Bitcoin Miner Iris Energy Gets $71M Equipment Financing From NYDIG

The financing is backed by 19,800 Bitmain S19j Pro miners that have hashrate of about 1.98 exahash per second.

AccessTimeIconMar 28, 2022 at 1:35 p.m. UTC
Updated Mar 28, 2022 at 2:02 p.m. UTC

Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets

Australian bitcoin miner Iris Energy (IREN) has secured $71 million in equipment financing from institutional bitcoin broker NYDIG.

  • The financing is backed by 19,800 Iris Energy’s Bitmain S19j Pro miners, that have a hashrate of about 1.98 exahash per second (EH/s), and it has a 25-month term with a 11% per annum interest rate, the company said in a statement on Monday.
  • Iris Energy had an average operating hashrate of 844 petahash per second in February and plans to reach 10 EH/s by early 2023. It also has secured a total of 15 EH/s worth of mining machines.
  • The miner said it still has about 10 EH/s of the company’s total stock of miners that remain unencumbered, which provides the company flexibility and option to secure additional non-dilutive funding.
  • “This is our third equipment financing facility together [with NYDIG] and we look forward to formalizing additional loan facilities as miners continue to be delivered and installed,” said Daniel Roberts, co-Founder and Co-CEO of Iris Energy.
  • The financing comes as crypto miners are looking to get creative with their capital needs, including raising funds through bitcoin-backed loans and asset-backed loans that are tied to the companies’ mining rigs.
  • Iris Energy’s stock has fallen about 5.5% this year, while bitcoin has declined about 1.2%. The shares of the miner were up almost 3% during early trading on Monday.

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Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets

CoinDesk - Unknown

Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets