Bitcoin (BTC) mining company Greenidge Generation has reportedly significantly reduced its debt with investment manager New York Digital Investment Group, or NYDIG.
Debt restructuring completed
Greenidge reportedly entered into several agreements to reduce debt. As a result, ownership of Bitcoin mining hardware has been transferred to NYDIG, among other things. This, in turn, has reduced Greenidge’s debt from approximately $76 million to approximately $17 million. Total debt has been reduced by about $59 million.
The mining company itself had expected to reduce their debt by at least $57 million and a maximum of $68 million. So this worked. Greenidge CEO Dave Anderson is confident about the strong development of the mining industry. He therefore stated the following:
The completion of this debt restructuring, coupled with the execution of the new hosting agreements, has significantly improved our immediate liquidity and allows us to continue to participate in Bitcoin’s future upside.
Hard blow to crypto miners
Despite being effectively restructured into a hosting company for BTC mining rigs, the company still has around 10,000 of its own miners. These miners together have a capacity of about 1.1 exahashes per second (eh/s), according to the company.
The mining industry has therefore taken a hard hit since the crypto winter. The companies’ revenues have fallen significantly. This has caused many mining companies to move to countries with cheaper electricity prices in order to reduce costs and reduce their potential debt.
In addition to the debt reduction, Greenidge also released preliminary financial results for the fourth quarter of 2022, showing $15 million in revenues and up to $130 million in losses. The company produced approximately 683 BTC ($15.7 million) during Q4 2022. Finally, Greenidge also mentioned the sale of its Software subsidiary support.com earlier this month. The sale generated net proceeds of approximately $2.6 million.