September 21, 2023

Greenidge Generation reaches debt restructuring deal with NYDIG

Article reading time:
1 min.

Greenidge Generation reaches debt restructuring deal with NYDIG

Mining company Greenidge Generation (GREE) has reached an agreement with its creditor NYDIG to restructure a $74 million debt.

As part of the first phase of the agreement, GREE signedan optional deal to sell most of their mining hardware. The next stage of the restructuring involves the conclusion of a hosting agreement with NYDIG. Thus, Greenidge is changing its business strategy from self-mining to a hosted service provider. In addition, GREE will transfer assets, including infrastructure and equity capital of its subsidiaries, to the lender.

Like many other companies in the cryptocurrencyindustry, Greenidge is struggling with a lack of liquidity and is seeking to raise additional capital. GREE spends between $5 million and $8 million a month to service its debt and maintain its operations, while the company's total cash and cash equivalents slightly exceed $20 million.

Greenidge does not hide that if in the comingtwo or three months it will not be possible to find additional funding to cover operating costs, then bankruptcy will become the only way out of the problem situation.

Earlier it became known that another of the largestU.S. public cryptocurrency mining companies Core Scientific plans to file for creditor protection in the Texas Bankruptcy Court.