The mining company Greenidge Generation has reached agreements with B. Riley and NYDIG on debt restructuring, reducing it from about $87 million to around $26 million.
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Greenidge Generation Restructures and Significantly Reduces Secured Debt $GREEhttps://t.co/GNPtKKCtLm
— Greenidge Generation Holdings Inc (@Greenidge_GREE) January 31, 2023
As part of the deal with NYDIG, the firm transferred mining equipment to the creditor, with a total hashrate of 2.8 EH/s and the existing infrastructure. This reduced the debt from about $76 million to about $17 million, with prospects for a further $10 million reduction. For the latter, Greenidge must grant the creditor rights to a new mining facility within three months.
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The company entered into a hosting and profit-sharing agreement with NYDIG. Greenidge retains a fleet of ~10 000 Bitcoin miners with a hashrate of around 1.1 EH/s.
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The company reduced its obligations to B. Riley from $11 million to $9 million. The investment bank agreed to purchase Greenidge shares for $1 million at a price of $0.75 per share — below the рынка. Atlas Holdings will purchase another $1 million of Greenidge’s shares, with B. Riley acting as broker in the deal.
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To generate additional liquidity, Greenidge is actively selling excess real estate at its facility in South Carolina. The company expects the proceeds to help retire another $6-$7 million of debt with the bank.
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\”We value the strong partnership with our lenders, NYDIG and B. Riley, who have worked with us to offer mutually beneficial solutions,\” said Greenidge CEO Dave Anderson.
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As ForkLog reported in an exclusive piece, the mining industry survived in 2022 amid the crypto winter.