Iris Energy has to go into decline in Bitcoin mining capacity! Iris Energy is the latest cryptocurrency miner that continues to be affected by the wild market.
Iris Energy – an Australian crypto-mining company whose license operates a BTC site in Canada that operates exclusively on renewable energy – recently stopped mining at two companies. However, the company still maintains that its business continues to be profitable.
Repayment of the loan requested immediately
Subsidiaries operating as special purpose vehicles (SPVs) with Bitmain mining rigs were funded by a $107.8 million loan from the New York Digital Investment Group (NYDIG), the company’s statement read. Unfortunately, the crypto winter has damaged the confidence of many investors in cryptocurrencies, leading to requests for immediate refunds.
Due to the combination of the unfavorable market conditions, the increase in the difficulty of mining and the cost of electricity and the decrease in the value of BTC itself, the developers are making the crypto that for investment is lower than expected. Fortunately for Iris Energy, the machines used for the loan were also listed as contracts, meaning that the debt could be waived simply by handing them over to NYDIG.
Companies remain profitable despite falling share prices
Iris Energy – a company run by Daniel and Will Roberts – recently had a loss in the market of $ 220 million due to a 94.5% drop in the price of its product, IREN. Nevertheless, the brothers said they are still optimistic about the cryptocurrency sector. They reiterated that their business model is still profitable, despite some changes. Now, every bitcoin miner in their company gets a profit of up to $6,000. Although this is enough to keep the business going, it is very good because of the expected salary during better days. “At a gross profit level, it’s clearly still profitable. We just need to work out what level of overhead the business can support. (…) We’re dealt the cards we are and all we can do is pre-empt future issues, which we did around the [SPV] debt facilities by ringfencing them. We’re still super excited about the business and the industry.”
Due to the closure of 2 SPV, the mining capacity of Iris was reduced by more than half – 3.6 EH / s (exahashes per second) has been lost.
This puts Iris’ total mining output at 2.4 E/Hs. Fortunately, there is already a silver lining for the company. Bitmain has already raised $75 million to launch more packages. Iris and Bitmain are currently discussing the operation of these miners, which can increase the mining capacity of Iris by 7.5 EPH.