Miner Iris Energy notified the regulator about the default of subsidiaries

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A major cryptocurrency miner told the US Securities and Exchange Commission (SEC) that two subsidiaries are unable to fulfill obligations in the amount of $103 million.

Two divisions of Iris Energy, which purchase equipment on collateral, faced debts on loans of $32 million (secured by equipment with a total hashrate of 1.6 Eh/s) and $71 million (1.6 Eh/s). According to representatives of the miner, the lenderbelieves that the company is not in a position to continue "good-faith discussions on debt restructuring".

The mining company drew the regulator's attention to the fact that it earns money on the extraction of digital assets every monthWhereas the monthly payments on loans are $7 million.The next payment is due on November 8. 

Iris Energy warned the regulator that if the creditor does not agree to the debt restructuring, the company will not be able toAs a result, the miner is likely to lose the equipment that is pledged and will not be able tomine cryptocurrency to pay off debts.

Iris Energy owes another $1 million to other lenders, secured by ASIC miners with a total hashrate of 0.2 Eh/s.The company reported that it has a reserve of $53 million, and the fleet of equipment, not pledged to creditors, provideshashrate2.4 Eh/s.

A number of Iris Energy divisions have already ceasedinteract with companies that have received notice from the lender. Iris Energy is now exploring the possibility of selling the equipment or offering the vacated space for lease to other miners.

In March, Iris Energy announced planspurchase of new equipment for $71 million. The funds were provided by a subsidiary of the American company NYDIG. Iris Energy used its current equipment to secure the loan.