IREN Limited Settles $20M Dispute with NYDIG Over Defaulted Bitcoin Mining Loans – A Turning Point in 2025

• How Did IREN Resolve Its $107.8 Million Loan Default with NYDIG?
• Why Is This Settlement Timed for IREN’s Best Quarter Ever?
• What’s Driving IREN’s Pivot Into AI Infrastructure?
• How Does This Compare to Other Crypto Debt Settlements?
• What’s Next for IREN’s Bitcoin Mining Operations?
• Investor Takeaways: Risks and Opportunities
• FAQ: IREN-NYDIG Settlement and Strategic Shift

In a landmark resolution, Nasdaq-listed bitcoin miner IREN Limited (formerly Iris Energy) has agreed to pay $20 million to NYDIG to settle a multi-year legal battle over $107.8 million in defaulted loans tied to 35,000 Antminer S19 rigs. The deal, finalized in August 2025, comes as IREN reports record quarterly revenue of $187.3 million and a strategic pivot into AI infrastructure, including a $168 million NVIDIA GPU purchase. This article breaks down the settlement’s implications, IREN’s financial rebound, and its dual-track strategy in crypto and AI.

How Did IREN Resolve Its $107.8 Million Loan Default with NYDIG?

After years of litigation, IREN Limited has closed a contentious chapter with NYDIG by agreeing to a $20 million settlement—$18.2 million of which exceeded prior reserves. The dispute originated from 2021 loans financing two special-purpose vehicles (IE CA3 and IE CA4) that defaulted in late 2022 due to unprofitable fixed-rate hosting contracts and hashrate leases during Bitcoin’s market downturn. Notably, the non-recourse structure of these loans shielded IREN’s core assets. "This clean resolution avoids the asset liquidations we’ve seen in similar crypto cases," noted a BTCC market analyst.

Why Is This Settlement Timed for IREN’s Best Quarter Ever?

The agreement coincides with IREN’s stellar Q2 2025 performance: $187.3 million revenue (up 226% YoY) and $176.9 million net profit. The company’s fiscal-year revenue hit $501 million, buoyed by Bitcoin’s price recovery and strategic GPU acquisitions. IREN’s stock surged post-announcement, reflecting investor confidence in its dual focus—scaling Bitcoin mining while expanding into AI infrastructure. As one trader quipped, "They’ve turned a debt crisis into a growth spurt."

Source: Google Finance

What’s Driving IREN’s Pivot Into AI Infrastructure?

IREN’s $168 million NVIDIA GPU purchase—1,200 air-cooled B300s and 1,200 liquid-cooled GB300s—expands its fleet to 10,900 units, including H100s and H200s. The GB300s will occupy a new 10MW liquid-cooled facility in Prince George, British Columbia. Financed through a 24-month lease (single-digit interest) and cash reserves, this move aligns with IREN’s "Preferred Partner" status with NVIDIA. "It’s a hedge against Bitcoin volatility," explains an industry insider. "Their Texas mining sites still generate cash flow, while AI offers long-term upside."

How Does This Compare to Other Crypto Debt Settlements?

Unlike Celsius or BlockFi’s bankruptcy restructurings, IREN’s out-of-court settlement preserves shareholder value. The $20 million payment represents just 18.6% of the original $107.8 million debt—a favorable outcome attributed to NYDIG’s limited recourse. Data from TradingView shows IREN’s market cap rebounded to $2.1 billion post-settlement, outperforming peers like Marathon Digital.

What’s Next for IREN’s Bitcoin Mining Operations?

Despite the AI push, IREN remains a top-tier Bitcoin miner, operating 8.4 EH/s as of June 2025. Its Texas facilities continue to leverage low-energy costs, though the company now diversifies revenue streams. "The Nvidia deal isn’t an exit from crypto," clarifies CEO Daniel Roberts. "It’s about stacking synergies—our data centers can toggle between mining and AI workloads."

Investor Takeaways: Risks and Opportunities

This article does not constitute investment advice. Key considerations:

• Debt Overhang Cleared: The settlement removes litigation risks but required $20 million in cash outflow.
• AI Bet: GPU investments could double IREN’s addressable market by 2026 (per JPMorgan estimates).
• Bitcoin Leverage: IREN’s 100% self-mining model avoids the pitfalls of hosted rigs that triggered its 2022 default.

FAQ: IREN-NYDIG Settlement and Strategic Shift

How much did IREN originally owe NYDIG?

IREN defaulted on $107.8 million in loans tied to 35,000 Antminer S19 rigs, settling for $20 million in August 2025.

What triggered IREN’s loan default in 2022?

Unprofitable fixed-rate hosting contracts and hashrate leases during Bitcoin’s bear market, compounded by energy price spikes.

Why did NYDIG accept such a steep discount?

The loans were non-recourse—NYDIG could only claim against the specific mining rigs collateralizing the debt, not IREN’s broader assets.

How does BTCC view IREN’s stock post-settlement?

BTCC analysts note IREN’s "unique positioning" but caution about execution risks in AI. The exchange lists IREN’s Nasdaq-traded shares (IREN) for crypto traders.