According to a brand new submitting with the U.S. Securities and Exchange Commission on Dec. 20, Bitcoin (BTC) miner Greenidge said that it reached an agreement with its creditor, fintech agency NYDIG, to restructure roughly $74 million price of debt. The deal, within the type of a non-binding time period sheet, would end in a serious change to Greenidge’s present enterprise technique. Essentially, it could remodel Greenidge from self-mining to internet hosting for NYDIG’s mining rigs.Β 

Under the situations, NYDIG would buy miners with roughly 2.8 exahash per second (EH/s) of mining capability to be hosted by Greenidge, which can facilitate NYDIG rights to a mining website inside three months following the completion of debt restructuring and internet hosting agreements. In trade for consideration amounting to the bought miners and switch of mining infrastructure and credit to NYDIG, the agency would comply with a $57 million to $68 million debt discount for Greenidge.

Additionally, Greenidge will probably be collateralizing a large portion of its unencumbered property to safe the remaining steadiness of the NYDIG mortgage. The agency would retain possession of miners with a capability of 1.2 EH/s. As of October 31, 2022, Greenidge had roughly 2.5 EH/s of mining capability from roughly 24,500 miners in service.

However, the corporate additionally wrote that “there remains uncertainty regarding Greenidge’s financial condition and substantial doubt about its ability to continue as a going concern.” Last month, Greenidge used roughly $8 million of its money throughout operations, of which $5.5 million went to principal and curiosity funds. As of November 30, 2022, the corporate’s money steadiness amounted to roughly $22.0 million. Greenidge additionally warned that “NYDIG and Greenidge will endeavor to enter into definitive documentation reflecting the terms described in this release, but there can be no assurances made that such terms will not change materially nor can there be any assurances made that the transactions discussed in this release will be consummated.”

Last September, Cointelegraph reported that Greenidge accomplished a merger with buyer and technical help options supplier to turn into a publicly listed mining agency on the NASDAQ. Since then, shares have plunged over 99%, partly attributable to a mix of the continuing crypto winter, greater electrical energy costs, greater mining problem, and decrease market costs for Bitcoin mining rigs.Β 


Please enter your comment!
Please enter your name here