On September 23, Iris Energy, an Australian cryptocurrency mining company, agreed to an agreement with B. Riley that gives the capital market firm the opportunity to buy up to 25 million of its shares.
As per the September 23 filing with the Securities and Exchange Commission of the United States, the “potential offer and sale” of up to 25 million of the ordinary shares of the Bitcoin (BTC) mining company, valued at $100 million, was the subject of an agreement between Iris Energy and B. Riley Principal Capital II.
According to the filing, B. Riley has 24 months to complete the acquisition, commencing “as soon as feasible” following the registration statement’s effective date.
Iris Energy said it expected to abide by “most Nasdaq corporate governance listing standards” and Australian legislation because it is recognised as a “foreign private issuer” under U.S. securities regulations.
Riley would already receive 198,174 shares from the corporation “as compensation for its irreversible commitment” to buy additional shares.
Iris Energy stated in its filing that it intended to utilise the sale revenues to finance development plans, such as buying mining equipment and building data centres:
“As of the date of this prospectus, we cannot predict all the specific purposes for the net proceeds we might receive as well as the amounts we might allocate to each one. As a result, we will have a lot of discretion in how we utilise these earnings.”
After a $200 million funding round, the cryptocurrency mining firm’s shares went public on Nasdaq in November 2021.
Stronghold Digital Mining intended to issue around 6 million shares in an initial public offering (IPO) on the Nasdaq in October 2021, and B. Riley Securities, a branch of the capital market firm, operated as a combined book-running manager with Cowen.
In the midst of the market crisis, it appears that other mining companies with headquarters in North America have had financial challenges.
In July, Core Scientific and Bitfarms liquidated some of their Bitcoin assets, and on September 22, Compute North declared bankruptcy under Chapter 11.
Nonetheless, the deal to purchase Mawson’s Bitcoin mining operation for $33 million was signed in September by the cryptocurrency mining business CleanSpark.
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