2 Lenders Claim Bitcoin Miner Iris Energy Defaulted on Equipment Loans Worth $103 Million – Mining Bitcoin News

Another bitcoin mining company is dealing with financial issues as Iris Energy’s Form 6-K filing with the U.S. Securities and Exchange Commission (SEC) shows the company could face default on two loans. Iris Energy’s Form 6-K filing explains to the SEC that the firm “received a notice from its lender alleging the occurrence of an event of default and acceleration under the respective limited recourse equipment financing facilities.”

Iris Energy, a Bitcoin Mining Company, Fails to Pay 2 Loans

On Nov. 7, 2022, the bitcoin mining firm Iris Energy updated investors concerning October’s operations and the company noted it currently operates a hashrate 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 energization by the end Q4 2022.” Also, the firm’s Childress facility in Texas is still in the construction and energization phase and operations continue on that end.

2 Lenders Claim Bitcoin Miner Iris Energy Defaulted on Equipment Loans Worth $103 Million

A Form 6-K SEC filing filed in November shows that two lenders claim the company has defaulted upon $103 million of equipment loans. The loans are being held by two special-purpose vehicles (SPV) and the lenders have sent a “purported acceleration notice” for the alleged defaults. Iris Energy said that a large fraction of its exahash is unaffected by the SPV’s purported acceleration notice. Iris Energy’s SEC filing states:

2.4 EH/s of miners and all of the group’s data center capacity and development pipeline are unaffected by the limited recourse equipment financing arrangements or purported acceleration notice.

The bitcoin miner’s filing with the U.S. regulator follows other mining companies dealing with financial issues. Bitcoin.com News published a report that Compute North filed for bankruptcy protection. Additionally, Core Scientific told the U.S. SEC that it was having financial difficulties as Core Scientific’s “operating performance and liquidity have been severely impacted by the prolonged decrease in the price of bitcoin.”

Concerning the Iris Energy file, the one SPV states it owes $71million, while the other claim Iris Energy owes them $32million. Iris Energy said that it has available data center capacity and it “continues to explore opportunities to utilize this capacity to either host third-party miners or to self-mine utilizing additional miners that the company has available or elects to purchase.”

Iris Energy shares IRENThe U.S. Dollar has fallen 19.60% in the past five days. Many bitcoin mining companies also saw shares drop from 80% to 90% over the last 12 months. Year-to-date, IREN has fallen 81.68%.

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Bitcoin miner Iris Energy. Bitcoin mining.

Iris Energy SEC filing shows that two companies have filed claims of default for equipment loans. What are your thoughts? Please comment below to let us know your thoughts on this topic.

Jamie Redman

Jamie Redman is the News Lead for Bitcoin.com News. He also lives in Florida and works as a journalist covering financial technology. Redman is an active participant in the cryptocurrency community from 2011. Redman is passionate about Bitcoin and open-source codes. Redman is a prolific writer for Bitcoin.com News, with over 6,000 articles on disruptive protocols.

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