Greenidge Generation Holdings has successfully wiped out $21.8 million in secured debt and divested its South Carolina bitcoin mining facility to NYDIG. The firm detailed that the move enhances Greenidge’s financial stability and liquidity.
Greenidge Generation Holdings Clears $21.8 Million Debt, Sells Mining Site to NYDIG
On Wednesday, Greenidge finalized the sale of a 22-acre mining site with 44 megawatts (MW) of capacity in Spartanburg, SC, to NYDIG. This deal marks the resolution of all outstanding secured debts Greenidge owed to the bitcoin asset management firm.
In 2023, Greenidge achieved a reduction in its financial obligations, slashing $85.3 million from its debt. This substantial repayment accounts for more than half — specifically, over 54% — of its total debt.
However, the company continues to manage $72 million in unsecured debt, due in 2026. The agreement entitles Greenidge to an approximate $6.2 million cash payout. Moreover, the company retains around 153 acres in Spartanburg, earmarked for potential expansion into data centers.
NYDIG, operating under the umbrella of Stone Ridge Holdings Group, provides a spectrum of services including bitcoin (BTC) custody, financial solutions, infrastructure, and BTC mining operations. Acquiring this facility allows NYDIG to further integrate its mining operations with enhanced infrastructure.
Over the last two years, several cryptocurrency miners incurred substantial debts to NYDIG due to loans taken out to support their mining ventures. These loans were secured during a bullish market period, characterized by high profitability.
Nonetheless, the transition to a bear market posed challenges for some of these miners in repaying their debts. Companies including Core Scientific and Iris Energy are among those that held rig-backed loans from the firm.
What do you think about Greenidge clearing its debts? Share your thoughts and opinions about this subject in the comments section below.
via Jamie Redman
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