2 Lenders Claim Bitcoin Miner Iris Energy Defaulted On Equipment Loans Worth $103M CryptoBlog

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

Bitcoin mining firm Iris Energy faces default on 2 loans

On November 7, 2022, bitcoin mining company Iris Energy notified investors of the October operations and the company noted that it was currently mining a hash rate of around 3.9 exahash per second (EH/s). The bitcoin mining firm also said its “Mackenzie expansion” in British Columbia, Canada, from 50 megawatts (MW) to 80 MW is “on track to be powered by the end of Q4 2022.” . In addition, the Company’s Childress facility in Texas is still in the construction and power-up phase and operations continue to that end.

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

However, a Form 6-K filing with the SEC filed in November indicates that two lenders allege the company defaulted on $103 million in equipment loans. The loans are held by two special purpose vehicles (SPVs) and the lenders have sent an “alleged notice of acceleration” for the alleged defaults. Iris Energy said much of its exahash is unaffected by the alleged SPV acceleration notification. Iris Energy’s SEC filing states:

2.4 Miner EH/s and all Group Data Center capacity and development pipeline are not affected by the Limited Recourse Equipment Financing Agreements or the so-called Acceleration Notice.

The bitcoin miner’s filing with the US regulator follows other mining companies dealing with financial issues. For example, in late September Bitcoin.com News reported that Compute North had filed for bankruptcy protection. Additionally, Core Scientific told the US SEC that it is experiencing financial difficulties as “Core Scientific’s operating performance and liquidity have been severely impacted by the prolonged decline in the price of bitcoin.”

Regarding the Iris Energy case, one SPV says he owes him $71 million, and the other claims Iris Energy owes him $32 million. Iris Energy said it has data center capacity available and that it “continues to explore the possibilities of using this capacity to host third-party miners or to self-operate using additional miners which the company has or chooses to buy”.

Iris Energy shares (Nasdaq: IREN) lost 19.60% against the US dollar over the past five days. A myriad of bitcoin mining companies have also seen their shares fall 80%-90% in the past 12 months and year-to-date, IREN is down 81.68% against the greenback.

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What do you think of the Iris Energy SEC filing showing two companies alleging default on equipment loans? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is the news manager for Bitcoin.com News and a fintech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written over 6,000 articles for Bitcoin.com News about disruptive protocols emerging today.




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