The financing is secured by 19,800 Bitmain S19j Pro miners, each of which has a hashrate of about 1.98 exahash per second.
Iris Energy (IREN), an Australian bitcoin miner, has raised $71 million in equipment financing from institutional bitcoin broker NYDIG.
The financing is secured by 19,800 Bitmain S19j Pro miners with a hashrate of approximately 1.98 exahash per second (EH/s), and has a 25-month term with an interest rate of 11% per annum, Iris Energy said in a statement on Monday.
Iris Energy’s average working hashrate was 844 PH/s in February, and the company intends to reach 10 EH/s by early 2023. Additionally, it has obtained 15 EH/s worth of miners.
The miner stated that around 10 EH/s of its total stock of miners remains unencumbered, providing the company with flexibility and the option to seek further non-dilutive capital.
“This is our third equipment financing facility [with NYDIG], and we look forward to formalising further loan facilities when miners are delivered and installed,” said Daniel Roberts, Iris Energy’s Co-Founder and Co-CEO.
The financing comes as miners hunt for novel ways to fund their operations, including through bitcoin-backed loans and asset-backed loans secured by the companies’ mining rigs.
Iris Energy’s stock has lost approximately 5.5 percent this year, while bitcoin has lost approximately 1.2 percent. The miner’s shares were up nearly 3% in early trading on Monday.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.