The decline in the cost of miners has put Iris Energy Ltd in an uncomfortable financial situation

Iris Energy Ltd. is ready to renegotiate its contract to borrow from NYDIG.
A message from bitcoin miner Iris Energy Ltd. sheds light on the specifics of the company’s financial situation. A key quandary for it was the fact that bitcoin miners from Bitmain in the amount of 36 thousand units of S19j Pro are significantly overvalued downwards. This makes possible a margin call on the line of credit, which was presented to Iris Energy Ltd through a special investment company (SPV) by the lender in the person of NYDIG.
This circumstance could mean that a significant number of miners, not only from Iris Energy Ltd, but also from other bitcoin miners, could find themselves or will find themselves in a similar financial situation.
The lowered valuation of the miners in Iris Energy Ltd’s situation is determined by the fact that $104 million in borrowed funds were provided at a certain capacity, in this case at 3.8 Eh/s, and at an expected gross cash flow, which was defined as $7 million per month, but in fact $2 million per month was received from operating the miners. The company intends to renegotiate the terms of the loan agreement, and has now received a small deferral of payment.
Obviously, the current difficulties are temporary for the industry, as indicated by the presence of large-scale purchases of bitcoin miners at a low price by a number of members mining industry, who are taking advantage of the window of opportunity that has opened up.

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