Iris Energy Unplugs Its Miners Following $100M Loan Default

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Will and Daniel Roberts; Photo Source: The Australian

Bitcoin miner, Iris Energy, has unplugged a large majority of its miners due to a default notice on a $107 million loan, which the machines were securing. The machines represent a greater part of the company’s hash rate. 

The company provided an update on its three limited recourse equipment financing facilities with the special purpose vehicle of the company, which are the Non-Recourse SPV 1, Non-Recourse SPV 2, and Non-Recourse SPV 3.

Iris Energy noted that these facilities had received a default and acceleration notice from its lender, who has demanded that these facilities be paid in full immediately.



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Although the company is still determining its next move, it hopes the lender takes action to enforce the indebtedness and its right in the collateral securing the Non-Recourse SPV 2 and Non-Recourse SPV 3. This also includes the 3.6EH/s of miners securing such facilities and other assets of Non-Recourse SPVs. 

Due to this notice, certain subsidiaries of the company have terminated their hosting arrangements with Non-Recourse SPV 2 and Non-Recourse SPV 3, and none of the 3.6 EH/s of miners owned by the subsidiaries are operating.

With the termination of the hosting arrangements with the facilities, the Group will explore other opportunities to utilize its available data center capacity. It will consider the industry's current scarcity of hosting data center capacity. 

The Group will also recognize the possibility of maximizing $75 million of prepayments made to Bitmain in respect of an additional 7.5EH/s of contracted miners.

In a statement by Iris, 

“The Group’s data center capacity and development pipeline are unaffected by the recent events in respect of the relevant Facilities.”

However, the company admitted that if the situation continues, it would have material adverse effects on the business and its financial condition, cash flow, and results of operations. 

Written by
Chiagoziem Bede Ikwueze

Bitcoin miner, Iris Energy, has unplugged a large majority of its miners due to a default notice on a $107 million loan, which the machines were securing. The machines represent a greater part of the company’s hash rate. 

The company provided an update on its three limited recourse equipment financing facilities with the special purpose vehicle of the company, which are the Non-Recourse SPV 1, Non-Recourse SPV 2, and Non-Recourse SPV 3.

Iris Energy noted that these facilities had received a default and acceleration notice from its lender, who has demanded that these facilities be paid in full immediately.



Get Our Free Newsletter

Subscribe to our newsletter to get tips, our favorite services, and the best deals on Bitcompare-approved picks sent to your inbox


Although the company is still determining its next move, it hopes the lender takes action to enforce the indebtedness and its right in the collateral securing the Non-Recourse SPV 2 and Non-Recourse SPV 3. This also includes the 3.6EH/s of miners securing such facilities and other assets of Non-Recourse SPVs. 

Due to this notice, certain subsidiaries of the company have terminated their hosting arrangements with Non-Recourse SPV 2 and Non-Recourse SPV 3, and none of the 3.6 EH/s of miners owned by the subsidiaries are operating.

With the termination of the hosting arrangements with the facilities, the Group will explore other opportunities to utilize its available data center capacity. It will consider the industry's current scarcity of hosting data center capacity. 

The Group will also recognize the possibility of maximizing $75 million of prepayments made to Bitmain in respect of an additional 7.5EH/s of contracted miners.

In a statement by Iris, 

“The Group’s data center capacity and development pipeline are unaffected by the recent events in respect of the relevant Facilities.”

However, the company admitted that if the situation continues, it would have material adverse effects on the business and its financial condition, cash flow, and results of operations. 

Written by
Chiagoziem Bede Ikwueze