Bitcoin mining company Greenedge Generation Holdings Inc. A restructuring agreement has been reached with NYDIG, according to an announcement on Tuesday. According to a non-binding paper agreement, NY DIG will receive 2.8 exahash per minute (EH/s) of Greenidge’s mining rights, and Greenidge has entered into a hosting agreement with NYDIG for one 2.8 EH/s.
Greenidge’s Generation Arrives at NYDIG, Board Discusses “Potential and Timing of Voluntary Funding”
Bitcoin miners have faced a financial crisis in 2022 as the price of bitcoin (BTC) fell below the cost of production, and the difficulty of the network is high.
In addition, many integrated bitcoin farms have faced defaults and bankruptcy which has led to dispersal within the mining industry. On Tuesday, Greenidge Generation of New York negotiated an agreement with NY DIG for a $74 million loan. Over the past six months, shares of Greenidge (Nasdaq:GREE) have traded 88.91% against the US dollar. 35.58% lost in the last 30 days according to GREE/USD market data. Greenidge says it has “entered into an unrelated document with NY DIG” and NYDIG will buy 2.8 PE/s of the company’s mining machines.
In addition, New York mining companies have announced plans to enter into a compliance agreement with NYDIG.
“Greenidge will enter into a concession agreement with NYDIG for approximately 2.8 PE/s of mining rights, which will make a significant change to Greenidge’s current business plan and allow Greenidge to mine miners of NYDIG, rather than the miners owned by Greenidge,” the company explained on Tuesday. In exchange, NYDIG outlined its plan to reduce Greenidge’s $74 million debt. Greenidge said:
In return for miners purchasing and transferring mining equipment on credit to NYDIG, will agree to approximately $57-68 million in debt relief.
NYDIG has been a big supporter when it comes to lending and bitcoin investment services, lending more than $300 million to companies like Stronghold, Greenidge, Argo Blockchain, Iris Energy, and Core Scientific. The company’s Application-specific Integrated Circuit (ASIC) mining machines are also used.
In addition to Tuesday’s restructuring update, Greenidge has filed a filing with the US Securities and Exchange Commission (SEC) that says Greenidge executives are in serious discussions about the possibility and timing of a voluntary filing.
Bitcoin Mining says bankruptcy could occur if Greenidge finds it has no funds available, its remaining capital runs out and cannot meet its debt obligations, or if Greenidge defaults on its debt or is his contract.