Hardware that was “generating inadequate cash flow” to meet its “debt finance commitments” had to be unplugged by the Iris mining company.
Iris Energy, an Aussie Bitcoin mining company, is the most recent victim of the cryptocurrency bear market’s pressure, losing a sizeable portion of its mining capacity after failing on a mortgage.
According to a document submitted by the company to the U.S. Securities and Exchange Commission on 21st of November, as of November. 18, it had disconnected the equipment used as the collateral for a loan of almost $108 mn.
The business said that the divisions “generate inadequate working capital to meet their separate borrowed funds obligations.” The business makes a monthly gross profit of about $2 mn in btc but is unable to pay its $7 mn in debt commitments.
Iris Energy Firm Cut Mining Hardware Of Aussie BTC Mining Company Upon Failure Of Repayment Of Loan:
Iris has now decreased the amount of mining power it can produce by about 3.6 EH/s. According to the report, capacity is still at roughly 2.4 EH/s, with 1.1 EH/s of operational equipment and 1.4 EH/s of rig in route or awaiting deployment.
The company received a foreclosure notice over $103 mn earlier in the month. Iris Energy mostly manages entirely renewable energy-powered Canadian BTC mine facilities. The company increased its mining power at the beginning of August after igniting Canadian facilities.
In after-hours trade, Iris Energy shares (IREN) fell eighteen percent on the day to settle at $1.65. On Nov 21, it reached another all low, ninety-four percent below the $24.8 only those high it reached since it first began trading in Nov 2021.