On the 31st of January, Greenidge Generation, a Bitcoin miner, announced that it signed a new debt restructuring deal with B. Riley, an investment bank, and NYDIG, a crypto investment firm. With this new deal, there will be around a $61 million reduction in its total debts. In December 2022, the Bitcoin miner announced that there was substantial doubt about its capacity to resume as a business. At that time, Greenidge Generation said that its board of directors had discussed the option of voluntary bankruptcy.
In today’s announcement, Greenidge Generation said that this new debt restructuring plan with its two main lenders had reduced its debt balances from $87 million to around $26 million. According to today’s announcement, the Bitcoin miner has restructured its secured debt with NYDIG of around $76 million, which also includes accrued interest, which reduced it to around $17 million.
The terms of this new deal with NYDIG and B. Riley also include the transfer of around 2.8 EH/s of mining capacity, mining infrastructure, and equipment. The debt restructuring deal with NYDIG also includes the potential to lower the debt even further by around $7 million, but on the condition that Greenidge may facilitate the ownership of a new mining site on behalf of NYDIG in only three months. With its debt restructuring deal with B. Riley, Greenidge can reduce its $11 million promissory note, which is a type of debt repayment agreement. This promissory note agreed with B. Riley to $9 million in currency obligations.
The terms with B. Riley include agreeing to purchase $1 million of Class A common stock of Greenidge at a reduced rate. And Atlas Holdings LLC, a manufacturing holding company, will also buy $1 million stock at market prices, and B. Riley will act as its agent for this transaction. In today’s announcement, the Bitcoin miner said that it is also pursuing the sale of extra real estate at its site in Spartanburg, South Carolina, which could reduce its debt by $6 million.
