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

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

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Miner Greenidge has reached an agreement to restructure approximately $74 million in debt with its creditor, fintech company NYDIG. The agreement, in the form of a non-binding term sheet, would entail a significant shift in Greenidge’s current business strategy, essentially transforming Greenidge from a standalone mining company to hosting NYDIG’s mining rigs.

Under the terms of the agreement, NYDIG would purchase miners at approximately 2.8 exahashes per second (EH/s) of mining capacity hosted by Greenidge, giving NYDIG rights to a mining site within three months of the completion of debt restructuring and hosting arrangements would facilitate . In return for consideration for purchased miners and transferring mining infrastructure and loans to NYDIG, the company would agree to reduce Greenidge’s debt from $57 million to $68 million.

Additionally, Greenidge would pledge 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 has a mining capacity of approximately 2.5 PE/s of approximately 24,500 miners at work.

However, the company also wrote that “there remains uncertainty about Greenidge’s financial condition and significant doubts about its ability to continue in business.” Last month, Greenidge used about $8 million of its cash on hand, of which $5.5 million was used for principal and interest payments. As of November 30, 2022, the Company’s cash balance was approximately $22 million. Greenidge also cautioned that “NYDIG and Greenidge will endeavor to produce definitive documentation that reflects the terms described in this press release, but no assurance can be given that these terms will not change materially, nor any assurance that the transactions discussed in this press release will proceed.The release will be consummated.

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

Source: CoinTelegraph