- Greenidge transferred Bitcoin mining gear and some credits to NYDIG.
- The loan deal allows for a possible principal amount reduction to about $7 million.
Investment management business New York Digital Investment Group’s (NYDIG) debt to Bitcoin mining firm Greenidge Generation Holdings has been drastically decreased.
Greenidge transferred Bitcoin mining gear and some credits to NYDIG. As part of a series of agreements signed with NYDIG on January 30 relating to Greenidge’s secured debt. As a consequence of the deal, the company’s debt to NYDIG was decreased by approximately $59 million. From about $76 million to around $17 million (including principle and accumulated interest).
Optimistic of Mining Industry
The senior secured loan arrangement is the one that allows for the payback of the loan on the borrower’s own time via the sale of mining infrastructure assets. The loan deal allows for a possible principal amount reduction to about $7 million, contingent on an agreement by NYDIG.
Moreover, the initial agreement was signed by Greenidge in the middle of December 2022. With the company anticipating a reduction in their NYDIG debt of between $57 million and $68 million.
According to Greenidge CEO Dave Anderson:
“The debt restructuring we’ve announced today significantly improves our balance sheet and provides us with a clear path forward as we enter 2023.”
The CEO is optimistic about the mining industry’s bright future. Furthermore, Greenidge stated it still owns roughly 10,000 miners and has a capacity of 1.1 exahashes per second (EH/s), despite transforming itself into a hosting provider for Bitcoin mining equipment. The crypto industry has been through a harsh winter, and many mining companies have been taking similar steps to reduce their debt.
