ris Energy, based in Australia, has signed an agreement with B. Riley allowing the capital market company to purchase up to 25 million of its shares.

According to a filing with the US Securities and Exchange Commission on Friday, Iris Energy has reached an agreement with B. Riley Principal Capital II was involved in a "potential offer and sale" of up to 25 million ordinary shares of the Bitcoin (BTC) mining firm worth $100 million. According to the documentation, B. Riley has a 24-month time frame to complete the purchase, beginning "as soon as practicable" after the registration statement's effective date.

Iris Energy stated that it intends to follow "most Nasdaq corporate governance listing standards" while also adhering to Australian law because it qualifies as a "foreign private issuer" under US securities laws. The company had already planned to issue B 198,174 shares to B. Riley "in exchange for its irrevocable commitment" to buy more shares.

According to the filing, Iris Energy intended to use the proceeds from the sale to fund growth initiatives such as purchasing mining hardware and developing data centers:

“As of the date of this prospectus, we cannot specify with certainty all of the particular uses, and the respective amounts we may allocate to those uses, for any net proceeds we receive. Accordingly, we will have broad discretion in the way we use these proceeds.”

Following a $200 million funding round, the crypto mining company's shares were listed on Nasdaq in November 2021. B. Riley Securities, the capital market firm's affiliate, also served as a joint book-running manager with Cowen for Stronghold Digital Mining's plan to list approximately 6 million shares on the Nasdaq in October 2021.

Other North American mining companies appear to have faced financial difficulties as a result of the market downturn. Core Scientific and Bitfarms sold some of their Bitcoin holdings in July, and Compute North declared bankruptcy on Thursday. However, in September, crypto mining firm CleanSpark agreed to purchase Mawson's Bitcoin mining facility for $33 million.

Sep 24, 2022
Crypto News

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