Bitcoin mining: Monster balances on machines

Iris Energy is a bitcoin (BTC) mining data center operator. As of October 31, the company had $53 million in cash and cash equivalents. It turns out that Iris Energy Limited had been operating BTC mining devices for some time with low revenue capacity. Yet the machines have been financed by a lender who is waiting to be repaid by the company.

Mining devices disconnected for non-payment

The SEC has published a report on the issuer Iris Energy. She reported that the bitcoin (BTC) mining data center company has unplugged a large majority of its miners. The company made this decision following receipt of a notice of default from its lender. Unplugged bitcoin mining devices apparently accounted for a large share of Iris Energy’s hash rate.

Now that they are no longer functional, 90 megawatts of electrical capacity is available. The company intends to use this amount of energy to eventually seize other opportunities. Recall that Iris Energy used its miners to guarantee for more than 100 million dollars of debts.

Miners were used as collateral for debt

The issuer released a press release stating:The group continues to explore opportunities to utilize the available capacity of its data centers, given the current scarcity of industry hosting data center capacity and the prospect of using 75 million dollars in advance payments already made to Bitmain for an additional 7.5 PE/s of contracted miners to continue self-mining“.

Iris Energy machines no longer as profitable as before

Iris Energy explained that the current mining economy does not allow it to make a profit from mining devices. Thus, the operator did not earn enough money to be able to make the appropriate payments to the lender. Each month, the machines brought in a gross profit of around 2 million BTC, which was not enough to pay off $7 million in debt.

In reality, the mining devices served as collateral for debts estimated at approximately 107.8 million of dollars. In addition, the company Iris Energy has made it clear that its decision will have no impact on its operation. It claimed that its data center capacity as well as its development pipeline remain intact.

Iris Energy deactivated approximately 3.6 PE/s of mining devices. This has lowers its computing capacity to 2.4 PE/s. It should be noted that there are 1.3 pe/s of BTC mining machines in transit or awaiting deployment. At the same time, 1.1 PE/s of devices are operational in the company.

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