Iris Energy Risk Of Default With $103 Million Of Equipment Loans
Iris Energy, a company that mines Bitcoins, has been accused of defaulting by its lender on equipment loans totaling $103 million that were held by two special-purpose vehicles (SPV), the company announced on Monday.
The Sydney, Australia-based mining company said in a filing with the Securities and Exchange Commission that the miners’ lender claims they refused to engage in talks for a debt restructure in good faith.
The two mining groups of funded Bitcoin miners, run by Iris Energy, had their capacity decrease below the money the miners generate, which is when the present dispute started.
According to the statement, Iris Energy had $53 million stashed in a bank as of the end of the previous month, including its subsidiaries.
Iris said that the two organizations have outstanding loans totaling $103 million. The mining company rejects the lender’s claims as well and has stated that it won’t offer further funding if the lender doesn’t accept the changed terms. This would result in the miners missing their payout.
Iris Energy is one of several Bitcoin mining companies that are finding it difficult to pay back their debts during the current bear market that has seen incentives decline as energy prices skyrocket.
The first significant company to file for Chapter 11 bankruptcy was Compute North in September. Other prominent companies, including Core Scientific and Argo Blockchain, appeared to be on the verge of insolvency.
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