Bitcoin miner Iris Energy has agreed to buy $100 million in shares from investment bank B. Riley.
According to an SEC filing, the arrangement has a 24-month time frame during which B. Riley may acquire up to 25 million shares of the firm. According to Iris Energy:
“We intend to use any proceeds from the Facility to fund our growth initiatives (including hardware purchases and acquisition and development of data center sites and facilities), and for working capital and general corporate purposes.”
Publicly-traded Bitcoin miners’ stock values have plummeted this year as the price of bitcoin has dropped by up to 60% and energy expenses have skyrocketed.
In exchange for B. Riley’s pledge, Iris Energy issued 198,174 ordinary shares, which are included in the total.
In July, Core Scientific, another US-based mining company, reached a similar equity-focused transaction with B. Riley. The adjustments are being made as mining companies confront challenging conditions during the slump. Some businesses have sold valuable assets, including Bitcoin holdings, to create operating cash.
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