- Greenidge suffers from serious debts of $74 million.
- Approaches NYDIG to restructure the debts to avoid bankruptcy for 2023.
- Greenidge is no longer an independent BTC mining firm.
Though the year 2022 is nearing its end, the aftermath is ought to be seen throughout the year 2022. The American Bitcoin (BTC) mining firm Greenidge, seems to be the latest tragic firm to nearly shut down itself, filing bankruptcy in the year 2022.
Ever since Greenidge started off their BTC mining firm, it was indeed quite successful. However, as the year 2022 was a sort of a complete winter for the entire crypto industry, Greenidge started to move towards hefty losses, despite continuous BTC mining.
Greenidge’s Approach to NYDIG
Various factors have contributed towards the fall of Greenidge towards huge debts. From a band market over a long period, with BTC plunging down, and along with environmental concerns and restrictions imposed by the New York state towards BTC mining, all accounted for Greenidge’s bankruptcy.
As of September, 2022, Greenidge has been officially locked down to debts of more than $74 million. In such a situation, Greenidge is currently being pushed towards filing bankruptcy. The NYDIG being the major creditor for Greenidge, accounts foremost of the credits too.
With cornerings from all possible surroundings, Greenidge has approached NYDIG to restructure $74 million of the debt. In such terms, Greenidge will no longer be an independent mining firm, but a firm working for BTC mining for NYDIG.
Accordingly, NYDIG will be purchasing the mining equipment of 2.8 exahashes per second (EH/s) from Greenidge. In addition, NYDIG will get all the mining rights within three months from the restructure of the debts.
Therefore, in exchange for the mining equipment purchases, transfer of mining rights, and further credits to NYDIG, NYDIG has to pull off $57 million to $68 million of debt from Greenidge’s account. This proposal agreement has been filed to the U.S Security and Exchange Commission too.
However, Greenidge will continue mining with 1.2 EH/s capacity machines, and serve NYDIG for BTC mining. With such a crucial situation, this is the only way or solution for Greenidge to avoid filing any bankruptcy at the moment.
Also, to continue further down in 2023, Greenidge has to secure at most fundings as soon as possible.
