• Greenidge Generation, a bitcoin miner operating in New York, has reached a restructuring agreement with its lender, NYDIG, for its $74.4 million debt.
• The agreement involves NYDIG purchasing 2.8 exahash per second (EH/s) of Greenidge’s bitcoin miners and eliminating $57-$68 million of debt for the mining firm.
• Greenidge has an average monthly cash burn rate of $8 million, with $5.5 million of that being associated with principal and interest payments to NYDIG.

Greenidge Generation, a bitcoin miner operating in New York, has recently come to a restructuring agreement with its lender, NYDIG, in order to address its $74.4 million debt. The agreement involves NYDIG purchasing 2.8 exahash per second (EH/s) of Greenidge’s bitcoin miners, which will eliminate $57-$68 million of the debt. This leaves Greenidge with approximately 1.8 EH/s of its own miners, with the rest of its unencumbered assets needing to be pledged to secure the remainder of the loan.

The financial burden has been weighing heavily on Greenidge, with an average monthly cash burn rate of $8 million, with $5.5 million of that being associated with principal and interest payments to NYDIG. This has been causing alarm for the company, indicating that at the current rate, it will be out of money by March 2023. Other miners have been in a similar situation, facing old bull market orders fulfilled and new hash rate contributions, while the price of cryptocurrency held by the miners continues to plummet.

The restructuring agreement is a major step forward for Greenidge to be able to continue operating. It provides the company with a chance to focus on its long-term goals, and will help ensure that it can continue to provide reliable services to its customers and stakeholders. With the new agreement in place, Greenidge can continue to be an industry leader in bitcoin mining, while also providing a much-needed financial reprieve.

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