Mining company Iris Energy sets a hard cap for IPO over $223M

by in Cryptocurrency News

Iris Energy

Australian mining company Iris Energy plans to raise approximately $223.3 million during its initial public offering (IPO).

In an earlier-filed form, Iris Energy indicated an expected IPO volume of $100 million.

According to the revised prospectus, the company will offer 8,269,231 common shares, expecting a placement price of $25 to $27 per share.

Iris Energy expects that trading in securities under the ticker symbol IREN will start on the Nasdaq by the end of 2021.

The underwriters for the company's IPO are JP Morgan, Canaccord Genuity, and Citigroup. The firm offered them an option to purchase an additional 1,240,384 shares at the offering price.

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The company will use the funds raised during the IPO to expand the business, including financing the construction and development of data centers, as well as purchasing equipment for bitcoin mining.

The company plans to bring its hashrate to 15.2 EH / s by September 2023, thanks to a long-term agreement with Bitmain on the supply of miners.

The firm has owned a mining center in the Canadian province of British Columbia since January 2020. The company uses 98% of environmentally-friendly hydropower. As of October 1, 2021, it had a capacity of 30 MW and generated a hash rate of about 0.7 EH / s.

The data center in Canada became the first foreign enterprise of Iris Energy, which has been engaged in mining since 2019. The company plans to expand its operations in regions with cheap green electricity and has agreements to purchase several sites in British Columbia, Texas (USA), and the Asia-Pacific region.

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For the third quarter of 2021, adjusted profit before taxes, interest, depreciation, and amortization of the Iris Energy manager was $ 6 million against the same period last year of $ 0.02 million.

The firm sold all of the mined bitcoins and had no cryptocurrency reserves at the end of September.