The partnership will change Greenidge’s present economic model by switching it from self-mining to hosting NYDIG’s mining equipment, claims Cointelegraph.
Bitcoin miner Greenidge and its creditor, financial technology (fintech) company NYDIG, have a contract, according to a December 20, 2022 filing with the Securities and Exchange Commission (SEC) of the United States. Approximately $74 million in debt is expected to be restructured as a result of the agreement, according to Cointelegraph.
The partnership, according to Cointelegraph, will change Greenidge’s present economic model by switching it from self-mining to hosting mining rigs for NYDIG. According to information from the deal, NYDIG would purchase miners with a mining capability of about 2.8 exahashes per second (EH/s) that would be hosted by Greenidge. According to reports, the company would agree to let Greenidge reduce its debt by $57 to $68 million.
According to information from Cointelegraph, Greenidge would maintain control of miners with a capacity of 1.2 EH/s and turn a portion of its assets into collateral to get the remaining NYDIG loan. Greenidge has a 2.5 EH/s mining capacity as of October 31, 2022, with over 24,500 miners actively working there. According to reports, Greenidge used almost $8 million of its funds for operations in the preceding month, of which $5.5 million was used to pay principal and interest. The corporation had around $22 million in cash on hand as of November 30, 2022.
However, there can be no guarantees that the terms described in this release won’t change significantly or that the transactions discussed in this release will actually happen, according to Greenidge.
Additionally, according to Cointelegraph, Greenidge completed a merger with Support.com, a company that offers customer and technical support services, in September 2021 in order to be listed as a public mining platform on Nasdaq.
