Greenidge Generation Holdings has achieved a significant financial milestone by eliminating $21.8 million in secured debt and selling its South Carolina Bitcoin mining facility to NYDIG. This strategic move is designed to enhance Greenidge’s overall financial stability and liquidity.
The finalized transaction, completed on Wednesday, involves the sale of a 22-acre mining site in Spartanburg, SC, with a capacity of 44 megawatts (MW), to NYDIG. This sale represents the resolution of all outstanding secured debts owed by Greenidge to the Bitcoin asset management firm.
In the financial year 2023, Greenidge proactively reduced its financial obligations by an impressive $85.3 million, marking a reduction of over 54% of its total debt. Despite this progress, the company still manages $72 million in unsecured debt, scheduled for repayment in 2026. As part of the agreement, Greenidge is entitled to a cash payout of approximately $6.2 million. The company also retains ownership of about 153 acres in Spartanburg, providing potential opportunities for future expansion into data centers.
NYDIG, a subsidiary of the Stone Ridge Holdings Group, offers a range of services, including bitcoin custody, financial solutions, infrastructure, and bitcoin mining operations. The acquisition of Greenidge’s mining facility allows NYDIG to further integrate its mining operations with advanced infrastructure.
In the past two years, various cryptocurrency miners faced significant debts to NYDIG as they secured loans to support mining ventures during a bullish market period marked by high profitability. However, the subsequent transition to a bear market posed challenges for some miners in meeting their repayment obligations. Companies like Core Scientific and Iris Energy are among those that held rig-backed loans from NYDIG.