Bitcoin miner Iris Energy faces $103 million default claim from creditors
The company is facing a cash crisis due to difficult market conditions.
New
According to a new filing with the United States Securities and Exchange Commission on Monday, Bitcoin (BTC) miner Iris Energy says it has received a notice of default from mining rig maker Bitmain Technologies.
The notice alleged that Iris Energy had failed to "engage in good faith restructuring discussions" for certain principal payments due on November 8. " and would constitute a defect if not remedied within 10 days.
Located in Australia, Iris Energy is known for primarily operating Canadian bitcoin mining hubs that make full use of renewable energy. In October, the company had an average mining hash rate of 3.9 EH/s, which is about 1.5% of the Bitcoin network's mining capacity.
As reported by Iris Energy, the three disputed credit facilities are $1 million, $32 million and $71 million equipment finance loans secured by 0.2 exahash per second (EH/s), 1.6 EH/s and 2.0 EH/s Bitcoin miners. The company says 2.4 PE/s of miners and the entire capacity of its data center and development pipeline are unaffected by the advisory.
"The lender of each non-recourse SPV has no recourse and no cross-guarantee with respect to the assets of the Company or any of its other subsidiaries under the terms of the Facilities."
It appears that a combination of high electricity costs, lower Bitcoin prices, and growing network difficulties have led the company through some tough times. Although it has $53 million in cash and generates more than $8.7 million in revenue each month, the company
The company is facing a cash crisis due to difficult market conditions.
New
According to a new filing with the United States Securities and Exchange Commission on Monday, Bitcoin (BTC) miner Iris Energy says it has received a notice of default from mining rig maker Bitmain Technologies.
The notice alleged that Iris Energy had failed to "engage in good faith restructuring discussions" for certain principal payments due on November 8. " and would constitute a defect if not remedied within 10 days.
Located in Australia, Iris Energy is known for primarily operating Canadian bitcoin mining hubs that make full use of renewable energy. In October, the company had an average mining hash rate of 3.9 EH/s, which is about 1.5% of the Bitcoin network's mining capacity.
As reported by Iris Energy, the three disputed credit facilities are $1 million, $32 million and $71 million equipment finance loans secured by 0.2 exahash per second (EH/s), 1.6 EH/s and 2.0 EH/s Bitcoin miners. The company says 2.4 PE/s of miners and the entire capacity of its data center and development pipeline are unaffected by the advisory.
"The lender of each non-recourse SPV has no recourse and no cross-guarantee with respect to the assets of the Company or any of its other subsidiaries under the terms of the Facilities."
It appears that a combination of high electricity costs, lower Bitcoin prices, and growing network difficulties have led the company through some tough times. Although it has $53 million in cash and generates more than $8.7 million in revenue each month, the company
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