Iris Energy Faces Default On $103 Million Of Debt

Iris Energy Limited, a Bitcoin mining data center operator, may soon be in default on more than $100 million in debt and is attempting to restructure that obligation.

Payments on two sets of Iris Energy-financed bitcoin miners exceeded the capability of the income the miners now deliver, perhaps leading to a stalemate with lenders.

The miners in question are funded to $103 million, which lenders may declare immediately payable if payment is not delivered by a previously agreed-upon November 8 date.

According to a filing with the Securities and Exchange Commission (SEC), Iris is not anticipated to make the payment since the miners earn $2 million BTC each month, which is inadequate to balance a monthly $7 million finance obligation.

Iris said it still has $53 million in reserves and that the funding arrangements have not harmed a portion of the company’s miners, data center capacity, or development pipeline.

Iris Energy is in negotiations with lenders to restructure the funding, but if the conditions of the debt are not changed, the company will default. Lenders may confiscate mining equipment to repay debt, which might disrupt existing operations, according to the business.

If an equipment foreclosure happens, Iris said it might explore third-party data hosting and self-mining alternatives.

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