Bitcoin miner Greenidge cuts NYDIG debt from $72M to $17M

Bitcoin (BTC) mining firm Greenidge Technology Holdings has considerably decreased its debt with the funding administration agency New York Digital Funding Group (NYDIG).

On Jan. 30, Greenidge entered into a number of agreements related to its secured debt with NYDIG, transferring possession of Bitcoin mining {hardware} and sure credit to NYDIG. The transaction decreased the principal and accrued curiosity steadiness of debt with NYDIG from about $76 million to roughly $17 million, leading to complete combination debt discount of round $59 million.

One of many agreements, the senior secured mortgage settlement, additionally permits a chance for a voluntary prepayment of the mortgage by transferring possession of sure mining infrastructure belongings. Topic to a binding settlement by NYDIG, the mortgage settlement can probably scale back the principal steadiness of the debt to roughly $7 million.

As beforehand reported, Greenidge initially signed the deal in mid-December 2022, anticipating to cut back its NYDIG debt by a minimum of $57 million and as much as $68 million.

“The debt restructuring we’ve introduced at present considerably improves our steadiness sheet and gives us with a transparent path ahead as we enter 2023,“ Greenidge CEO Dave Anderson mentioned. The manager expressed confidence concerning the sturdy mining trade growth forward, stating:

“The completion of this debt restructuring, coupled with the execution of the brand new internet hosting agreements, has considerably improved our rapid liquidity and permits us to proceed taking part sooner or later upside potential of Bitcoin.”

Regardless of basically restructuring the corporate right into a internet hosting agency for Bitcoin mining rigs, Greenidge continues to personal about 10,000 miners, sustaining a capability of 1.1 exahashes per second (EH/s), the agency mentioned.

Amid a tricky cryptocurrency winter, many mining corporations have been shifting to lower their debt utilizing comparable methods. In late December 2022, Argo Blockchain decreased its complete debt by $41 million by promoting its flagship Helios mining facility and getting a $35 million mortgage from Mike Novogratz’s crypto funding agency Galaxy Digital.

Associated: Public Bitcoin mining firms plagued with $4B of collective debt

Along with the debt discount, Greenidge additionally launched preliminary monetary outcomes for the fourth quarter of 2022, reporting $15 million in revenues and as much as $130 million in losses. The agency produced roughly 683 BTC ($15.7 million) throughout This autumn 2022.

Greenidge additionally talked about the sale of its software program subsidiary on Jan. 17. The sale generated roughly $2.6 million internet proceeds.

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