Iris Energy Limited is at risk of default

  • 11:01 Nov 03, 2022
  • 294
Iris Energy Limited is at risk of default

It's a $103 million debt, and the estimated default date could be as early as November 8. In this regard, the operator of data processing for BTC mining seeks to find a way to refinance this obligation.

The reason for this situation is that the payments have begun to exceed the level of income that the miners provide. As a result, a confrontation between the company and its creditors will arise shortly.

Iris Energy should pay $103 million, but if the payment is not made by November 8, creditors may demand immediate repayment. For its part, the company submitted a report to the SEC, which indicated that miners generate $2 million each month with its miners, which does not allow it to recoup the $7 million.

Iris has now begun the negotiating process regarding the possibility of restructuring the debt. However, if the creditors do not meet their demands, the company will be in default, and its hardware could be confiscated against the debt.

According to Iris Energy, the company has $53mn in reserves. Besides, some facilities and the development line will not be affected by the financial arrangements.

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