Under the agreement, creditor NYDIG agrees to relieve a portion of Greenidge's loans if it can provide a facility to host the firm's BTC mining rigs.
with the U.S. Securities and Exchange Commission on Dec. 20, Bitcoin miner Greenidge stated that it reached an agreement with its creditor, fintech firm NYDIG, to restructure approximately $74 million worth of debt. The deal, in the form of a non-binding term sheet, would result in a major change to Greenidge's current business strategy. Essentially, it would transform Greenidge from self-mining to hosting for NYDIG's mining rigs.
Under the conditions, NYDIG would purchase miners with approximately 2.8 exahash per second of mining capacity to be hosted by Greenidge, which will facilitate NYDIG rights to a mining site within three months following the completion of debt restructuring and hosting agreements. In exchange for consideration amounting to the purchased miners and transfer of mining infrastructure and credits to NYDIG, the firm would agree to a $57 million to $68 million debt reduction for Greenidge.
Additionally, Greenidge will be collateralizing a sizable portion of its unencumbered assets to secure the remaining balance of the NYDIG loan. The firm would retain ownership of miners with a capacity of 1.2 EH/s. As of October 31, 2022, Greenidge had approximately 2.5 EH/s of mining capacity from approximately 24,500 miners in service.
However, the company also wrote that"there remains uncertainty regarding Greenidge's financial condition and substantial doubt about its ability to continue as a going concern." Last month, Greenidge used approximately $8 million of its cash during operations, of which $5.5 million went to principal and interest payments. As of November 30, 2022, the company's cash balance amounted to approximately $22.0 million.
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bitcoin Miner Greenidge Reaches Debt Restructuring Deal With NYDIG as Bankruptcy LoomsBitcoin miner Greenidge_GREE reaches debt restructuring deal with NYDIG even as bankruptcy remains an option. By egreechee
Read more »
Bitcoin (BTC) Price Analysis for December 18Can the fall of BTC continue to $16,000 next week? NickSzabo4 alistairmilne Maybemore_DC WhalePanda maxkeiser
Read more »
BTC price faces 20% drop in weeks if Bitcoin avoids key level — AnalystBitcoin lurks below $17,000 as BTC price traders target shorts and lows.
Read more »
Crowdfunding gets leg up from Lightning Addresses on BitcoinA new type of Bitcoin address called 'Lightning Address' has been introduced to the Bitcoin community.
Read more »
Commodity Analyst Mike McGlone Suggests 'Bitcoin Appears Poised to Resume Its Inclination to Outperform' – Bitcoin NewsBloomberg Intelligence senior commodity analyst, Mike McGlone, believes a “warm spell” is coming in terms of bitcoin markets.
Read more »
Bitcoin mining report: Most miners tracked Bitcoin lowerHere's how crypto mining companies performed on Monday, Dec. 19.
Read more »