Greenidge Generation Holdings Inc. has carried out the bitcoin mining operation. restructuring deal with NYDIG, according to an announcement made Tuesday. According to the non-binding term sheet agreement, NYDIG will receive 2.8 exahashes per second (EH/s) of Greenidge’s mining capacity, and Greenidge has also entered into a hosting deal with NYDIG for the same 2.8 EH/s.
Jill Greenidge Enters Deal With NYDIG, Board Actively Discusses “Possibility And Timing To File For Voluntary Bankruptcy”
Bitcoin miners have been hurt by financial troubles in 2022 as is the price of bitcoin (BTC) to less than the production cost, and the network mining difficulty is very high. Furthermore, a number of interconnected bitcoin mining operations have been dealing with loan defaults and bankruptcies which has caused contagion within the mining industry. On Tuesday, New York-based Greenidge Generation renegotiated a deal with NYDIG related to a $74 million loan.
Over the past six months, Greenidge (NASDAQ: he ranShares fell 88.91% against the US dollar. It lost 35.58% over the past 30 days according to GREE/USD market data. Greenidge says it has “entered into a non-binding sheet of terms with NYDIG” and will buy NYDIG 2.8 EH/s of the company’s miners. Moreover, the New York-based miner says it plans to enter into a hosting agreement with NYDIG.
“Greenidge will enter into a hosting agreement with NYDIG for approximately 2.8 EH/s of mining capacity, which will fundamentally change Greenidge’s current business strategy and result in Greenidge operating miners largely owned by NYDIG, rather than operating miners owned by Greenidge, the company detailed Tuesday.In contrast, NYDIG detailed its plans to reduce Greenidge’s $74 million debt.Greenidge stated:
In exchange for purchasing the miners and transferring the mining infrastructure and credits to NYDIG, NYDIG will agree to reduce approximately $57 to $68 million in debt.
NYDIG has been very supportive when it comes to lending to bitcoin mining operations as it has loaned more than $300 million to companies like Stronghold, Greenidge, Argo Blockchain, Iris Energy, and Core Scientific. The loans were secured by the companies Application Specific Integrated Circuit (ASIC) miners.
In addition to Tuesday’s restructuring update, Greenidge also provided documentation With the US Securities and Exchange Commission (SEC) indicating that Greenidge executives are in active discussions about the possibility and timing of filing for voluntary bankruptcy.”
The bitcoin mining operation says bankruptcy could occur if Greenidge finds it has no available cash, its remaining capital dries up and it cannot meet debt obligations, or if Greenidge defaults on any debts or contracts.
What do you think of Greenidge’s restructuring deal with NYDIG? Tell us what you think about it in the comments section below.
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