Troubled U.S.-based Bitcoin mining firm Greenidge Generation Holdings Inc. has entered a debt restructuring agreement with NYDIG, a cryptocurrency service provider to which Greenidge owes US$74 million.

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Fast facts

  • As part of the agreement announced on Tuesday, NYDIG will purchase Greenidge’s mining machines with about 2.8 exahashes per second (EH/s) of mining capacity. Greenidge will continue to host the machines.
  • The Nasdaq-listed miner plans to retain ownership of mining rigs with 1.2 EH/s capacity but may transfer its credits, coupons and additional assets to NYDIG under the agreement.
  • In exchange, NYDIG would reduce the debt to between US$57 million and US$68 million.
  • Without more liquidity, Greenidge risks losing the ability to support its business operations within the next two months, the company said in the Tuesday statement.
  • Greenidge said its board has “engaged in active discussions about the potential for, and timing of, a voluntary bankruptcy filing.”
  • The company said that even with the NYDIG deal, Greenidge still needs at least US$20 million in additional liquidity to fund its cash requirements.
  • Greenidge’s shares on the Nasdaq closed down 17.97% at US$0.3012 on Tuesday, down from US$17.46 a year ago.
  • Several U.S.-based mining firms, including Core Scientific and Compute North, are mired in liquidity crunches. Another miner, Foundry Digital LLC, said last month that it plans to acquire two turnkey mining facilities from Compute North.

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