Iris Energy Shuts Down Most of Its Mining Equipment

Iris Energy has shut down most of its devices after default notice received by two of its subsidiaries. This is stated in a filing with the U.S. Securities and Exchange Commission.

The two SPVs are special-purpose entities formed by the company to purchase the equipment, secured by its collateral.

The total debt is estimated at $107.8 million (including accrued interest and penalties for default), according to the filings.

Iris Energy said that the disabled devices accounted for 3.6 EH/s, with the current hashrate at 2.4 EH/s. This includes:

• operating miners (1.1 EH/s);
• machines in transit and deployment (1.3 EH/s).

As of November 20, about 90 MW had been freed.

“The group continues to explore the possibilities of using available data-centre capacity […] . The facilities were deliberately structured to prudent risk management to protect the core business and infrastructure,” Iris Energy said.

The mining company’s securities fell on the news.

In March, Iris Energy raised $71 million of debt financing to purchase new mining equipment.

Earlier, the company signed an agreement with AEP Texas to connect a Texas data centre for Bitcoin mining with a capacity of 600 MW.

In September, Iris Energy signed an agreement with investment bank B. Riley to sell to him up to $100 million of its shares over two years.

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