The deal, if executed, would essentially restructure the company into a hosting company for bitcoin mining rigs.

According to a Dec. 20 filing with the United States Securities and Exchange Commission, Bitcoin
Bitcoin

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Miner Greenidge has reached an agreement to restructure approximately $74 million in debt with its creditor, fintech firm NYDIG. The non-binding terms and conditions agreement would represent a material change in Greenidge’s current business strategy and would essentially transform Greenidge from a standalone company into a hosting of NYDIG’s mining rigs.

Under the terms of the agreement, NYDIG would purchase miners at approximately 2.8 exahashes per second (EH/s) mining capacity hosted by Greenidge, which would facilitate NYDIG’s rights to a mining site within three months of closing. Debt restructuring and adjustment agreements. In exchange for consideration equal to the miners purchased and the transfer of mining infrastructure and loans to NYDIG, the Company would agree to a $57 million to $68 million debt reduction for Greenidge.

In addition, Greenidge would collateralize a significant portion of its unencumbered assets to secure the balance of the NYDIG loan. The company would retain ownership of the 1.2 PE/s capacity miners. As of October 31, 2022, Greenidge had a mining capacity of approximately 2.5 PE/s with approximately 24,500 miners on the job.

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However, the company also wrote that “there remains uncertainty about Greenidge’s financial condition and significant doubts about its ability to continue as a going concern.” Last month, Greenidge used approximately $8 million of its cash on hand during operations, of which $5.5 million was used to pay principal and interest. As of November 30, 2022, the Company’s cash balance was approximately $22 million. Greenidge also cautioned that “NYDIG and Greenidge will endeavor to enter into definitive documentation that reflects the terms described in this press release, but there can be no assurance that these terms will not change materially, nor can there be any assurance that that the transactions discussed in this press release will be notified and the clearance will be completed.

In September 2021, Cointelegraph reported that Greenidge had completed a merger with Support.com, a provider of customer and technical support solutions, to become a Nasdaq-listed mining company. Since then, shares have fallen more than 99%, due in part to a combination of the ongoing crypto winter, higher electricity prices, higher mining difficulties, and oil prices. lower bitcoin mining rig market.

Source: CoinTelegraph

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