Finger Lakes Bitcoin miner faces financial difficulties

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The Greenidge Generations facility along Seneca Lake in Yates County has been the focus of opposition from environmental activists concerned about the industry’s potential to negatively impact the state’s climate goals. Earlier this year, the Department of Environmental Protection denied Greenidges’ request to renew the air pollution permits needed to continue operating the Yates County facility, despite the plant being licensed to continue to operate during the appeal process.

Greenidge Generation, the cryptocurrency mining company that has spurred environmental opposition in the Finger Lakes in recent years, is trying to restructure debt amid financial difficulties.

Earlier this week, the company announced that it had signed a term sheet with one of its lenders, NYDIG, in a bid to restructure millions of dollars in debt.

Under the potential deal, Greenidge would cede more than half of its cryptocurrency generation capacity to NYDIG in exchange for reducing its debt to the lender from $57 million to $68 million.

Greenidge’s announcement painted a gloomy outlook for the financial situation of publicly traded companies, even if the debt restructuring agreement would be reached.

There is no certainty that any individual source of liquidity described above will be sufficient to meet the liquidity needs of the Company; and, even if all the potential sources of liquidity described above are available, they may not be sufficient to meet the Company’s liquidity needs, which also depend on the volatility of bitcoin and natural gas prices. If the Company were unable to complete any further financing, the Company would continue to experience negative cash flow and would have to scale back or cease operations, the company’s announcement states in part.

Cryptocurrency mining operations have been severely impacted by rising natural gas prices and falling Bitcoin prices.

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