December 9, 2022

Miner Iris Energy notified the regulator about the default of subsidiaries

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Miner Iris Energy notified the regulator about the default of subsidiaries

A major cryptocurrency miner has told the U.S. Securities and Exchange Commission (SEC) that two subsidiaries are unable to meet $103 million in liabilities.

The two divisions of Iris Energy acquiringsecured equipment, faced debts on loans for $32 million (secured equipment with a total hash rate of 1.6 ECH/s) and $71 million (1.6 ECH/s). According to representatives of the miner, the lender believes that the company is unable to continue "good faith discussions of debt restructuring."

Mining company noticedregulator that earns $2 million every month from the extraction of digital assets. While monthly payments on loans amount to $7 million. The next payment is due on November 8.

Iris Energy warned the regulator that ifthe creditor does not agree to the restructuring of the debt, then the company will not be able to fulfill its obligations. As a result, the miner is likely to lose the equipment that is pledged and will not be able to mine cryptocurrency in order to pay off the debt.

Iris Energy owes another $1 million to other creditors.The loan is secured by ASIC miners with an aggregate hash rate of 0.2 Eh/s. The company said that it has a reserve of $53 million, and a fleet of equipment not pledged to creditors provides a hash rate of 2.4 ECH / s.

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

In March, Iris Energy announced plans to purchasenew 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.