Business
Greenidge Generation Executes Term Sheet with Secured Lender NYDIG Regarding Debt Renegotiations; Provides Liquidity Update
FAIRFIELD, Conn., Dec. 20, 2022 /PRNewswire/ -- Lender Negotiations Update Entered into a non-binding term sheet with NYDIG regarding approximately $74
About this update from Greenidge Generation Holdings Inc.
[{"type":"text","content":"FAIRFIELD, Conn., Dec. 20, 2022 /PRNewswire/ --\nLender Negotiations Update\nEntered into a non-binding term sheet with NYDIG regarding approximately $74 million of debt contemplating the following terms:NYDIG would purchase miners with approximately 2.8 EH/s of mining capacityGreenidge would enter into a hosting agreement with NYDIG for approximately 2.8 EH/s of mining capacity, which would result in a material change to Greenidge's current business strategy and result in Greenidge largely operating miners owned by NYDIG, rather than operating miners owned by GreenidgeGreenidge may transfer certain credits, coupons and additional assets to NYDIG, including mining infrastructure awaiting deployment at potential mining sites, contingent upon Greenidge facilitating for NYDIG rights to a mining site within three months following the completion of debt restructuring and hosting agreementsIn exchange for the purchased miners and transfer of mining infrastructure and credits to NYDIG, NYDIG would agree to a reduction of approximately $57 to $68 million of debtGreenidge will be pledging substantially all of its unencumbered assets to NYDIG to secure the remaining balance of the loanGreenidge would retain ownership of miners with a capacity of 1.2 EH/sAny change in the terms reflected in this non-binding term sheet could have a material adverse effect on Greenidge and its stockholders and could further impact its liquidity and its ability to continue as a going concern. For additional information related to the NYDIG negotiations and Greenidge's liquidity update, certain additional risk factors are included herein that should be read in addition to those already provided in Greenidge's public filingsLiquidity Update\nThere remains uncertainty regarding Greenidge's financial condition and substantial doubt about its ability to continue as a going concernThe Company's average monthly cash burn rate during October and November 2022 was approximately $8 million, of which approximately $5.5 million per month was associated with principal and interest payments to NYDIG. Further, the Company expects to have a similar cash burn, and similar payments to NYDIG, during December 2022There is a substantial likelihood that Greenidge's independent auditors' opinion will reflect a going concern qualification in their audit report for the 2022 financial...