March 29, 2024

Greenidge Generation reaches debt restructuring deal with NYDIG

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Greenidge Generation reaches debt restructuring deal with NYDIG

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

As part of the first phase of the GREE agreementsigned a non-binding deal to sell most of its mining equipment. The next stage of the restructuring involves entering into a hosting agreement with NYDIG. Thus, Greenidge is changing its business strategy from a self-mining company to a hosting service provider. In addition, GREE will transfer assets, including infrastructure and share capital of its subsidiaries, to the lender's management.

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

Greenidge does not hide that if in the comingIf you fail to find additional financing to cover operating costs for two or three months, then bankruptcy will be the only way out of the problem situation.

Earlier it became known that another one ofThe largest public cryptocurrency mining company in the United States, Core Scientific, plans to file for protection from creditors in Texas bankruptcy court.