Australian Bitcoin mining agency Iris Power is the newest to endure from the squeeze of the crypto bear market, shedding a major chunk of its mining energy after defaulting on a mortgage.

A filing by the agency to the U.S. Securities and Trade Fee on Nov. 21 revealed that it has unplugged its {hardware} used as collateral in a $107.8 million mortgage as of Nov. 18.

The models “produce inadequate money circulation to service their respective debt financing obligations,” the agency famous. The operation generates round $2 million in Bitcoin gross revenue per thirty days however can’t cowl the $7 million in debt obligations.

Iris has now decreased its capability by round 3.6 EH/s (exahashes per second) of mining energy. It said that capability stays at round 2.4 EH/s which incorporates 1.1 EH/s of {hardware} in operation and 1.4 EH/s of rigs in transit or pending deployment.

The corporate said that its “information middle capability and growth pipeline are unaffected by the current occasions,” and it’ll proceed to discover alternatives to make the most of its capability. Iris can also be trying on the prospect of “using $75 million of prepayments already made to Bitmain in respect of a further 7.5 EH/s of contracted miners for additional self-mining.”

Earlier this month, the agency was served with a default notice for $103 million. Iris Power primarily operates Canadian BTC mining facilities that run on totally renewable power. In early August, the agency doubled its hash rate after energizing services in Canada.

Iris Power inventory (IREN) slumped 18% on the day to commerce at $1.65 in after-hours buying and selling. It hit an all-time low on Nov. 21, down 94% from its all-time excessive of $24.8 when it first traded in November 2021.

Associated: Bitcoin miners rethink business strategies to survive long-term

Bitcoin miners are at the moment struggling a triple whammy of excessive hash charges and issue, excessive power costs, and low Bitcoin costs.

That is inflicting plenty of them to both energy down their {hardware} or begin promoting the asset. On Nov. 21, Capriole Fund founder Charles Edwards noticed that the present charges of miner promoting had been probably the most aggressive in virtually seven years.

“If worth does not go up quickly, we’re going to see plenty of Bitcoin miners out of enterprise,” he added.

That worth enhance is unlikely to come back anytime quickly. Bitcoin slumped to a brand new bear cycle low of $15,649 in the course of the early hours of Asian buying and selling on Tuesday, Nov. 22, in response to CoinGecko.