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Bitcoin miner Greenidge confirms its participation in non-binding debt restructuring deal with NYDIG

In 2022 bitcoin miners are definitely going to be hit hard by financial problems as the price of bitcoin continues to slide down and the difficulty head is huge and in addition many interconnected mining bitcoin operations are dealing with defaults and bankruptcies. From this we can say that a misconception has spread in the mining industry. On Tuesday, New York-based Greenidge Generation detailed talks with NYDIG on a deal that raised concerns about $74 million in debt.

Over the past 6 months, shares of Greenidge (Nasdaq: GREE ) have declined against the US Dollar with a loss of 35.58% over the last 30 days according to GREE/USD market data and according to Greenidge it has ” entered into a memorandum of understanding with NYDIG to buy 2.8 EH/s of the company’s miners, while the New York-based farm says it plans to enter into an agreement with NYDIG.

We will see here that the agreement will be entered into for expansion of mining capacity to approx. which will result in a significant change in business strategy and will be largely owned by Greenidge instead of operating miners operating under NYDIG. Will operate the miners. NYDIG is said to have detailed its plans to reduce Greenidge $74 million in debt, according to the company. Greenidge agreed to reduce the debt by approximately $57 to $68 million in exchange for changing the mining signature and transferring all credit to NYDIG.

When it comes to lending to bitcoin mining operations, we can see that NYDIG has been a big supporter as it has lent over $300 million to a variety of Irish Energy and Core Scientific. All types of lending were secured by the special integrated circuit of miners including Stronghold, Greenidge, Argo blockchain. In addition to the reorganisation, Greenidge executives filed documents with the Securities and Exchange Commission that appear to show that the executives are taking an active position regarding the ability and timing of the voluntary bankruptcy filing itself and the bitcoin mining operation. that bankruptcy may occur if, of course, Greenidge finds that it lacks available liquidity and loses most of its remaining capital and fails to repay all loans or defaults on any contracts; If he goes, he definitely goes towards bankruptcy.

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