B. Riley Could Buy Up To $100M Stake In Bitcoin Miner Iris Energy

Australia-based crypto mining firm Iris Energy has signed an agreement with B. Riley.

According to a filing with the United States Securities and Exchange Commission on Friday, Iris Energy has signed an agreement with B. Riley Main Capital II related to the “potential offer and sale” of up to 25 million shares of the Bitcoin (BTC) mining company’s common stock. Worth $100 million. The registry B. Riley has a time limit of 24 months to complete the purchase “as soon as possible” after the effective date of the registration statement.

As Iris Energy qualifies as a “foreign private issuer” under US securities laws, the company said it intends to comply with Australian law and follow “most Nasdaq corporate governance listing standards”. The company is expected to purchase 198,174 shares for B. Riley “in consideration of an irrevocable commitment.”

According to an Iris Energy filing, the company plans to use the proceeds from the sale to fund growth initiatives, including purchasing mining hardware and developing data centers:

“As of the date of this prospectus, we cannot accurately describe all specific uses for any net proceeds we receive and the amounts we will allocate to those uses. Accordingly, we will have broad discretion in the manner in which we use such proceeds.”

The crypto mining company’s shares are listed on Nasdaq in November 2021 with a $200 million funding round. B. Riley Securities, an affiliate of the capital markets firm, also worked with Cowen for Stronghold Digital Mining’s plan to list approximately 6 million shares on Nasdaq in an October 2021 public offering.

Related: Maple Finance launches a $300 million loan pool for Bitcoin mining companies

Other mining companies in North America appear to have experienced financial difficulties in the market downturn. Core Scientific and BitFarms sold some of their BTC holdings in July, and Compute North filed for Chapter 11 bankruptcy on Thursday. However, crypto mining company CleanSpark struck a $33 million deal to buy Mawson Bitcoin Mining in September.