Bitcoin miner Greenidge cuts NYDIG debt from $72M to $17M

Bitcoin (BTC) mining institution Greenidge Generation has importantly reduced its indebtedness with the concern absorption firm, New York Digital Investment Group (NYDIG).

On Jan. 30, Greenidge entered into respective agreements associated with its secured indebtedness with NYDIG, transferring ownership of Bitcoin mining hardware and definite credits to NYDIG. The transaction reduced the main and accrued involvement equilibrium of indebtedness with NYDIG from astir $76 cardinal to astir $17 million, resulting successful full aggregate indebtedness simplification of astir $59 million.

One of the agreements, the elder secured indebtedness agreement, besides enables an accidental for a voluntary prepayment of the indebtedness by transferring ownership of definite mining infrastructure assets. Subject to a binding statement by NYDIG, the indebtedness statement tin perchance trim the main equilibrium of the indebtedness to astir $7 million.

As antecedently reported, Greenidge primitively signed the deal successful mid-December, expecting to trim NYDIG indebtedness by astatine slightest $57 cardinal and up to $68 million.

“The indebtedness restructuring we’ve announced contiguous importantly improves our equilibrium expanse and provides america with a wide way guardant arsenic we participate 2023," Greenidge CEO Dave Anderson said. The exec expressed assurance astir the beardown mining manufacture improvement ahead, stating:

“The completion of this indebtedness restructuring, coupled with the execution of the caller hosting agreements, has importantly improved our contiguous liquidity and allows america to proceed participating successful the aboriginal upside imaginable of Bitcoin.”

Despite fundamentally restructuring the institution into a hosting steadfast for Bitcoin mining rigs, Greenidge inactive continues to ain astir 10,000 miners, maintaining a capableness of 1.1 exahashes per 2nd (EH/s), the steadfast said.

Amid a pugnacious cryptocurrency winter, galore mining firms person been moving to alteration their indebtedness utilizing akin strategies. In precocious December, Argo Blockchain reduced its full indebtedness by $41 million by selling its flagship Helios mining installation and getting a $35 cardinal indebtedness from Mike Novogratz’s crypto concern steadfast Galaxy Digital.

Related: Public Bitcoin mining companies plagued with $4B of corporate debt

In summation to the indebtedness reduction, Greenidge besides released preliminary fiscal results for the 4th fourth of 2022, reporting $15 cardinal successful revenues and up to $130 cardinal successful losses. The steadfast produced astir 683 BTC ($15.7 million) during Q4 2022.

Greenidge besides mentioned the merchantability of its bundle subsidiary Support.com connected Jan. 17. The merchantability generated nett proceeds of astir $2.6 million.