Crypto miner Iris Energy’s Nov. 21 SEC filing reveals a $108 million loan default. The BTC miner is shutting down its mining equipment as a collateral for the $107.8M loan, as of Nov. 18. Iris Energy’s mining capacity is now decreased by 3.6 EH/s of mining power.
Iris Energy, has defaulted on its $108 million debt loan after its mining hardware equipment couldn’t profit. As a result, the Australian Bitcoin miner is going to cut down on its mining hardware.
Iris Energy’s recent U.S. Securities and Exchange Commission (SEC) filings indicate that the firm has turned-off its mining hardware. The crypto mining firm has done so to make available for a $107.8 million loan’s collateral.
The miner, in its said U.S. SEC filing, states,
The Non-Recourse SPVs have received default and acceleration notices from the lender in respect of the facilities, including a demand that each facility be immediately repaid in full.
Reports reveal that Iris’ mining units are underperforming, thereby compromising its cash flow, vis-à-vis their respective debt financing. These mining units include its wholly-owned special purpose vehicles (SPVs) approaching a default owing to underperforming miners.
Iris Energy’s $2 million gross monthly BTC mining profit falls short in covering the $7 million debt financing repayment.
The mining capacity of Iris Energy is now down by 3.6 EH/s (or exahashes per second) of mining power. Iris’ current mining capacity is 2.4 EH/s (1.1 EH/s is for operational hardware and 1.4 EH/s is for rigs pending deployment). The 3.6 EH/s miners of Iris Energy are not operational.
Bitcoin miners in the current times are facing the bear market brunt in the form of soaring energy and hash rates, amid falling Bitcoin (BTC) prices. Charles Edwards, founder, Capriole Fund, tweets:
It's a Bitcoin miner bloodbath.
— Charles Edwards (@caprioleio) November 21, 2022
Most aggressive miner selling in almost 7 years now.
Up 400% in just 3 weeks!
If price doesn't go up soon, we are going to see a lot of Bitcoin miners out of business. pic.twitter.com/4ePh0TIPmZ
But Iris Energy believes its event of default would not affect its data center and development roadmap. The mining firm looks forward to exploring its capacity to its full potential in the future.
