Bitcoin miner Greenidge lost $130M in 2022 Q4; restructures debt with NYDIG, B. Riley
The Bitcoin miner restructured its debt with its creditors, giving it more time to repay and further opportunities to reduce its debt burden.
Bitcoin (BTC) mining firm Greenidge said it lost about $130 million during the fourth quarter of 2022 while earning just $15 million, according to a Jan. 31 statement.
The BTC miner was one of the several companies that had a difficult 2022 due to the challenging market conditions.
“Greenidge ended the quarter with approximately $16 million of cash and fair value of crypto currency holdings, of which less than $1 million was cryptocurrency holdings, and approximately $152 million of debt, net of debt issue costs.”
Greenidge added that it sold its subsidiary, Support.com, for $2.6 million on Jan. 17.
Reduces debt with NYDIG to $17 million
The firm said it restructured its secured debt with crypto lender New York Digital Investment Group (NYDIG) to $17 million.
Greenidge said it transferred the rights of certain miners and some unnamed credits and coupons to NYDIG. The transferred assets reduced its debt by approximately $59 million.
The Bitcoin miner added that it could further cut its debt by $10 million if it can help NYDIG secure the rights to a mining facility within the next three months.
Greenidge revealed that it entered into a five-year hosting agreement with the lender, adding that the deal contains a “profit-sharing component.” The agreement terms would also see NYDIG pay a hosting fee that covers the cost of power and the management of the mining facilities.
Despite this new restructuring, Greenidge still owns “10,000 miners with a capacity of approximately 1.1 EH/s.”
Restructures another $11 million in debt
The struggling BTC miner further revealed that investment bank B. Riley Financial has agreed to restructure an $11 million promissory note.
Greenidge said it would make a principal payment of $1.9 million to B. Riley, and no further payments are expected on the notes till June. However, if the miner can pay $6 million of its debt before June 20, B. Riley agreed to cut its loan repayment to $400,000 monthly from the current $1.5 million.
Greenidge added that it wants to sell excess real estate from its South Carolina mining facility to repay part of the promissory note.
The miner would pay an amendment fee of $1 million to B. Riley with its stock option. Besides that, the investment bank and an affiliate of Atlas Holdings will purchase an additional $2 million of Greenidge’s stock.
Speaking about the restructured debts, Greendige’s CEO Dave Anderson said:
“The debt restructuring we’ve announced today significantly improves our balance sheet and provides us with a clear path forward as we enter 2023… These agreements have effectively reduced our secured debt balances with these lenders from approximately $87 million to approximately $26 million and have the strong potential to allow us to further reduce our debt.”