Bitcoin Mining Company Iris Raises IPO Increase to $ 231 Million

[ad_1]

Australian Bitcoin mining company Iris Energy has increased its initial public offering (IPO) on the Nasdaq to $ 231 million.

The energy-turned mining company Bitcoin said in a statement on Wednesday that the final offering price for its 8.26 million common shares was set at $ 28 per share. This exceeded the previously announced price range of $ 25 to $ 27 per share and would value Iris Energy at around $ 1.5 billion.

Trading in shares is expected to begin on Wednesday under the symbol IREN, the company said.

Iris Energy’s listing comes less than a month after Pennsylvania-based energy company Stronghold Digital raised $ 127 million in an IPO in the United States.

Last month, Iris Energy also issued convertible bonds totaling $ 115.5 million bearing 12% annual interest and maturing in October next year, according to its latest IPO prospectus. .

It appears that much of the capital Iris Energy has raised through debt and the IPO will so far go into the pockets of mining hardware maker Bitcoin Bitmain.

$ 533 million abandonment on bitcoin miners

To expand its self-extraction capacity, which is currently 0.7 exahash per second (EH / s) powered by its 30 megawatt facility in British Columbia, Iris Energy has signed large pre-orders for future stocks of Bitmain’s AntMiners S19 series.

The company signed contracts with Bitmain and made initial deposits for around 150,000 units of Bitmain equipment with a whopping total computing power of 14.5 PE / s. That’s almost 10% of Bitcoin’s current network hash rate.

According to the IPO prospectus, Bitmain is expected to start shipping batch after batch of equipment from October 2021 to September 2023.

This means that Iris Energy would have to pay the remaining amount of pre-orders in installments over the next two years in order to achieve its scale-up plan.

“We have estimated the remaining commitments (including shipping charges and provincial sales tax) totaling $ 533 million, payable in installments from October 2021 to October 2023, which relate to deliveries starting in October 2021 and ending in September 2023, “the company said.

Iris Energy does not adopt the so-called “Hodl” strategy which is common to most Bitcoin mining companies listed on the stock exchange. Instead, it sells “all the Bitcoin” it mined and had no digital assets on its balance sheet as of September 30.

© 2021 The Block Crypto, Inc. All rights reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial or other advice.

[ad_2]