Cryptocurrency-based Iris Energy collaborates with B Riley for stake purchase

Australian-based cryptocurrency mining firm Iris Energy has signed a deal with B Riley, with the aim to give the capital market company right to purchase up to 25 million of its shares, as reported by Cointelegraph. 

According to Cointelegraph, a filing by the United States Securities and Exchange Commission stated that the companies filed an agreement relate to the potential sale and transfer of up to 25 million of the Bitcoin (BTC) mining firm’s ordinary share having a value of $100 million. The filing mentioned that B Riley will have a 24-month time frame to complete the purchase post date of registration statement. 

On the basis of information by Cointelegraph, under US securities alws, Iris Energy is qualified as a foreign private issuer and aims to follow Nasdaq corporate governance listing standards while also following the Australian law. It is expected that the company will issue 198,174 shares to B Riley. 

“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 discretion in the way we use these proceeds,” Iris Energy’s filing stated.

Moreover, Cointelegraph noted that the cryptocurrency mining company’s shares were listed on Nasdaq in November, 2021, post a $200 million worth funding round. B Riley Securities, an affiliate of the capital market firm, also played the role of a joint book running manager with Cowen for Stronghold Digital Mining’s plan to list close to six million shares on the Nasdaq, through an initial public offering in October, 2021. Reportedly, other North America-based mining companies faced financial difficulties during the market downturn. Core Scientific and Bitfarms held sales of their BTC holdings in July, and Compute North filed for Chapter 11 bankruptcy recently.

(With insights from Cointelegraph)

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