Bitcoin (BTC) miner Greenidge said it lost about $130 million during the fourth quarter of 2022 while earning just $15 million, according to Jan. 28. 31 permit.
BTC was one of many companies that struggled in 2022 due to difficult market conditions.
Greenidge finished the quarter with approx $16 million Cash and fair value of cryptocurrency holdings, which is less than $1 million They were holdings of cryptocurrency, and approx $152 million of debt, net of debt issuance costs.”
Greenidge added that it has sold its subsidiary, Support.com $2.6 million in January. 17.
Reduces debt with NYDIG to $17 million
The company said it has restructured its secured debt with crypto lender New York Digital Investment Group (NYDIG) to $17 million.
Greenidge said it transferred the rights to some of the miners and some unnamed credits and vouchers to NYDIG. The transferred assets reduced its debt approx 59 million dollars.
The bitcoin miner added that he could reduce his debt by $10 million if he can help NYDIG secure the rights to a mining facility over the next three months.
Greenidge revealed that it has entered into a five-year hosting agreement with the lender, adding that the deal contains a “profit-sharing element.” The terms of the agreement will also see NYDIG pay a hosting fee that covers the cost of energy and management of the mining facilities.
Despite this new restructuring, Greenidge still has “10,000 miners with a capacity of approximately 1.1 EH/s.”
Restructures another $11 million in debt
The ailing BTC miner has revealed that investment bank B. Riley Financial has agreed to restructure an $11 million promissory note.
Greenidge said she would pay a base amount of $1.9 million to B. Riley, and no further payments on the notes are expected until June. However, if the miner could pay $6 million of his debts before June 20, B agreed. Riley has agreed to reduce his loan payment to $400,000 a month from $1.5 million now.
Greenidge added that she wanted to sell surplus real estate from the South Carolina mining facility to pay off part of the promissory note.
The miner would pay B. Riley a $1 million modification fee with his stock option. Besides, the investment bank and an affiliate of Atlas Holdings will purchase an additional $2 million in Greenidge shares.
Speaking about the restructured debt, Greendige CEO Dave Anderson said:
“The debt restructuring we 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 nearly $87 million almost $26 million And we have a strong potential to allow us to further reduce our debt.”
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