By George Ward
Greenidge Generation Holdings, a BTC mining firm, has significantly cut its debt with the NYDIG (New York Digital Investment Group).
Greenidge Reduces Debt By $59 Million
On Monday, Greenidge signed several agreements with NYDIG concerning the debt it owes the investment company. Greenidge transferred ownership of certain credits and BTC mining hardware to NYDIG.
This transaction lowered the principal and interest that Greenidge owed NYDIG. Before now, the crypto miner owed the investment management firm over $76 million.
However, the recent transaction reduced the total debt by about $59 million, dropping it to $17 million. One of the established deals, the senior secured loan deal, provides the possibility of a voluntary early repayment of the loan through the transfer of ownership of specified mining infrastructures.
This loan agreement can further decrease the amount of the outstanding debt to $7 million. However, this is subject to NYDIG’s binding agreement. According to previous reports, Greenidge first agreed to deal in the middle of December 2022, hoping to reduce its debt by about $57 million to $68 million.
Dave Anderson, the CEO of Greenidge, stated that the firm’s latest debt restructuring move had improved its balance sheet. He further noted that the firm now has a clear path in 2023.
The executive expressed confidence in the robust growth of the mining industry in the future, saying: “the conclusion of this debt reorganization, in conjunction with the implementation of the new hosting arrangements, has considerably enhanced our short-term liquidity. It has enabled us to remain involved in the prospective benefits of Bitcoin.”
Recently, Greenidge restructured its operations and became a hosting company for BTC mining rigs. Notwithstanding, Greenidge still has over 10,000 miners and maintains a 1.1 exahashes per second (EH/s) mining capacity.
Greenidge Releases Financial Statement For Q4 2022
Meanwhile, Greenidge has published the company’s financial results for Q4 2022. According to the report, Greenidge made over $15 million in revenue while recording a net loss of $130 million.
The company generated approximately 683 Bitcoin (BTC), equivalent to $15.7 million in Q4 2022. Furthermore, Greenidge revealed that it sold its software subsidiary (Support.com) on January 17th.
The crypto miner generated over $2.6 million from the sales. Reports reveal that public BTC mining firms have a collective debt of over $4 billion.