Greenidge to Sell Bitcoin Miners to NYDIG to Repay $74 Million Debt

The mining company Greenidge Generation has entered into an agreement with lender NYDIG to sell most of its mining machines to repay a debt of $74 million. The deal was announced on the site на сайте SEC.

As a result of the deal, Greenidge will become the host for equipment owned by a third-party company with a total hashrate of 2.8 EH/s, and will also transfer other assets — mining infrastructure, the capital of subsidiary entities and other property.

«This will improve our future liquidity and be a significant step toward strengthening the balance sheet», said Greenidge Generation CEO Dave Anderson.

In his words, “the thoughtfully considered terms of the agreement” will allow the company to continue participating in “unlocking the future potential of Bitcoin”.

The document also states that the transfer of equipment and other assets to NYDIG will reduce the debt burden to the lender to between $57 million and $68 million.

The mining company will retain devices with a total hashrate of 1.2 EH/s.

«There remains uncertainty regarding Greenidge’s financial condition and serious doubts about its ability to continue operating in the foreseeable future», the SEC site states.

During October–November 2022, the company paid NYDIG $5.5 million each month to service the loan principal and interest. Greenidge plans to make similar payments in December.

In March, the mining company attracted $108 million for a threefold increase in hashrate.

$81.4 million as a loan was provided by an NYDIG-affiliated firm, $26.5 million — in the form of a note issued by a B. Riley Financial-linked entity. In the first case, the company provided collateral for the ordered Antminer S19j Pro units from Bitmain, in the second case — real estate.

Greenidge Generation’s loss for the second quarter amounted to $107.9 million.

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