Australian cryptocurrency mining company Iris Energy has signed an agreement with B. Riley that gives the capital market firm the option to purchase up to 25 million of its shares.
According to a document filed Friday with the United States Securities and Exchange Commission, Iris Energy has entered into an agreement with B. Riley Principal Capital II regarding the “potential offer and sale” of up to 25 million common shares of the Bitcoin (BTC) mining company, worth $100 million. The filing indicates that B. Riley has 24 months to complete the purchase, beginning “as soon as possible” after the effective date of the registration statement.
Because Iris Energy is classified as a “foreign private issuer” under US securities laws, the company said it intended to follow “most of the Nasdaq corporate governance listing standards” by while adhering to 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 the Iris Energy presentation, the company planned to use the proceeds from the sale to finance growth initiatives, such as the purchase of mining equipment and the development of data centers:
“As of the date of this prospectus, we cannot specify with certainty all the particular uses, and the respective amounts that we may allocate to those uses, for any net income we receive. Accordingly, we will have broad discretion in how we use this income. “.
Shares of the cryptocurrency mining company debuted on the Nasdaq in November 2021 following a $200 million funding round. B. Riley Securities, a subsidiary of the capital markets firm, also acted as joint manager with Cowen for Stronghold Digital Mining’s plan to list some 6 million shares on the Nasdaq in an initial public offering in October 2021.
Other North American-based mining companies appear to have experienced financial difficulties amid the market downturn. Core Scientific and Bitfarms sold some of their BTC holdings in July, and Compute North filed for bankruptcy on Thursday. However, cryptocurrency mining company CleanSpark signed a $33 million deal to purchase Mawson’s Bitcoin mining facility in September.
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