Greenidge Cuts NYDIG Debt by $59M, Significantly Improves Balance Sheet

• Greenidge Generation Holdings has significantly reduced its debt with the investment management firm New York Digital Investment Group (NYDIG).
• The transaction reduced the principal and accrued interest balance of debt with NYDIG from about $76 million to roughly $17 million.
• The loan agreement can potentially reduce the principal balance of the debt to approximately $7 million.

Greenridge Cuts Debt with NYDIG

Bitcoin miner Greenridge Generation Holdings has entered into several agreements associated with its secured debt with New York Digital Investment Group (NYDIG), reducing the principal and accrued interest balance of debt from about $76 million to roughly $17 million. This results in total aggregate debt reduction of around $59 million.

Voluntary Prepayment Opportunity

The senior secured loan agreement also enables an opportunity for a voluntary prepayment of the loan by transferring ownership of certain mining infrastructure assets. Subject to a binding agreement by NYDIG, this could potentially reduce the principal balance of the debt to approximately $7 million.

Clearer Path Forward

Greenidge CEO Dave Anderson expressed confidence about their clear path forward as they enter 2023, stating: „The completion of this debt restructuring, coupled with the execution of new hosting agreements, has improved our balance sheet.“ Despite restructuring into a hosting firm for Bitcoin mining, Greenidge still owns about 10,000 miners which maintain a capacity of 1.1 EH/s.

Transaction Details

On Jan 30th 2021, Greenidge entered into several agreements associated with its secured debts with NYDIG, transferring ownership of Bitcoin mining hardware and certain credits to NYDIG in order to reduce their total aggregate debt by ~$59Million USD.

Conclusion

The successful restructuring between Greenidge Generation Holdings and New York Digital Investment Group (NYDIG) resulted in reducing their total aggregate debt from ~$76million USD down to ~$17million USD – representing a potential savings for both companies worth over half their original amount owed (~$59million USD).