Bitcoin Mining Firm Iris Energy Might Fail To Pay Off Its Loans


Various unfortunate cases are emerging in the Bitcoin and cryptocurrency ecosystem. The main reason for these adverse events boils down to the current downtrend of the cryptocurrency market. Regardless of the experts’ optimistic predictions, investors remain skeptical about future investments.

Some cryptocurrency companies are looking for ways to keep their staff and clients. Others make sure not to run out of funds before the end of 2022. An example of these companies is the Bitcoin miner Iris Energy.

Iris Energy is a Bitcoin mining company based on its data center infrastructure. Its objective is to boost operations through access to renewable energy that is underused or abundant.

Its main goal is to support communities and the broader Bitcoin network and decarbonize energy markets.

Iris Energy Faces a Crisis Due to Crypto Crash

On Tuesday, Iris Energy revealed your transactions with NYDIG regarding the disposition of funds. NYDIG is a Bitcoin brokerage institution responsible for providing funds for ASICs – Bitcoin mining machines.

The Bitcoin mining company mentioned some problems with some of the mining vehicles. He stated that some SPVs (special purpose vehicles) are not operating at the standard level with respect to cash flow. Therefore, it is quite difficult to meet the debts of your lender.

Iris stated that there is still outstanding principal debt of $104 million to be paid from the three SPVs with no company-financed resources. In addition, non-recourse SPVs are expected to pay interest of $7 million per month. This figure seems relatively high considering the $2 million profit they make in the same period.

Also, SPV miners will receive between $65 million and $70 million, which is much lower than the cost. The condition is not very favorable for the BTC mining company. Therefore, he stated that the second and third SVPs do not make the capital payments scheduled for November 8. This decision could generate a major crisis, but the company is willing to address it.

Iris Energy is Facing a Crisis Due to Crypto Crash

On Tuesday, Iris Energy revealed your transactions with NYDIG regarding the disposition of funds. NYDIG is a BTC brokerage institution responsible for providing funds for ASICs – Bitcoin miners.

Bitcoin price is trading sideways l BTCUSDT at Tradingview.com

The BTC mining company mentioned some problems with some of the mining vehicles. He stated that some SPVs (special purpose vehicles) are not operating at the standard level with respect to cash flow. Therefore, it is quite difficult to meet the debts with your lender.

Iris stated that there is still outstanding principal debt of $104 million to be paid from the three SPVs with no company-financed resources. In addition, non-recourse SPVs are expected to pay interest of $7 million per month. This figure seems relatively high considering the $2 million profit they make in the same period.

Also, SPV miners will receive between $65 million and $70 million, which is much lower than the cost. The condition is not very favorable for the BTC mining company. Therefore, he stated that the second and third SVPs do not make the capital payments scheduled for November 8. This decision could generate a major crisis, but the company is willing to address it.

Bitcoin mining company Iris Energy could default on its loans

There is a tendency for the company’s cumulative hash power of 3.6 EH/s to go offline. But this will only happen if the event becomes default. This hash power is equal to the total hash rate of the BTC network, which is around 1.5%.

Meanwhile, Iris Energy is not the only cryptocurrency company facing the challenge of paying down debt through bankruptcy. In October, Core Scientific shared a post indicating the possibility of default due to its inability to meet certain debts.

According to the company, there were only about 24 BTC left in its reserve and $26 million in cash. The drop is significant considering that as of June he had up to 7,000 BTC in his possession.

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