardware [Member] | Subsequent Events [Member] | Third Purchase Agreement with Bitmain [Member] | ||||
Advanced Delivery of Mining Hardware [Abstract] | ||||
Operating capacity hash rate | 6 | |||
Additional operating capacity hash rate | 1.7 |