Iris Energy faces default by Nov. 8 on financed bitcoin miners

Quick Take

  • Payments on financed bitcoin miners operated by Iris Energy Limited fell beyond the capacity of the income the miners currently provide, in what may be a standoff with lenders.

  • If a payment is not made by Nov. 8, Iris will face a default, and lenders may declare the aggregate debt of $103 million from equipment financing to be due immediately.

Bitcoin mining data center operator Iris Energy Limited may soon be in default on more than $100 million in debt and is looking to refinance that obligation.

Payments on two groups of financed bitcoin miners operated by Iris Energy fell beyond the capacity of the income the miners currently provide, in what may become a standoff with lenders.

The miners in question are financed to the tune of $103 million, an amount that lenders may declare immediately due if a payment is not made by a prior arranged Nov. 8 deadline. It is a payment that Iris is not expected to make, according to a filing with the Securities and Exchange Commission (SEC), which showed the miners generate $2 million BTC a month, insufficient to offset a monthly $7 million financing payment.

Iris is in talks with lenders to restructure the financing, however if the terms of the debt are not modified, a default will occur. Lenders may seize mining equipment to recoup the debt, which may affect ongoing operations, the company said.

Iris reported it still has $53 million in reserves, and that a portion of the company’s miners and data center capacity and development pipeline remain unaffected by the financing arrangements.

Iris indicated that if an equipment foreclosure occurs it may seek third-party data hosting and self-mining opportunities.


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