Greenidge Reduces Debt with NYDIG
Rebeca Moen Feb 01, 2023 09:35
Greenidge lowered its NYDIG debt by 76% by relinquishing partial ownership of Bitcoin mining gear and credits.
The amount of debt that the cryptocurrency mining company Greenidge Generation Holdings owes to the investment management firm New York Digital Investment Group has been reduced by a sizeable amount thanks to Greenidge Generation Holdings' efforts. This reduction came about as a result of Greenidge Generation Holdings' successful negotiations with New York Digital Investment Group (NYDIG).
Greenidge engaged into a number of agreements with NYDIG on January 30 that were connected to the secured debt that the company had. In accordance with the terms of these agreements, Greenidge has transferred to NYDIG ownership of Bitcoin mining equipment in addition to a number of credits. These contracts were a part of Greenidge's secured obligation with NYDIG and acted as a component of that loan. They were contained in the document. As a direct consequence of the transaction, the main amount of debt that was owing to NYDIG was decreased from roughly $76 million to approximately $17 million, which resulted in a total reduction of about $59 million in aggregate debt. In addition to this, the part of the debt that represented the accrued interest was decreased from roughly $17 million to approximately $76 million, a reduction of nearly $29 million.
A clause in one of the agreements, which is referred to as the senior secured loan agreement, makes it possible to make a voluntary return of the loan through the transfer of ownership of specific mining infrastructure assets. This clause is included in the agreement because it is the senior secured loan agreement. This is one of the three agreements that have been reached. As a consequence of the loan arrangement, it is likely that the primary amount of the debt will be lowered to somewhere in the vicinity of $7 million; however, this reduction is contingent on NYDIG reaching an agreement that is legally enforceable.
According to information that had been made public in the past, Greenidge initially signed the arrangement in the middle of December 2022 with the expectation that it would reduce its debt to NYDIG by at least 57 million dollars and possibly as much as 68 million dollars. This information was made public in the past. This information had been made public at an earlier time.
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