Another cryptocurrency miner may be headed for bankruptcy.
Bitcoin Minor Greenwich announced The board said it was actively discussing the possibility of voluntary bankruptcy and said there was “considerable doubt” about its ability to continue operations.
“Uncertainty remains in Greenwich’s financial situation and there is considerable doubt as to its ability to continue as a Going Concern,” the statement read.
The company claims its average monthly cash burn rate for October-November 2022 was $8 million, of which approximately $5.5 million was related to monthly principal and interest payments to NYDIG. I’m here.
Hoping to strengthen its finances, Greenidge also agreed to new repayment terms that would reduce its debt with NYDIG by approximately “$57 million to $68 million” of its total $74 million debt.
NYDIG is a crypto-focused financial services company that provides loans to Bitcoin miners, among many other services.
A new deal with major lender NYDIG sees miners transfer a large amount of mining-related assets, including mining machines and supporting infrastructure, for a total mining capacity of around 2.8 EH/s. .
As a result, “Greenidge will primarily operate NYDIG-owned miners, rather than operating Greenidge-owned miners,” said the mining company. report.
However, the infrastructure transfer is not complete and Greenidge is set to retain ownership of the mining infrastructure with a capacity of approximately 1.2 EH/s.
Greenridge says it will continue to actively seek to “raise additional equity capital and participate in discussions with lenders.”
Decryption We have reached out to both NYDIG and Greenidge for further comment.
bitcoin mining scene
2022 has not been a good year for the mining industry as the falling price of Bitcoin has left many companies in serious financial trouble and relying on leverage to build their operations and infrastructure.
rival Bitcoin Mining company Core Scientific has also seen its share price plunge well over 90% this year, a similar strategy You have to renegotiate with the lender.
In this case, the miners had B. Riley, a financial services firm, help with significant running costs.
