Greenidge has completed a transaction selling its South Carolina bitcoin mining site to NYDIG, settling the remaining $21 million in secured debts owed to the bitcoin asset manager.
The New York-based power generator and mining operation said in a release on Wednesday that it will retain about 153 acres of land in Spartanburg, South Carolina, for possible future expansion after transferring 22 acres of developed mining facilities to NYDIG.
With the latest transaction, Greenidge said it has reduced its debt by $85.3 million this year, which accounted for over 54% of its total debt. It still has $72 million in unsecured debt, which matures in 2026.
NYDIG’s bitcoin mining business is also set to be more vertically integrated with the infrastructure acquisition. Since 2022, NYDIG has already taken over a significant amount of miners from several previously debt-laden mining firms that either defaulted on or decided to deleverage their miner financing loans with NYDIG.
In response to the broader crypto market downturn in December 2022, Greenidge initiated debt restructuring efforts with NYDIG to avoid bankruptcy.
In January, Greenidge transferred 2.8 EH/s of bitcoin miners to NYDIG, reducing outstanding loans to $21 million. As part of the agreement, it began providing hosting services for NYDIG’s miners, changing its business model and reducing its proprietary hashrate to 1.1 EH/s.
By August, Greenidge signed another term sheet with NYDIG to transfer its 44-megawatt site in Spartanburg in a bid to extinguish the remaining $21 million debt.
Since 2022, NYDIG has received at least another 9 EH/s of bitcoin miners from Core Scientific, Stronghold, and Iris Energy as part of their respective debt restructuring efforts, excluding undisclosed private deals.
Greenidge’s earnings reports for this year show that its bitcoin mining hosting segment mined 393 BTC, 527 BTC, and 622 BTC in the first three quarters, respectively, on behalf of NYDIG. Greenidge said the cost of revenue for its mining colocation segment was $50/mWh during Q3.
U.S. shipment records indicate that NYDIG imported S19XPs with an estimated amount of roughly 10,000 units in June, with a combined hashrate capacity of approximately 1.4 EH/s.
On Thursday, Greenidge announced a change in its leadership. The company said Jordan Kovler will replace David Anderson as Greenidge’s new CEO and Anderson will become the chairman of the board, replacing Timothy Fazio, who will remain a board director.