Iris Energy, a Bitcoin (BTC) mining company has recently submitted a filing at the US Securities and Exchange Commission (SEC).
The filing is pertaining to the miner receiving a default notice from Bitmain Technologies, one of the largest mining rig manufacturers in the entire world.
Iris Energy Served with Default Notice
The notice that Iris Energy has received from Bitmain Technologies is about the miner failing to come up with a plan for principal payments.
The notice clearly states that Iris Energy has not restructured a principal payments structure, which is not a good thing from their end.
In the notice, Bitmain Technologies has added that the payments they are referring to are the ones due on November 8.
Unfortunately for Iris Energy, the notice it has received from Bitmain Technologies is not the only one the firm has received.
It was just last week when the Bitcoin miner received a notice from creditors. The notice from the creditors was about Iris Energy not being able to provide them with sufficient insurance.
The notice also stated that Iris Energy has 10 days from receiving the notice to address and fix the issue. If not, they will have to proceed with constituting a default over the Bitcoin miner.
Iris Energy is not among the largest Bitcoin mining firms in the crypto-verse but it does contribute to the Bitcoin mining sector.
The firm is based in Australia and the majority of the mining centers it operates are based in Canada. One of the plus points of Iris Energy is that the energy it uses for Bitcoin mining is renewable.
According to statistics, the average mining hash rate Iris Energy was able to maintain was 3.9 EH/s. The total exahash per second Iris Energy generates for Bitcoin mining is 1.5% of the industry’s mining capacity.
Issue Faced by Iris Energy
Just recently, Iris Energy reported that it is generating a significant amount of revenue per month from its mining operations.
The firm reported that on average, they are able to generate around $8.7 million per month from the mining operations. It also added that it has $53 million in cash so there is no problem at all.
The firm recently disclosed that the gross profit they are able to generate on a monthly basis is around $2 million.
As a result, the company is unable to fulfill the monthly interest and principal payments that translate to around $7 million.
In recent months, the firm has also hinted that it has taken a huge negative impact on its business due to multiple factors.
These factors include increasing network difficulty, lower Bitcoin prices, and high costs of electricity.