Iris Energy Limited (NASDAQ:IREN) issued an update regarding the legal proceedings related to its limited recourse equipment financing arrangements.
The Supreme Court of British Columbia issued a decision that reaffirms Iris Energy’s position that the bitcoin it mines is not considered collateral in securing equipment financing facilities.
However, the Court also declared transactions pursuant to hashpower services provided by the non-recourse special purpose vehicle borrowers to be void. The Court found that the discrepancy between the value Iris Energy received for the hashpower and the consideration paid to the non-recourse SPVs is between $3 million and $11.9 million.
Going forward, Iris Energy is considering whether to appeal this declaration as it disagrees with this decision including certain factual findings.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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