New York law firm Bragar Eagel & Squire has filed a class action lawsuit against mining company Iris Energy

01/09 07:59

New York law firm Bragar Eagel & Squire has filed a class action lawsuit against mining company Iris Energy, which claims to be the leading owner and operator of an institutional-grade, efficient, proprietary bitcoin mining data centre powered by 100% renewable energy. Iris' bitcoin mining business allegedly earns bitcoins through a combination of block rewards and transaction fees from the operation of dedicated computing equipment known as "miners" or "bitcoin miners", and converts these bitcoins into legal tender such as US dollars ("USD"). ("USD") or Canadian dollars ("CAD") on a daily basis. However, the fact is that the mining machines used to secure the loan are not capable of generating sufficient cash flow to repay the loan themselves, and the market value of the machines is well below the principal amount of the loan. As at the time of filing this complaint, the Iris share price is significantly below the issue price of $28 per share, to the detriment of investors. As previously reported, on December 12 last year, bitcoin miner Iris Energy shareholders launched a class action lawsuit against Iris Energy, with the complaint alleging violations of the Securities Act of 1933 and the Securities Act of 1934.
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