Several bad things are happening in the Bitcoin and cryptocurrency worlds. The main reason for these bad things is that the cryptocurrency market is going down right now. Even though experts are optimistic about the future, investors are still unsure about their investments.
Some crypto companies look for ways to keep paying their employees and clients. Others are making sure they will have enough money until the end of 2022. One company like this is Iris Energy, which mines bitcoin.
Based on its data center infrastructure, Iris Energy is a company that mines bitcoin. It aims to power operations by using renewable energy that isn’t being used much or is plentiful.
Iris Energy is in trouble because of the crypto crash.
On Tuesday, Iris Energy told NYDIG about the financial arrangements it had made with them. NYDIG is a bitcoin broker that gives money to ASICs, which are machines that mine bitcoins.
The Bitcoin mining company said that some of the mining vehicles were having a few problems. It said that when it comes to cash flow, some SPVs (Special Purpose Vehicles) are not working up to par. So, it’s hard to pay back the money it owes to its lender.
Iris said that out of the three non-resource SPVs that the company financed, there is still a principal debt of $104 million that needs to be paid. Also, the non-resource SPVs are expected to pay $7 million in interest every month. Given that they make $2 million in the same time period, this number seems pretty high.
Also, miners of SPVs will get between $65 million and $70 million, which is much less than what it cost to make them. The situation is not very good for the company that mines Bitcoin. So, it is said that the second and third SVPs do not make the central payments that were supposed to happen on November 8. This decision could cause more trouble, but the company is ready to handle it.
Iris Energy is in trouble because of the crypto crash.
On Tuesday, Iris Energy told NYDIG about the financial arrangements it had made with them. NYDIG is a BTC broker institution that gives money to ASICs, which are machines that mine Bitcoin.
The BTC mining company said that some of the mining vehicles had some problems. It said that when it comes to cash flow, some SPVs (Special Purpose Vehicles) are not working up to par. So, paying back what it owes to its lender is pretty hard.
Iris said that out of the three non-resource SPVs that the company financed, there is still a principal debt of $104 million that needs to be paid. Also, the non-resource SPVs are expected to pay $7 million in interest every month. Given that they make $2 million in the same time period, this number seems pretty high.
Also, miners of SPVs will get between $65 million and $70 million, which is much less than what it cost to make them. The situation is not very good for the company that mines Bitcoin. So, it is said that the second and third SVPs do not make the central payments that were supposed to happen on November 8. This decision could cause more trouble, but the company is ready to handle it.
The company’s total hash power, which is 3.6 EH/s, tends to go offline. But this is only going to happen if the event goes to default. This hash power is the same as the total hash rate of the BTC network, which is about 1.5%.
Iris Energy is not the only crypto company that has trouble paying its debts and has to file for bankruptcy. In October, Core Scientific posted that it might go into default because it couldn’t pay some of its debts.
According to the company, it only had about 24 bitcoins and $26 million in cash left in its reserve. It had up to 7,000 BTC in its possession as of June, so this drop is a big deal.
READ MORE ARTICLES;
