Iris Energy to cut mining hardware after defaulting on $108m loan

The Australian mining company had to disconnect equipment that was producing "insufficient cash flow" to meet its "debt financing obligations".
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Australian bitcoin mining firm Iris Energy is the latest to suffer from the pressure of the crypto bear market, losing significant mining power after defaulting on a loan.

A filing by the company with the U.S. Securities and Exchange Commission on November 21 revealed that it had unplugged its equipment used as collateral in a $107.8 million loan as of November 18.< /p>
The units are “generating insufficient cash flow to service their respective debt financing obligations,” the company noted. The operation generates about $2 million in Bitcoin gross profit per month, but cannot cover the $7 million in debt.

Iris has now reduced her capacity by approximately 3.6 EH/s (exahashes per second) of mining power. He said capacity remains at around 2.4 PE/s, which includes 1.1 PE/s of hardware in operation and 1.4 PE/s of platforms in transit or awaiting deployment. p>
The company said "its data center capacity and development pipeline are unaffected by recent events," and it will continue to explore opportunities to utilize its capacity. Iris is also considering the possibility of "using $75 million in prepayments already paid to Bitmain for an additional 7.5 PE/s of contracted miners for additional self-mining".

Earlier this month, the company received a $103 million formal notice. Iris Energy primarily operates Canadian BTC mining hubs that run on fully renewable energy. In early August, the company doubled its hash rate after boosting its facilities in Canada.

Iris Energy (IREN) stock fell 18% on the day to trade at $1.65 after hours. It hit an all-time low on November 21, down 94% from its all-time high of $24.8 when first traded in November 2021.

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Crypto Nov 22, 2022 0 65 Add to Reading List

Iris Energy to cut mining hardware after defaulting on $108m loan

The Australian mining company had to disconnect equipment that was producing "insufficient cash flow" to meet its "debt financing obligations".

New

Australian bitcoin mining firm Iris Energy is the latest to suffer from the pressure of the crypto bear market, losing significant mining power after defaulting on a loan.

A filing by the company with the U.S. Securities and Exchange Commission on November 21 revealed that it had unplugged its equipment used as collateral in a $107.8 million loan as of November 18.< /p>

The units are “generating insufficient cash flow to service their respective debt financing obligations,” the company noted. The operation generates about $2 million in Bitcoin gross profit per month, but cannot cover the $7 million in debt.

Iris has now reduced her capacity by approximately 3.6 EH/s (exahashes per second) of mining power. He said capacity remains at around 2.4 PE/s, which includes 1.1 PE/s of hardware in operation and 1.4 PE/s of platforms in transit or awaiting deployment. p>

The company said "its data center capacity and development pipeline are unaffected by recent events," and it will continue to explore opportunities to utilize its capacity. Iris is also considering the possibility of "using $75 million in prepayments already paid to Bitmain for an additional 7.5 PE/s of contracted miners for additional self-mining".

Earlier this month, the company received a $103 million formal notice. Iris Energy primarily operates Canadian BTC mining hubs that run on fully renewable energy. In early August, the company doubled its hash rate after boosting its facilities in Canada.

Iris Energy (IREN) stock fell 18% on the day to trade at $1.65 after hours. It hit an all-time low on November 21, down 94% from its all-time high of $24.8 when first traded in November 2021.

Related: