Bitcoin miner Iris Energy has struck an equity purchase deal worth $100 million with investment banking firm B. Riley.
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The deal has a 24-month time frame, during which time B. Riley may purchase up to 25 million shares in the company, according to an SEC filing.
“We intend to use any proceeds from the Facility to fund our growth initiatives (including hardware purchases and acquisition and development of data center sites and facilities), and for working capital and general corporate purposes,” the miner said.
Core Scientific, another U.S.-based mining firm, struck a similar equity-focused deal with B. Riley in July. The moves come as mining firms face difficult conditions during the downturn. Some companies have moved to sell valuable assets, including bitcoin holdings, in order to generate working capital.
A recent asset acquisition deal by CleanSpark signaled that industry consolidation is also occurring in response to the current market conditions.
© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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