A New Bitcoin Miner Adrift: Iris Energy Owes $104 Million

But where is the end of the tunnel? – This endless bear market on the course of Bitcoin (BTC) and cryptos affects all market participants. The companies of mining are at first among these difficulties. The group’s crypto-miners Iris Energy thus find themselves in a position quite annoyingwith creditors ringing insistently at his door.

Iris Energy’s creditors are on their toes

Between the depressed prices of Bitcoinand the threats of energy restrictionsthem minors Proof of Work (PoW) based cryptocurrencies are going through a tough time. The mining company Iris Energy Limitedbased in Australia, is unfortunately no exception.

In a recent document filed with the Securities and Exchange Commission (SEC), we thus learn that Iris Energy received a formal notice from the ASIC manufacturer Bitmain Technologies. The manufacturer of Bitcoin mining devices would be worried about health of his debtor.

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A debt pawning part of the crypto-miner’s equipment

Iris Energy thus found itself technically in payment default for three lines of credit granted for the purchase of mining equipment. These financing loans are $1 million, $32 million and $71 million. Totaling $104 million.

These loans are guaranteed by the device pawning of crypto-mining. For computing power (hashrate) of 0.2 EH/s (exahashes per second), 1.6 EH/s and 2.0 EH/s respectively.

“Equipment financing agreements (…) have been a recent concern for us. We remain committed to exploring a means by which we may allow the lender to recoup their capital investment. However, we are also aware of the current market. As well as the fact that these arrangements have been deliberately structured to minimize any potential impact on the group as a whole. Same during a prolonged market downturn. »

Daniel Roberts, co-founder and co-CEO of Iris Energy

To make matters worse, crypto-miners are carrying out a fierce fight between them. Indeed, in addition to the sluggishness of the market and the difficulties of energy supplies, the mining difficulty skyrockets on the bitcoin network.

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