Bitcoin mining firm Iris Energy may fail to repay loans

There have been some unfortunate cases in the Bitcoin and cryptocurrency ecosystem. The main reason for these adverse events comes down to the current bearish trend in the cryptocurrency market. Despite the optimistic predictions of experts, investors are still skeptical about future investments.

Some cryptocurrency companies are looking for ways to retain staff and customers. Other companies are trying not to run out of money by the end of 2022. One example of such a company is Bitcoin miner Iris Energy.

Iris Energy is a Bitcoin mining company based on data center infrastructure. It aims to enhance operations by accessing underutilized or abundant renewable energy.

Its main purpose is to support the community and the wider Bitcoin network and decarbonize the energy market.

Iris Energy faces crisis due to cryptocurrency crash

Tuesday is Iris Energy clearly Transactions with NYDIG regarding funding arrangements. NYDIG is a Bitcoin brokerage institution that funds ASICs (Bitcoin Mining Machines).

The Bitcoin mining company has mentioned some issues with some of its mining vehicles.Some SPVs – Special Purpose Vehicles have said they are not operating up to par in terms of cash flow. That is why it is very difficult to repay debts to lenders.

Iris said it still owes $104 million in principal obligations to be paid from three non-resource SPVs it finances. In addition, non-resource SPVs are expected to pay $7 million in interest each month. This figure seems relatively high considering she made a profit of $2 million over the same period.

Additionally, SPV miners are expected to receive between $65 million and $70 million, which is far below the cost. This situation is not very favorable for BTC mining companies. As such, his SVP of the second and his third said he would not make the principal payment scheduled for November 8th. This decision may lead to further crises, but the company is ready to tackle it.

Iris Energy faces crisis due to cryptocurrency crash

Tuesday is Iris Energy clearly Transactions with NYDIG regarding funding arrangements. NYDIG is his BTC brokerage institution that funds ASIC (Bitcoin mining machines).

Bitcoin price trades sideways l BTCUSDT on Tradingview.com

The BTC mining company has mentioned some issues with some mining vehicles. Some SPVs – Special Purpose Vehicles say they are not operating up to standards in terms of cash flow. So it is quite difficult to repay the debt to the lender.

Iris said it still owes $104 million in principal obligations to be paid from three non-resource SPVs it finances. In addition, non-resource SPVs are expected to pay $7 million in interest each month. This figure seems relatively high considering she made a profit of $2 million over the same period.

Additionally, SPV miners are expected to receive between $65 million and $70 million, which is far below the cost. This situation is not very favorable for BTC mining companies. As such, his SVP of the second and his third said he would not make the principal payment scheduled for November 8th. This decision may lead to further crises, but the company is ready to tackle it.

Bitcoin mining firm Iris Energy may fail to repay loans

The company’s cumulative hash power of 3.6 EH/s tends to go offline. However, this only happens when the event is defaulted. This hashpower is equal to the total hashrate of the BTC network, which is approximately 1.5%.

Meanwhile, Iris Energy is not the only cryptocurrency company facing debt repayment challenges due to bankruptcy. In October, Core Scientific shared a post stating that default is possible due to the inability to repay certain debts.

According to the company, there was only about 24 BTC and $26 million in cash left. This decrease is significant given that as of June, it held up to 7000 BTC.

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