Australian crypto mining company Iris Energy has signed an agreement with B. Riley giving the capital market company the opportunity to purchase up to 25 million of its shares.
According to a filing Friday with the U.S. Securities and Exchange Commission, Iris Energy has signed an agreement with B. Riley Principal Capital II regarding a “potential offer and sale” of up to 25 million shares of the bitcoin (BTC) mining company. , worth $100 million. The filing states that B. Riley has a 24-month deadline to complete the purchase, beginning “as soon as possible” after the effective date of the registration application.
Because Iris Energy qualifies as a “foreign private issuer” under US securities laws, the firm said it intends to follow “most Nasdaq corporate governance listing standards” as well as comply with Australian law. The company was already considering issuing 198,174 B. Riley shares “in compensation for its irrevocable undertaking” to purchase more shares.
According to a statement from Iris Energy, the company planned to use the proceeds from the sale to fund growth initiatives, including the purchase of mining equipment and the development of data centers:
“As of the date of this prospectus, we are unable to indicate with certainty all specific uses and the corresponding amounts that we can allocate to those uses for any net revenues we receive. Accordingly, we will have wide discretion in how we use these revenues.”
The cryptocurrency mining company was listed on the Nasdaq in November 2021 following a $200 million funding round. B. Riley Securities, a capital markets subsidiary, also acted as joint accounting manager with Cowen for Stronghold Digital Mining’s plan to float approximately 6 million shares on the Nasdaq in an October 2021 initial public offering.
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Other mining companies based in North America appear to be struggling financially amid the market downturn. Core Scientific and Bitfarms sold some of their BTC assets in July, and Compute North filed for Chapter 11 bankruptcy on Thursday. However, in September, crypto mining company CleanSpark signed a $33 million deal to buy Mawson’s bitcoin mining operation.