Australia-based crypto mining company Iris Energy has signed a deal with B. Riley, giving the capital market company the option to buy up to 25 million of its shares.
According to a Friday filing with the United States Securities and Exchange Commission, Iris Energy has signed an agreement with B. Riley Principal Capital II regarding the “potential offering and sale” of up to 25 million common shares of the Bitcoin (BTC) mining company. , worth $100 million. The filing states that B. Riley has a 24-month time frame to complete the purchase, commencing “as soon as possible” after the effective date of the registration statement.
Because Iris Energy qualifies as a “foreign private issuer” under US securities laws, the company said it intends to “follow most Nasdaq corporate governance listing standards” while also complying with Australian law. The company already expected to issue 198,174 shares to B. Riley “in return for his irrevocable commitment” to buy more shares.
According to Iris Energy’s filing, the company planned to use the proceeds from the sale to fund growth initiatives, including the purchase of mining hardware and data center development:
“As of the date of this prospectus, we cannot specify with certainty all specific uses, and the respective amounts that we may allocate to those uses, for each net proceeds we receive. Accordingly, we will have wide discretion in how we use these proceeds.”
Shares of the crypto mining company were listed on Nasdaq in November 2021 after a $200 million round of financing. B. Riley Securities, a subsidiary of the capital markets firm, also acted as a joint book-running manager with Cowen for Stronghold Digital Mining’s plan to list approximately 6 million shares on the Nasdaq in an IPO in October 2021.
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Other mining companies in North America appear to have experienced financial difficulties during the market downturn. Core Scientific and Bitfarms sold some of their BTC shares in July, and Compute North filed for Chapter 11 bankruptcy on Thursday. However, crypto mining company CleanSpark signed a $33 million deal to buy Mawson’s Bitcoin mining facility in September.