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

CoinDesk logo CoinDesk 3/28/2022 Aoyon Ashraf
Bitcoin mining ASICs submerged in immersion cooling liquid at a facility in South Spain. (Eliza Gkritsi) © Provided by CoinDesk Bitcoin mining ASICs submerged in immersion cooling liquid at a facility in South Spain. (Eliza Gkritsi)

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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 of Iris Energy’s Bitmain S19j Pro miners, that have a hashrate of about 1.98 exahash per second (EH/s) and has a 25-month term with a 11% per annum interest rate, the company said in a statement on Monday.
  • Iris Energy had 844 PH/s average operating hashrate in February and plans to reach 10 EH/s by early 2023. It also has secured a total of 15 EH/s worth of miners.
  • 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 the 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 declined about 1.2%. The shares of the miner were up almost 3% during early trading on Monday.

Read more: The Future of Mining Finance: Time to Get Creative

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