Iris Energy expected to reduce mining hardware post $108 million loan default | The Financial Express

Iris Energy expected to reduce mining hardware post $108 million loan default

It is believed that Iris has caused a reduction in its capacity by approximately 3.6 EH/s of mining power

Iris Energy expected to reduce mining hardware post $108 million loan default
On November 21, 2022, Charles Edwards, founder, Capriole Fund, made the observation that the current rate of miner selling had been the most aggressive in a period of seven years

Australian Bitcoin mining firm Iris Energy has become the latest platform to suffer from the cryptocurrency bear market implications, and lost a part of its mining power post defaulting on a loan, as reported by Cointelegraph.

According to Cointelegraph, on November 21, 2022, a filing by the firm to US Securities and Exchange Commission (SEC) showed that it has unplugged its hardware used as collateral in a $107.8 million loan as of November 18, 2022. It is believed that Iris has caused a reduction in its capacity by approximately 3.6 EH/s (exahashes per second) of mining power. The platform mentioned that the capacity stands around 2.4 EH/s which has the inclusion of 1.1 EH/s of hardware in operation and 1.4 EH/s of rigs in transit or pending deployment.

On the basis of information by Cointelegraph, the company highlighted that its “data center capacity and development pipeline are unaffected by the recent events,” and is expected to look for opportunities to utilise its capacity. Reportedly, Iris aims to explore the possibility of “utilising $75 million of prepayments already made to Bitmain in respect of an additional 7.5 EH/s of contracted miners for further self-mining.” 

Moreover, Cointelegraph noted that earlier this month, the firm was given a default notice for $103 million. Reportedly, Iris Energy’s primary operations revolve around Canadian BTC mining centers that function on fully renewable energy. In early August, 2021, the firm doubled its hash rate post energisation of facilities in Canada. It is believed that Bitcoin miners are going through a triple effect of high hash rates and difficulty, high energy prices, and low Bitcoin prices. On November 21, 2022, Charles Edwards, founder, Capriole Fund, made the observation that the current rate of miner selling had been the most aggressive in a period of seven years.

(With insights from Cointelegraph) 

Also Read: Cryptoverse: Let’s talk about DEX, baby

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First published on: 22-11-2022 at 14:51 IST