Bitcoin miner Greenidge signs $74 million debt restructuring deal with NYDIG

[ad_1]

According to a Dec. 20 filing with the U.S. Securities and Exchange Commission, Bitcoin (BTC) miner Greenidge has reached an agreement with its creditor, fintech firm NYDIG, to restructure approximately $74 million in debt. dollars. The agreement, in the form of a non-binding terms sheet, would entail a major shift in Greenidge’s current business strategy, essentially transforming Greenidge from self-operating to hosting NYDIG mining rigs.

Under the agreement, NYDIG would purchase miners with approximately 2.8 exahashes per second (EH/s) of mining capacity to be hosted by Greenidge, which would facilitate NYDIG’s rights to a mining site within three months of closing. debt restructuring and accommodation agreements. In exchange for consideration equivalent to the purchased miners and the transfer of mining infrastructure and credits to NYDIG, the company would agree to a debt reduction of $57-68 million for Greenidge.

Additionally, Greenidge would collateralize a significant portion of its unencumbered assets to secure the remaining balance of the NYDIG loan. The company would retain ownership of the 1.2 PE/s capacity miners. As of October 31, 2022, Greenidge had approximately 2.5 PE/s of mining capacity with approximately 24,500 miners in service.

However, the company also wrote that there remained uncertainty about Greenidges’ financial position and substantial doubt about its ability to continue in business. Last month, Greenidge used about $8 million of its cash during operations, of which $5.5 million went to paying principal and interest. As of November 30, 2022, the company’s cash balance was approximately $22 million. Greenidge also cautioned that NYDIG and Greenidge will endeavor to enter into definitive documentation reflecting the terms described in this release, but there can be no assurance that such terms will not materially change, nor can there be any assurance that the transactions discussed in this press release will be consummated.

In September 2021, Cointelegraph reported that Greenidge had completed a merger with Support.com, a provider of customer and technical support solutions, to become a Nasdaq-listed mining company. Since then, stocks have fallen more than 99%, in part due to a combination of the ongoing crypto winter, higher electricity prices, higher mining difficulties, and oil prices. lower market for bitcoin mining rigs.

[ad_2]