Bitcoin miner Greenidge_GREE reaches debt restructuring deal with NYDIG even as bankruptcy remains an option. By egreechee
Bitcoin mining firm Greenidge Generation came to an agreement with its lender NYDIG about restructuring $74.7 million of debt, though a bankruptcy is still on the cards.
Cash burn is unsustainable and the firm's board is engaged"in active discussions about the potential for, and timing of, a voluntary bankruptcy filing," Greenidge said in a. If the deal with NYDIG is finalized, Greenidge still needs $20 million in fresh funding through 2023 to avoid bankruptcy. Under the deal, which is currently in the form of a non-binding term sheet, NYDIG will purchase 2.8 exahash per second worth of Greenidge's bitcoin mining machines, and extinguish $57 million-$68 million of the debt. That will leave Greenidge with 1.2 EH/s of machines, and the miner will also pledge the rest of its unencumbered assets to secure the rest of the loan, which will be somewhere between $6 million to $17 million.
The loan in question had about $74.7 million outstanding as of Sept. 30. Prior to reaching a deal with NYDIG, Greenidge had estimated it would have to spend a minimum of $66.5 million in principal payments throughout 2023. Greenidge will host NYDIG's machines, effectively changing its business model from self-mining to hosting, the filing said., particularly for miners like Greenidge that are exposed to natural gas prices.
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