Greenidge Generation, a bitcoin miner operating in New York, has reached a restructuring agreement for $74.4 million in debt with its creditor, NYDIG.
The restructuring will involve NYDIG purchasing the 2.8 exahash per second (EH/s) bitcoin miner Greenidge, which Greenidge will host for NYDIG. This will eliminate $57-$68 million in debt, leaving Greenidge with approximately 1.8 EH/s from its own miners, while requiring the mining company to also pledge the rest of its unencumbered assets to secure the rest of the debt.
According to the released term sheet, “The Company’s average monthly cash burn rate during October and November 2022 is approximately $8 million, of which approximately $5.5 million per month is attributable to principal and interest payments to NYDIG. Furthermore, the Company expects to have cash equivalent, and payment equivalent to NYDIG, during December 2022.
Earlier, Greenidge started sounding the alarm about its financial status due to the amount of cash it was burning, indicating that it will quickly run out of money by March 2023.
Bitcoin miners have been hit hard as old bull market orders have ended and new contributions have increased the hash rate, all while the price of bitcoins held by miners has dropped. In effect, they are mined high and sold low.