Miner Iris Energy notified the regulator about the default of subsidiaries

A major cryptocurrency miner has told the U.S. Securities and Exchange Commission (SEC) that two subsidiaries are unable to meet $103 million in liabilities.

Two divisions of Iris Energy, acquiring equipment on the security, faced debts on loans for $32 million (secured by equipment with a total hash rate of 1.6 EH/s) and $71 million (1.6 EH/s). According to representatives of the miner, the lender believes that the company is unable to continue "good faith discussions of debt restructuring."

The mining company drew the attention of the regulator that it earns $2 million every month from mining digital assets, while monthly loan payments amount to $7 million. The next payment is due on November 8. 

Iris Energy warned the regulator that if the creditor does not agree to a debt restructuring, the company will not be able to fulfill its obligations. As a result, the miner is likely to lose the equipment that is pledged and will not be able to mine cryptocurrency in order to pay off the debt.

Iris Energy owes another $1 million to other lenders. The loan is secured by ASIC miners with an aggregate hashrate of 0.2 EH/s. The company said that it has a reserve of $53 million, and a fleet of equipment not pledged to creditors provides a hash rate of 2.4 ECH / s.

A number of divisions of Iris Energy have already stopped interacting with companies that received notification from the lender. Iris Energy is now exploring the possibility of selling the equipment or renting out the vacant space to other miners.

In March, Iris Energy announced plans to purchase new equipment for $71 million. The funds were provided by a subsidiary of the American company NYDIG. Iris Energy used its current equipment to secure the loan.