Business
Limited recourse equipment financing update
SYDNEY, Australia, Aug. 11, 2023 (GLOBE NEWSWIRE) -- Iris Energy Limited (NASDAQ: IREN) (“Iris Energy” or “the Company”), a leading owner and operator of
About this update from Iren Limited
[{"type":"text","content":"SYDNEY, Australia, Aug. 11, 2023 (GLOBE NEWSWIRE) -- Iris Energy Limited (NASDAQ: IREN) (“Iris Energy” or “the Company”), a leading owner and operator of institutional-grade, highly efficient Bitcoin mining data centers powered by 100% renewable energy, today provided an update to the legal proceedings related to its limited recourse equipment financing arrangements. As previously disclosed by the Company, a hearing was held in June 2023 in The Supreme Court of British Columbia (the “Court”) in relation to limited recourse equipment financing facilities entered into by two wholly owned special purpose vehicle borrowers (the “Non-Recourse SPVs”). Today the Court issued its ruling affirming the Company’s position that, among other things, the Bitcoin mined by the Company is not collateral securing such facilities and there is no parent guarantee with respect to the equipment financing facilities, and no relief in respect of substantive consolidation was granted. However, the Court declared transactions pursuant to hashpower services provided by the Non-Recourse SPVs to the Company to be void (the Court noted that based on the submissions to date, the discrepancy between the value that the Company received for the hashpower and the consideration paid to the Non-Recourse SPVs is between $3 million and $11.9 million1). The Company is considering whether to appeal this declaration as it disagrees with this decision including certain factual findings. A full copy of the decision is available from the Court’s registry. Legal proceedings are subject to many uncertainties and the Company can provide no assurances as to outcomes. About Iris Energy Iris Energy is a sustainable Bitcoin mining company that supports the decarbonization of energy markets and the global Bitcoin network. 100% renewables: Iris Energy targets markets with low-cost, under-utilized renewable energy, and where the Company can support local communitiesLong-term security over infrastructure, land and power supply: Iris Energy builds, owns and operates its electrical infrastructure and proprietary data centers, providing long-term security and operational control over its assetsSeasoned management team: Iris Energy’s team has an impressive track record of success across energy, infrastructure, renewables, finance, digital assets and data centers with cumulative experienc...