Mining company Greenidge Generation (GREE) has reached an agreement with its creditor NYDIG to restructure a $74 million debt.
As part of the first phase of the agreement, GREE signed a non-binding deal to sell most of its mining hardware. The next stage of the restructuring involves entering into a hosting agreement with NYDIG. Thus, Greenidge is changing its business strategy from self-mining to a hosted service provider. In addition, GREE will transfer assets, including infrastructure and equity capital of its subsidiaries, to the lender.
Like many companies in the cryptocurrency industry, Greenidge is struggling with a lack of liquidity and is looking to raise additional capital. GREE spends between $5 million and $8 million a month to service its debt and maintain its operations, while the company’s total cash and cash equivalents slightly exceed $20 million.
Greenidge does not hide the fact that if in the next two or three months it is not possible to find additional funding to cover operating costs, then bankruptcy will be the only way out of the problem situation.
Earlier it became known that another of the largest public cryptocurrency mining companies in the US, Core Scientific, plans to file for protection from creditors in the bankruptcy court of Texas.
Source: Bits
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