BTC Miner Iris Energy Cut its Mining Hardware After $108 Mln Loan Default
- It states its mining capacity remains at 2.4 EH/s which includes 1.1 EH/s of hardware in operation and around1.4 EH/s of rigs in transit or pending deployment.
- Iris adds that its data center capacity and development pipeline are unaffected by the recent events.
Sydney-based crypto mining firm Iris Energy states that it is defaulting on a $108 Million loan that will shut down 3.6 EH/s of its mining capacity. In its official statement, Iris Energy added that its mining capacity remains at 2.4 EH/s which includes 1.1 EH/s of hardware in operation and around 1.4 EH/s of rigs in transit/ pending deployment.
A filing by Iris to the U.S. Securities and Exchange Commission (SEC) disclosed that it had cut its mining hardware used as collateral in a $107.8 million loan as of November 18. The Bitcoin miner added that its “data center capacity and development pipeline are unaffected by the recent events.”
Iris also has $US75 million in prepayments outstanding to mining rig manufacturer Bitmain Technologies under a previous contract to acquire mining equipment. Earlier this month, Iris Energy said it had received a default notice from Bitmain. The Bitcoin miner is looking into the possibility of using $75 million of prepayments made to Bitmain in respect of an additional 7.5 EH/s of contracted miners for self-mining.
Iris Energy is known for operating mainly Canadian Bitcoin mining centers that fully utilize renewable energy. Last month, the firm had an average mining hash rate of 3.9 EH/s, representing around 1.5% of the Bitcoin network’s mining capacity.
Irrespective of having $53 million in cash and generating more than $8.7 million each month in revenue, the firm had earlier disclosed that its gross profit only amounts to $2 million monthly at current conditions, well below the monthly principal and interest payments of $7 million.
Bitcoin miners have had a rough year, with Bitcoin plunging to new lows, hash rates, and energy prices increasing rapidly. Statistics recorded this past weekend revealed that BTC’s average cost of production has been a lot higher than BTC’s USD value recorded on spot market exchanges.
The macromicro.me report reveals that bitcoin’s price compared to the cost of BTC production, has been lower since October 6, 2022. If bitcoin prices don’t increase or drop lower, several BTC Mining operations like Iris Energy will eventually face a cash crunch.