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

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

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Australian crypto mining company Iris Energy has signed an agreement with B. Riley that allows the capital markets company to buy up to 25 million of its shares.

According to a filing with the US Securities and Exchange Commission on Friday, Iris Energy entered into an agreement with B. Riley Principal Capital II for a “potential offer and sale” of up to 25 million shares of the Bitcoin (BTC) mining company’s common stock. , worth $100 million. The filing states that B. Riley will have 24 months to complete the purchase, beginning “as soon as practicable” after the effective date of the registration statement.

As Iris Energy is a “foreign private issuer” under US securities laws, the company said it intends to comply with “most Nasdaq listing standards” while complying with Australian laws. The company already expected to issue 198,174 shares to B. Riley “in consideration of its irrevocable commitment” to buy more shares.

According to Iris Energy’s filing, the company planned to use the proceeds from the sale to finance growth initiatives, including the acquisition of mining equipment and the development of data centers:

“As of the date of this prospectus, we cannot determine with certainty all of the specific uses and amounts that we may allocate to those uses of our net proceeds. Accordingly, we have broad discretion in the use of those proceeds.”

The cryptomining company’s shares were listed on Nasdaq in November 2021 after a $200 million funding round. B. Riley Securities, a subsidiary of the capital markets firm, also served as joint asset manager for Cowen for Stronghold Digital Mining’s plan to list approximately 6 million shares in a Nasdaq IPO in October 2021.

Related: Maple Finance launches $300 million loan pool for Bitcoin mining companies

Other mining companies operating in North America appear to have experienced financial difficulties amid the market downturn. Core Scientific and Bitfarms sold some of their BTC stakes in July, and Compute North filed for Chapter 11 bankruptcy on Thursday. However, cryptomining firm CleanSpark struck a $33 million deal to buy Mawson’s Bitcoin mining facility in September.