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Bitcoin miner Iris Energy is facing a $103 million claim from creditors

Bitcoin (BTC) miner Iris Energy says it received a warning letter from mining rig maker Bitmain Technologies, according to a new filing with the U.S. Securities and Exchange Commission Monday.

The notice alleged that Iris Energy failed to conduct “good faith restructuring discussions” on certain capital payments due on November 8. Additionally, Iris Energy last week received a separate notice from creditors alleging that it had “failed to maintain adequate insurance” and would constitute default if not rectified within 10 days.

Headquartered in Australia, Iris Energy is known for operating mostly Canadian bitcoin mining centers that make full use of renewable energy. In October, the company had an average mining hash rate of 3.9 EH/s, which is about 1.5% of the Bitcoin network’s mining capacity.

According to Iris Energy, the three disputed credit facilities are $1 million, $32 million, and $71 million in equipment finance loans, respectively, which are compounded by 0.2 exahash per second (EH/s), 1.6 EH/s /s and 2.0 EH/s secured by Bitcoin are miners. The company says 2.4 EH/s miners and all data center capacity and development pipeline are unaffected by the notice.

“The lender of each non-recourse special purpose vehicle has no recourse under the terms of the Facilities and no cross-collateralization in respect of assets of the Company or any of its other subsidiaries.”

It appears that a combination of high electricity costs, lower bitcoin prices, and increasing network difficulties has caused the company to hit hard times. Despite the company having $53 million in cash and generating over $8.7 million in revenue each month, the company announced that its gross profit is only $2 million per month under current conditions, well below monthly principal and interest payments of $7 million.

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