Two Lenders Claim Bitcoin Miner Iris Energy Defaulted on $103 Million Equipment Loan – Mining Bitcoin News

Iris Energy’s Form 6-K filed with the U.S. Securities and Exchange Commission (SEC) shows the company may face default on two loans, prompting another bitcoin mining firm to close its finances. We are dealing with the issue. Iris Energy’s Form 6-K filing tells the SEC that the company “has received notices from lenders alleging default and acceleration events have occurred under their respective limited recourse equipment financing facilities.” I’m explaining.

Bitcoin miner Iris Energy faces default on two loans

Bitcoin mining company Iris Energy on November 7, 2022 Has been updated Investors have been concerned about the business in October, saying the company is currently operating a hash rate of around 3.9 exahash per second (EH/s). The bitcoin mining company also said its “Mackenzie Expansion” in British Columbia, Canada, from 50 megawatts (MW) to 80MW, is “on track for energyization by the end of Q4 2022.” I was. Also, the company’s Childress facility in Texas is still in the construction and energization stages and is therefore still in operation.

Two Lenders Claim Bitcoin Miner Iris Energy Defaulted on Equipment Loan Worth $103M

however, Form 6-K SEC Filing Two lenders registered in November indicate that the company has defaulted on a $103 million equipment loan. The loan he is held by two special purpose vehicles (SPVs), and the lender has sent a “scheduled accelerated notice” of alleged default. Iris Energy said the majority of its Exahash has not been affected by SPV’s purported acceleration notice. Iris Energy’s SEC filing states:

2.4 Miner’s EH/s and all of the Group’s data center capacity and development pipeline are not subject to any financing arrangements or intended acceleration notices for Limited Resource Equipment.

The Bitcoin miner’s filing with U.S. regulators follows other mining companies in dealing with financial issues. For example, Bitcoin.com News at the end of September report Regarding Compute North’s filing for bankruptcy protection.In addition, core scientific Said The U.S. Securities and Exchange Commission (SEC) has said Core Scientific is in financial trouble, citing a “long-term decline in the Bitcoin price that has severely impacted its financial performance and liquidity.” Stated.

As far as Iris Energy’s filing goes, one SPV said it owed $71 million, while another claimed Iris Energy owed $32 million. Iris Energy has data center capacity available and “uses this capacity to either host third-party miners or self-serve using additional miners that the company makes available or chooses to purchase. We continue to look for mining opportunities.”

Iris Energy Stock (Nasdaq: Airen) has fallen 19.60% against the US dollar over the last 5 days. Shares of a myriad of bitcoin mining companies have also fallen 80% to 90% over the past 12 months, with IREN down 81.68% against the dollar year-to-date.

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What are your thoughts on Iris Energy’s SEC filings showing that the two companies are alleging default on equipment loans? Let us know what you think about this in the comments section below.

Jamie Redman

Jamie Redman is a news lead for Bitcoin.com News and a financial technology journalist based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written over 6,000 articles for Bitcoin.com News about disruptive protocols currently emerging.




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