Greenidge, a bitcoin miner, reduces NYDIG’s debt from $72 million to $17 million.
Despite restructuring into a hosting firm for Bitcoin mining, Greenidge still owns about 10,000 miners, maintaining a capacity of 1.1 EH/s.
The debt that Greenidge Generation Holdings, a bitcoin mining company, owes New York Digital Investment Group has been drastically decreased (NYDIG).
On January 30, Greenidge and NYDIG engaged into a number of agreements related to their secured debt, under which Greenidge gave NYDIG ownership of certain credits and Bitcoin mining equipment. The transaction resulted in a total aggregate debt reduction of about $59 million by lowering the principal and accrued interest balance of the loan with NYDIG from about $76 million to about $17 million.
The senior secured loan agreement, one of the agreements, also provides a way for a loan to be voluntarily prepaid by transferring ownership of specific mining infrastructure assets. The financing deal may reduce the main balance of the debt to around $7 million, subject to a definitive agreement by NYDIG.
As was previously said, Greenidge entered the agreement at the beginning of December 2022 with the intention of lowering its NYDIG debt by at least $57 million and maybe as much as $68 million.
Greenidge CEO Dave Anderson stated that the debt restructure “substantially improves our balance sheet and gives us a clear path forward as we enter 2023.” The executive voiced optimism for the mining industry’s future growth, saying:
“The completion of this debt restructuring, coupled with the execution of the new hosting agreements, has significantly improved our immediate liquidity and allows us to continue participating in the future upside potential of Bitcoin.”
Greenidge continues to possess roughly 10,000 miners, retaining a capacity of 1.1 exahashes per second (EH/s), the company says, while basically turning the business into a hosting company for Bitcoin mining rigs.
Many mining companies have been utilising same tactics to reduce their debt amid a challenging bitcoin winter. By selling its flagship Helios mining plant and obtaining a $35 million loan from Mike Novogratz’s cryptocurrency investment company Galaxy Digital in late December 2022, Argo Blockchain was able to reduce its overall debt by $41 million.
Greenidge also disclosed its early financial figures for the fourth quarter of 2022, which showed $15 million in revenues and losses of up to $130 million. In addition to the debt reduction. During Q4 2022, the company generated about 683 BTC ($15.7 million).
Greenidge also mentioned the sale of its software subsidiary Support.com on Jan. 17. The sale generated approximately $2.6 million net proceeds.