{"id":15678,"date":"2022-12-20T20:57:05","date_gmt":"2022-12-20T20:57:05","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/bitcoin-miner-greenidge-enters-non-binding-debt-restructuring-deal-with-nydig-mining-bitcoin-news\/"},"modified":"2022-12-20T20:57:05","modified_gmt":"2022-12-20T20:57:05","slug":"bitcoin-miner-greenidge-enters-non-binding-debt-restructuring-deal-with-nydig-mining-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/bitcoin-miner-greenidge-enters-non-binding-debt-restructuring-deal-with-nydig-mining-bitcoin-news\/","title":{"rendered":"Bitcoin Miner Greenidge Enters Non-Binding Debt Restructuring Deal With NYDIG \u2013 Mining Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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The bitcoin mining operation Greenidge Generation Holdings Inc. has executed a restructuring deal with NYDIG, according to an announcement published on Tuesday. According to the non-binding term sheet agreement, NYDIG will obtain 2.8 exahash per second (EH\/s) of Greenidge\u2019s mining capacity, and Greenidge further entered into a hosting deal with NYDIG for the same 2.8 EH\/s.<\/strong><\/p>\n

Greenidge Generation Enters Into a Deal With NYDIG, Board Is Actively Discussing the \u2018Potential for, and Timing of, a Voluntary Bankruptcy Filing\u2019<\/h2>\n

Bitcoin miners have been hammered by financial problems in 2022 as the price of bitcoin (BTC<\/a>) has dropped below the cost of production, and the network\u2019s mining difficulty is very high. Furthermore, a number of interconnected bitcoin mining operations have been dealing with loan defaults and bankruptcies that have caused a contagion within the mining industry. On Tuesday, the New York-based Greenidge Generation renegotiated a deal with NYDIG that concerns a loan worth $74 million.<\/p>\n

Over the last six months, Greenidge (Nasdaq: GREE<\/a>) shares have nosedived by 88.91% against the U.S. dollar. 35.58% has been lost during the last 30 days according to GREE\/USD market data. Greenidge says it \u201centered a non-binding term sheet with NYDIG\u201d and NYDIG will purchase 2.8 EH\/s of the company\u2019s mining machines. Furthermore, the New York-based mining firm says it plans to enter into a hosting agreement with NYDIG.<\/p>\n

\u201cGreenidge would enter into a hosting agreement with NYDIG for approximately 2.8 EH\/s of mining capacity, which would result in a material change to Greenidge\u2019s current business strategy and result in Greenidge largely operating miners owned by NYDIG, rather than operating miners owned by Greenidge,\u201d the company detailed on Tuesday. In exchange, NYDIG has detailed its plans to reduce Greenidge\u2019s $74 million debt. Greenidge stated:<\/p>\n

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In exchange for the purchased miners and transfer of mining infrastructure and credits to NYDIG, NYDIG would agree to a reduction of approximately $57 to $68 million of debt.<\/p>\n<\/blockquote>\n

NYDIG has been a big backer when it comes to lending to bitcoin mining operations as it has lent more than $300 million to firms like Stronghold, Greenidge, Argo Blockchain, Iris Energy, and Core Scientific. The loans were secured by the firms\u2019 application-specific integrated circuit (ASIC) mining machines.<\/p>\n

In addition to the restructuring update on Tuesday, Greenidge also filed documentation<\/a> with the U.S. Securities and Exchange Commission (SEC) that notes Greenidge execs are in active discussions about the potential for, and timing of, a voluntary bankruptcy filing.\u201d<\/p>\n

The bitcoin mining operation says that bankruptcy could happen if Greenidge discovers it does not have available liquidity, its remaining capital depletes and cannot fulfill debt obligations, or if Greenidge defaults on any debts or contracts.<\/p>\n

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\nTags in this story
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(Nasdaq: GREE)<\/a>, Argo Blockchain<\/a>, ASIC miners<\/a>, Bankruptcy<\/a>, bitcoin Greenidge<\/a>, Bitcoin mining<\/a>, Core Scientific<\/a>, debt<\/a>, Greenidge<\/a>, Greenidge bitcoin<\/a>, Iris Energy<\/a>, loans<\/a>, NY bitcoin miner<\/a>, NY Miner<\/a>, nydig<\/a>, NYDIG loan<\/a>, pay down debt<\/a>, restructuring update<\/a>, SEC<\/a>, Stronghold<\/a>, U.S. Securities and Exchange Commission (SEC)<\/a><\/div>\n<\/div>\n

What do you think about Greenidge\u2019s restructuring deal with NYDIG? Let us know what you think about this subject in the comments section below. <\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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