Bitcoin mining company Iris Energy may not repay its loans

Several unfortunate cases are cropping up in the bitcoin and crypto ecosystem. The main reason for these adverse events comes down to the current bearish trend in the cryptocurrency market. Regardless of the optimistic predictions of experts, investors are still skeptical about future investments.

Some crypto companies are looking for ways to support their staff and customers. Others are careful not to run out of funds before the end of 2022. An example of such companies is Bitcoin miner Iris Energy.

Iris Energy is a Bitcoin mining company based on its data center infrastructure. It aims to power operations by accessing underutilized or abundant renewable energy.

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

Iris Energy faces crisis due to crypto crash

Tuesday, Iris Energy revealed its dealings with NYDIG regarding the arrangement of funds. NYDIG is a bitcoin brokerage institution responsible for providing funds for ASICs - bitcoin mining machines.

The bitcoin mining company mentioned some issues with some of the mining vehicles. He said that some SPVs - Special Purpose Vehicles do not operate to cash standards. It is therefore quite difficult to deal with debts to your lender.

Iris said there remains an outstanding principal debt of $104 million to be paid on the three company-funded unresourced SPVs. In addition, destitute SPVs would have to pay interest of $7 million per month. This figure seems relatively high considering the $2 million in profits they make over the same period.

Additionally, SPV miners are to receive $65-70 million, which is well below the cost. The situation is not very favorable for the mining company BTC. Thus, he said that the second and third SVPs do not make the main payments scheduled for November 8. This decision could lead to a new crisis, but the company is ready to face it.

Iris Energy faces crisis due to crypto crash

Tuesday, Iris Energy revealed its dealings with NYDIG regarding the arrangement of funds. NYDIG is a BTC brokerage institution responsible for providing funds for ASICs - Bitcoin mining machines.

Mining company BTC mentioned some issues with some of the mining vehicles. He said that some SPVs - Special Purpose Vehicles do not operate to cash standards. It is therefore quite difficult to deal with debts to your lender.

Iris said there remains an outstanding principal debt of $104 million to be paid on the three company-funded unresourced SPVs. In addition, destitute SPVs would have to pay interest of $7 million per month. This figure seems relatively high considering the $2 million in profits they make over the same period.

Additionally, SPV miners are to receive $65-70 million, which is well below the cost. The situation is not very favorable for the mining company BTC. Thus, he said that the second and third SVPs do not make the main payments scheduled for November 8. This decision could lead to a new crisis, but the company is ready to face it.

The company's cumulative hashing power of 3.6 EH/s tends to disconnect. But that will only happen if the event boils down to default. This hash power is equal to the total hash rate of the BTC network, which is around 1.5%.

Meanwhile, Iris Energy isn't the only crypto firm facing the challenge of paying its debts through bankruptcy. In October, Core Scientific shared a message indicating the possibility of a default due to its inability to honor 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 in June, she had up to 7,000 BTC in her possession.

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