Bitcoin miner Greenidge lost $130M in 2022 Q4; restructures debt with NYDIG, B. Riley
Bitcoin (BTC) mining company Greenidge said it lost about $130 million in the fourth quarter of 2022 and earned just $15 million, according to a Jan. 31 statement.
BTC miners were one of several companies that faced difficulties in 2022 due to difficult market conditions.
“Greenwich is about a quarter $16 million Of the fair value of cash and virtual currency holdings, $ 1,000,000 is cryptocurrency holdings and is approximately $152 million After deducting bond issuance costs. ”
Greenidge added that it has sold its subsidiary Support.com. $2.6 million on January 17th.
Reduced debt with NYDIG to $17 million
The company said it has restructured its secured debt with cryptocurrency lender New York Digital Investment Group (NYDIG) to $17 million.
Greenidge said it has transferred certain miner rights and some unnamed credits and coupons to NYDIG.Assets transferred reduce liabilities to approximately $59 million.
The Bitcoin miner added that it could reduce its debt by another $10 million if it can help NYDIG secure the rights to its mining facility within the next three months.
Greenwich clearly It signed a five-year hosting contract with the lender, adding that the deal included a “profit-sharing element.” The terms of the agreement also stipulate that NYDIG will pay a hosting fee that covers the cost of electricity and management of the mining facility.
Despite this new reorganization, Greenidge still owns “10,000 miners with a capacity of about 1.1 EH/s.”
Restructuring another $11 million of debt
The struggling BTC miner has also revealed that investment bank B. Riley Financial has agreed to restructure its $11 million promissory note.
Greenidge said it would make principal payments. $1.9 million To B. Riley, no further payments are due until June. But if Miner can pay off his $6 million debt by June 20, B. Riley will cut his loan repayments from $1.5 million he currently has to $400,000 a month. Agreed.
Greenidge added that it would like to sell excess real estate from its South Carolina mining facility to pay off some of its promissory notes.
Miners will pay B. Riley a $1 million correction fee with stock options. In addition, investment banks and affiliates of Atlas Holdings will purchase an additional $2 million in Greenidge shares.
Greendige CEO Dave Anderson said of the debt restructuring:
“The debt restructuring we announced today has significantly improved our balance sheet and set a clear path forward to 2023…these agreements will bring our secured debt balance with these lenders to approximately $87 million up to approximately $26 million It has strong potential to further reduce debt. ”