B. Riley signed a deal with Core Scientific in July that was very similar to this one that they just signed with crypto mining giants Iris energy.
Bitcoin miner Iris Energy (IREN) signed a deal to sell up to $100 million in equity to investment bank B. Riley over the next two years. This is the bank’s second big investment in an industry that is facing tough market conditions.
In July, B. Riley made a deal with Core Scientific (CORZ), the largest bitcoin miner in the world based on actual hashrate, that was similar to the one he made in June.
This year, the price of bitcoin has dropped by as much as 60%, and energy costs have gone up. This has caused the stock prices of bitcoin miners that are traded on the stock market to fall.
A filing with the U.S. Securities and Exchanges Commission says that B. Riley may buy up to 25 million ordinary shares of IREN in the next 24 months, starting on Friday. The filing said that if the bank bought all of those shores for about $100 million, it would own 31% of the miner.
As payment for B. Riley’s promise, Iris Energy gave him 198,174 ordinary shares, which are included in the total.
Iris stock was down almost 12% when trading started on Friday.
