Mining
Reading time: ~2 m
Iris Energy Ltd is ready to renegotiate the contract on borrowing from NYDIG.
Message from Bitcoin miner Iris Energy Ltd sheds light on the peculiarities of the financial situation that has developed in the company. The key embarrassment for her was that bitcoin miners from the manufacturer Bitmain, in the amount of 36,000 units of S19j Pro, were significantly overvalued downwards. This enables a margin call on the facility, which was provided to Iris Energy Ltd through a special purpose investment vehicle (SPV) by the lender NYDIG.
This circumstance may mean that a significant number of miners can appear on the mining equipment market at the same time, not only from Iris Energy Ltd, but also from other bitcoin miners, if they find themselves or find themselves in a similar financial situation.
The downgrading of the miner valuation in the Iris Energy Ltd situation is due to the fact that $104 million of borrowed funds were provided for a certain capacity, in this case at 3.8 Eh / s, and for the expected gross cash flow, which was defined as $7 million per month, but in fact, from the operation of the miners, 2 million dollars were received per month. The company intends to renegotiate the terms of the loan agreement, and has now received a small deferred payment.
Obviously, the existing difficulties are temporary for the industry, as indicated by the presence of large-scale purchases of bitcoin miners at a low price from a number of participants mining industries that are taking advantage of the window of opportunity that has opened up.
#Decrease #cost #miners #put #Iris #Energy #uncomfortable #financial #situation
