Bitcoin Miner Greenidge Enters Non-Binding Debt Restructuring Deal With NYDIG

The bitcoin mining cognition Greenidge Generation Holdings Inc. has executed a restructuring woody with NYDIG, according to an announcement published connected Tuesday. According to the non-binding word expanse agreement, NYDIG volition get 2.8 exahash per 2nd (EH/s) of Greenidge’s mining capacity, and Greenidge further entered into a hosting woody with NYDIG for the aforesaid 2.8 EH/s.

Greenidge Generation Enters Into a Deal With NYDIG, Board Is Actively Discussing the ‘Potential for, and Timing of, a Voluntary Bankruptcy Filing’

Bitcoin miners person been hammered by fiscal problems successful 2022 arsenic the terms of bitcoin (BTC) has dropped beneath the outgo of production, and the network’s mining trouble is precise high. Furthermore, a fig of interconnected bitcoin mining operations person been dealing with indebtedness defaults and bankruptcies that person caused a contagion wrong the mining industry. On Tuesday, the New York-based Greenidge Generation renegotiated a woody with NYDIG that concerns a indebtedness worthy $74 million.

Over the past six months, Greenidge (Nasdaq: GREE) shares person nosedived by 88.91% against the U.S. dollar. 35.58% has been mislaid during the past 30 days according to GREE/USD marketplace data. Greenidge says it “entered a non-binding word expanse with NYDIG” and NYDIG volition acquisition 2.8 EH/s of the company’s mining machines. Furthermore, the New York-based mining steadfast says it plans to participate into a hosting statement with NYDIG.

“Greenidge would participate into a hosting statement with NYDIG for astir 2.8 EH/s of mining capacity, which would effect successful a worldly alteration to Greenidge’s existent concern strategy and effect successful Greenidge mostly operating miners owned by NYDIG, alternatively than operating miners owned by Greenidge,” the institution elaborate connected Tuesday. In exchange, NYDIG has elaborate its plans to trim Greenidge’s $74 cardinal debt. Greenidge stated:

In speech for the purchased miners and transportation of mining infrastructure and credits to NYDIG, NYDIG would hold to a simplification of astir $57 to $68 cardinal of debt.

NYDIG has been a large backer erstwhile it comes to lending to bitcoin mining operations arsenic it has lent much than $300 cardinal to firms similar Stronghold, Greenidge, Argo Blockchain, Iris Energy, and Core Scientific. The loans were secured by the firms’ application-specific integrated circuit (ASIC) mining machines.

In summation to the restructuring update connected Tuesday, Greenidge besides filed documentation with the U.S. Securities and Exchange Commission (SEC) that notes Greenidge execs are successful progressive discussions astir the imaginable for, and timing of, a voluntary bankruptcy filing.”

The bitcoin mining cognition says that bankruptcy could hap if Greenidge discovers it does not person disposable liquidity, its remaining superior depletes and cannot fulfill indebtedness obligations, oregon if Greenidge defaults connected immoderate debts oregon contracts.

What bash you deliberation astir Greenidge’s restructuring woody with NYDIG? Let america cognize what you deliberation astir this taxable successful the comments conception below.

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