Crypto bloodbath as Australian ‘green’ bitcoin miner’s share price suddenly plummets 95 percent – now the company once backed by Atlassian billionaire Mike Cannon-Brookes is in jeopardy
- Billionaire Mike Cannon-Brookes owed a stake in bitcoin mining company Iris Energy
- The share price has fallen 94 percent since listing on the Nasdaq just a year ago
- The US-listed Sydney-based company has defaulted on loans to purchase Bitcoin machines
Australian billionaire Mike Cannon-Brookes has been caught in a 94% price drop by a green cryptocurrency miner.
Iris Energy, which advertises itself as a sustainable bitcoin miner, was worth $28 when it went public on Nasdaq in November last year.
But it’s now down to just $1.68 a share because it can’t repay its debt financing Chinese equipment.
Mr. Cannon-Brookes, the co-founder of the workplace software company Atlassian, had owned interests in Iris Energy through his private investment company Grok Ventures.
The extremely wealthy climate change activist invested in the Sydney-based company, which markets its “100 percent renewable energy” to bitcoin mining – the process by which machines solve complex mathematical equations to create cryptocurrency.
Australian billionaire Mike Cannon-Brookes has been implicated in the 94% plunge of a cryptocurrency miner (pictured left with former US Vice President and climate change activist Al Gore and his wife Annie).
Iris Energy, founded by former Macquarie Group banker brothers Daniel Roberts and Will Roberts, plummeted 18 percent on Monday to hit a low of $1.55 a share after admitting American creditors 107, $8 million ($159 million requested) in loan repayments used to purchase cryptocurrency mining equipment.
Chinese company Bitmain Technologies makes the machines that Iris Energy uses to create bitcoin, but the Australian company owes money to New York Digital Investment Group (NYDIG), which funds those capital equipment.
Daniel Roberts, co-founder and chief executive officer of Iris Energy, told Nasdaq in a Nov. 2 update that the company “didn’t have enough cash flow to service debt financing obligations.”
“The limited recourse facility financing arrangements have been a focus for us lately,” he said.
‘We remain committed to finding a way to enable the lender to recover their capital investment, whilst also considering the current market and that these arrangements have been deliberately structured to minimize potential impacts on the broader group during an ongoing one.’ market downturn.’
Daniel Roberts had said that “restructuring talks are ongoing with the lender,” but later explained that Iris Energy’s subsidiaries would default on debt payments.
Daniel Roberts, co-founder and chief executive officer of Iris Energy (pictured right in Florida with employees), told Nasdaq in a May 2 update.
Iris Energy, which advertises itself as a sustainable bitcoin miner, was worth $28 when it went public on Nasdaq in November last year. But it’s now down to just $1.68 a share because it can’t repay its debt financing Chinese equipment
Iris Energy’s market capitalization has fallen 94 percent to $84.12 million from $1.4 billion when it was listed in November 2021.
Cryptocurrencies are in crisis after this month, FTX, one of the world’s largest cryptocurrency exchanges, collapsed, wiping out co-founder Sam Bankman-Fried’s entire $16 billion fortune.
As recently as August, Daniel Roberts was hinting that high inflation and government debt around the world were making cryptocurrencies a viable investment.
“Each year these early Bitcoiners are looking less crazy and increasingly forward-thinking,” he said.
Even before the recent cryptocurrency wipeouts, The Australian Financial Review estimated that Mr Cannon-Brookes’ personal wealth had fallen from $27.8 billion to $19.3 billion between May and June, just a month after he announced the annual ranked third on the AFR Rich List.
As recently as August, Daniel Roberts was hinting that high inflation and government debt around the world were making cryptocurrencies a viable investment