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New Deal With NYDIG and B. Riley Cuts Bitcoin Miner Greenidge's Debt by $61M

source-logo  decrypt.co 31 January 2023 12:15, UTC

Embattled Bitcoin miner Greenidge Generation has finalized its debt restructuring plans with investment bank B.Riley and crypto investment firm NYDIG, reducing its total debts by $61 million.

In December 2022, the miner announced that there was “substantial doubt” about its capacity to continue as a business, saying that its board of directors had actively discussed the possibility of voluntary bankruptcy.

Greenidge said the new agreements with its two major lenders have reduced its debt balances from approximately $87 million to around $26 million.

As per the announcement, Greenidge has restructured its secured debt with NYDIG of approximately $76 million, which includes accrued interest, reducing it to approximately $17 million.

The terms of the deal included the transfer of approximately 2.8 EH/s of mining capacity as well as mining infrastructure and equipment.

The new deal with NYDIG also includes the potential to reduce the debt even further, by approximately $7 million, if Greenidge can facilitate the rights to a new mining site on behalf of NYDIG within three months.

Greenidge was also able to reduce its $11 million promissory note—a type of debt repayment agreement—agreed with B. Riley to $9 million in cash obligations.

The terms of that include B. Riley agreeing to purchase $1 million of Greenidge's Class A common stock at a reduced rate, with manufacturing holding company Atlas Holdings LLC also buying $1 million stock at market prices, with B. Riley acting as its agent for this transaction.

Greenidge said it is also “actively pursuing” the sale of excess real estate at its site in Spartanburg, South Carolina, which is expected to reduce its debt with B. Riley by an additional $6 million.

Decrypt has contacted Greenidge, B. Riley, and NYDIG for additional comment.

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The past six months have been brutal for miners, with some, such as Core Scientific recently declaring bankruptcy.

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decrypt.co