B. Riley may purchase up to $100M stake in Bitcoin miner Iris Energy

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Aus­tralia-based cryp­to min­ing firm Iris Ener­gy has signed a deal with B. Riley giv­ing the cap­i­tal mar­ket com­pa­ny the option to pur­chase up to 25 mil­lion of its shares.

Accord­ing to a Fri­day fil­ing with the Unit­ed States Secu­ri­ties and Exchange Com­mis­sion, Iris Ener­gy inked an agree­ment with B. Riley Prin­ci­pal Cap­i­tal II relat­ed to the “poten­tial offer and sale” of up to 25 mil­lion of the Bit­coin (BTC) min­ing firm’s ordi­nary shares, worth $100 mil­lion. The fil­ing states B. Riley has a 24-month time­frame to com­plete the pur­chase start­ing “as soon as prac­ti­ca­ble” after the effec­tive date of the reg­is­tra­tion statement.

Because Iris Ener­gy qual­i­fies as a “for­eign pri­vate issuer” under U.S. secu­ri­ties laws, the firm said it intend­ed to fol­low “most Nas­daq cor­po­rate gov­er­nance list­ing stan­dards” while also adher­ing to Aus­tralian law. The com­pa­ny already expect­ed to issue 198,174 shares to B. Riley “as con­sid­er­a­tion for its irrev­o­ca­ble com­mit­ment” to pur­chase more shares.

Accord­ing to Iris Energy’s fil­ing, the com­pa­ny planned to use pro­ceeds from the sale to fund growth ini­tia­tives includ­ing pur­chas­ing min­ing hard­ware and devel­op­ing data centers:

“As of the date of this prospec­tus, we can­not spec­i­fy with cer­tain­ty all of the par­tic­u­lar uses, and the respec­tive amounts we may allo­cate to those uses, for any net pro­ceeds we receive. Accord­ing­ly, we will have broad dis­cre­tion in the way we use these proceeds.” 

The cryp­to min­ing company’s shares were list­ed on Nas­daq in Novem­ber 2021 fol­low­ing a $200-mil­lion fund­ing round. B. Riley Secu­ri­ties, an affil­i­ate of the cap­i­tal mar­ket firm, also act­ed as a joint book-run­ning man­ag­er with Cowen for Strong­hold Dig­i­tal Mining’s plan to list rough­ly 6 mil­lion shares on the Nas­daq in an ini­tial pub­lic offer­ing in Octo­ber 2021. 

Relat­ed: Maple Finance launch­es $300M lend­ing pool for Bit­coin min­ing firms

Oth­er min­ing firms based in North Amer­i­ca seem to have expe­ri­enced finan­cial dif­fi­cul­ties amid the mar­ket down­turn. Core Sci­en­tif­ic and Bit­farms sold some of their BTC hold­ings in July, and Com­pute North filed for Chap­ter 11 bank­rupt­cy on Thurs­day. How­ev­er, cryp­to min­ing firm CleanSpark inked a $33-mil­lion deal to pur­chase Maw­son’s Bit­coin min­ing facil­i­ty in September.

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