Bitcoin miner Greenidge Generation signs $74M debt restructuring agreement with NYDIG

According to a new filing with the U.S. Securities and Exchange Commission connected Dec. 20, Bitcoin (BTC) miner Greenidge stated that it reached an statement with its creditor, fintech steadfast NYDIG, to restructure astir $74 cardinal worthy of debt. The deal, successful the signifier of a non-binding word sheet, would effect successful a large alteration to Greenidge's existent concern strategy. Essentially, it would alteration Greenidge from self-mining to hosting for NYDIG's mining rigs. 

Under the conditions, NYDIG would acquisition miners with astir 2.8 exahash per 2nd (EH/s) of mining capableness to beryllium hosted by Greenidge, which volition facilitate NYDIG rights to a mining tract wrong 3 months pursuing the completion of indebtedness restructuring and hosting agreements. In speech for information amounting to the purchased miners and transportation of mining infrastructure and credits to NYDIG, the steadfast would hold to a $57 cardinal to $68 cardinal indebtedness simplification for Greenidge.

Additionally, Greenidge volition beryllium collateralizing a sizable information of its unencumbered assets to unafraid the remaining equilibrium of the NYDIG loan. The steadfast would clasp ownership of miners with a capableness of 1.2 EH/s. As of October 31, 2022, Greenidge had astir 2.5 EH/s of mining capableness from astir 24,500 miners successful service.

However, the institution besides wrote that "there remains uncertainty regarding Greenidge's fiscal information and important uncertainty astir its quality to proceed arsenic a going concern." Last month, Greenidge utilized astir $8 cardinal of its currency during operations, of which $5.5 cardinal went to main and involvement payments. As of November 30, 2022, the company's currency equilibrium amounted to astir $22.0 million. Greenidge besides warned that "NYDIG and Greenidge volition endeavor to participate into definitive documentation reflecting the presumption described successful this release, but determination tin beryllium nary assurances made that specified presumption volition not alteration materially nor tin determination beryllium immoderate assurances made that the transactions discussed successful this merchandise volition beryllium consummated."

Last September, Cointelegraph reported that Greenidge completed a merger with lawsuit and method enactment solutions supplier Support.com to go a publically listed mining steadfast connected the NASDAQ. Since then, shares person plunged implicit 99%, partially owed to a operation of the ongoing crypto winter, higher energy prices, higher mining difficulty, and little marketplace prices for Bitcoin mining rigs.