Bitcoin miner Iris Energy (IREN) signed a deal to sell up to $100 million in equity to investment bank B. Riley over the next two years, marking the bank's second big investment in the industry that is facing serious market headwinds.
In July, B. Riley signed a similar deal in nature and size with Core Scientific (CORZ), the largest bitcoin miner in the world by actual hashrate.
Publicly-traded bitcoin miners have seen their stock prices tumble this year as the price of bitcoin has slumped by as much as 60% and energy costs soar.
B. Riley may buy up to 25 million of IREN ordinary shares in the 24 months starting Friday, according to a filing with the U.S. Securities and Exchanges Commission. If the bank chooses to buy all of those shares for about $100 million, it would have a 31% stake in the miner, the filing said.
Iris Energy issued B. Riley 198,174 ordinary shares as consideration for B. Riley’s commitment, which are included in the total.
Shares of Iris were down almost 12% in early trading on Friday.
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