Greenidge Generation, the Seneca Lake cryptocurrency mining operation that has been in the crosshairs of environmentalists, has worked out a deal to keep it financially afloat.
The company announced in a press release this week that it’s worked out a deal with one of its creditors to restructure millions of dollars in debt. Greenidge has been negatively impacted by the declining price of Bitcoin and increasing costs of natural gas, which it uses to fire the power plant.
As part of the deal, Greenidge will cede profits from about two-thirds of its Bitcoin mining rigs to one of its creditors, NYDIG, for five years. In exchange, the firm will reduce Greenidge’s debt by about $59 million.
"The debt restructuring we've announced today significantly improves our balance sheet and provides us with a clear path forward as we enter 2023," said Dave Anderson, chief executive officer of Greenidge wrote in a statement.
Greenidge also indicated that it’s exploring opening a third facility, which it would also use to further reduce its debt burden with NYDIG.
"We are actively working to secure and develop a new mining site, in partnership with NYDIG, which will reduce our debt by an additional $10 million,” Anderson’s statement continued.
Environmentalists fought the expansion of Bitcoin mining at Greenidge’s Seneca Lake facility, arguing the operation works against the state’s climate goals. The firm is in the process of appealing a Department of Environmental Conservation ruling to prevent renewal of its air pollution permits last year.
