Iris Energy Unaffected by Halt of New Power Connections for Bitcoin Miners

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These projects will be temporarily suspended for 18 months while the government develops a framework for licensing renewable energy-powered bitcoin miners.

In November 2022, the government of the province of Manitoba in Canada suspended new connections to cryptocurrency mining projects. While Qubec has implemented a framework for cryptocurrency miners that includes higher rates and a cap on the amount of electricity available, according to the announcement.

British Columbia is attractive to green bitcoin miners because it has some of the cheapest electricity rates in North America and an abundance of renewable hydroelectricity.

Cryptocurrency mining consumes huge amounts of electricity to run and cool banks of powerful computers 24/7/365, while creating very few jobs in the local economy, the minister said Osborne.

The pullback in energy-intensive cryptocurrency mining by Canadian regional governments comes after the collapse of Bahamas-based exchange FTX capped a horrific year of fraud and bankruptcies for investors in the sector. .

Shares of Iris Energy have crashed 95.8% to a market value of $65.4 million since its November 2021 initial public offering at $28 per share.

The bitcoin miner has attracted several prominent Australian investors to its share ledger, including Grok Ventures, Wilson Asset Management and Regal Funds Management.

Sydney-based venture capital group Grok Ventures, which describes itself as focused on investing in renewable energy and clean technology, did not respond to a request for comment on its investment on November 22.

bitcoin price

Over the past week, bitcoin price has traded at around US$16,800. For November, Iris Energy said it earned an average revenue of $18,955 per bitcoin on electricity costs of $12,581 per bitcoin.

Total bitcoin mined fell 66% from October in a plunge it said primarily reflected the termination of the group’s limited-recourse mining equipment financing facilities following receipt of an acceleration notice. of the lender.

It said approximately $103.4 million of the principal amount of the loans was outstanding under the special purpose vehicle (SPV) facility as of October 31 and the lender declared the entire principal amount due and payable. .

However, Iris has repeatedly stated that the non-recourse loan structure means the lender has no legal rights over the parent company.

In a non-recourse loan, the lender has no rights other than the security offered in the event of default. Iris revealed that she expects the creditor to secure her rights to the bitcoin mining hardware as collateral.

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