Bitcoin (BTC) mining company Iris Energy Limited has announced that two of its miners have received default notices for more than $100 million in debt.
The mining operator operating in Sydney, Australia, said in a document submitted to the Securities and Exchange Commission that lenders to miners failed to enter debt restructuring negotiations in good faith.
The current dispute began when the capacities of two groups of Bitcoin miners operated and funded by Iris Energy fell below the income provided by the miners.
Bitcoin Miners Under Iris Energy Have a Total of $103 Million in Unpaid Loans
Iris said the two groups had a total of $103 million in outstanding loans. The mining group also disagrees with the lender’s claims and will not provide additional financial support if the lender refuses to accept the amended terms. In the statement, it was stated that this situation will cause miners to miss the payment to be made tomorrow.
Last week, Iris warned of possible default and stated that miners produce $2 million worth of BTC per month, which is insufficient to meet their monthly payments of $7 million.
The company said in its filing last week that operations could be affected if the lender seizes mining equipment in an attempt to repay the debt.
In a statement released today, it was stated that Iris Energy, including its subsidiaries, had $53 million in a bank as of the end of last month.
The company stated that the two loans, with principal amounts of $32 million and $71 million as of September 30, were secured by mining machines of 1.6 exahash/second (EH/s) and 2.0 EH/s, respectively.
*Not investment advice.
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