Iris Energy, a company that operates mining and data centers for cryptocurrencies, has fallen behind on a few of the loans it had to buy mining equipment.
The business said earlier this month that two of its wholly-owned special purpose vehicles (SPVs), formed specifically to finance certain miners, were on the verge of defaulting because the miners covered by those SPVs were earning less cash than their payback obligations.
The business said this week that two of its subsidiaries had stopped making payments on their obligations. Even if the entire firm is still there.
The lender has sent default and acceleration notifications to the Non-Recourse SPVs about the facilities, along with a request that each facility is quickly and fully repaid, the business said. The firm anticipates that the lender will take measures to enforce the debt and its rights in the collateral underlying the Facilities of Non-Recourse SPV 2 and Non-Recourse SP3 even though it is impossible to predict what steps may be taken.
Iris said that as a result of the warning, a few further firm subsidiaries have canceled their hosting contracts with Non-Recourse SPVs 2 and 3, and none of the 3.6 EH/s of miners they hold are now in operation.
Debts owed by Non-Recourse SPV 2 and SPV 3 sum more than $107 million. Currently, the two vehicles don’t generate enough cash flow to satisfy their debt financing requirements; they each generate around $2 million in monthly gross profit from Bitcoin mining, but they have $7 million in monthly payment obligations.
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