Business
Greenidge Substantially Improves Liquidity Profile Following Sale and Deleveraging Transaction
Eliminates Remaining $21.8 Million of Secured Debt by Selling South Carolina Mining Site to NYDIG Will Receive Cash Consideration of Approximately $6.2
About this update from Greenidge Generation Holdings Inc.
[{"type":"text","content":"Eliminates Remaining $21.8 Million of Secured Debt by Selling South Carolina Mining Site to NYDIG\nWill Receive Cash Consideration of Approximately $6.2 Million in Connection with Transaction\nGreenidge has Reduced its Debt by a Total of $85.3 Million in 2023\nFAIRFIELD, Conn., Nov. 15, 2023 /PRNewswire/ -- Greenidge Generation Holdings Inc. (NASDAQ: GREE) (\"Greenidge\" or the \"Company\"), a vertically integrated cryptocurrency datacenter and power generation company, announced today that it had completed its previously announced sale and deleveraging transaction with NYDIG. In connection with the transaction, Greenidge eliminated the remaining $21.8 million of secured debt, and expects to receive cash payments totaling approximately $6.2 million with $4.5 million received at closing and $1.6 million in potential bonus payouts. In aggregate, the Company has reduced its debt by $85.3 million in 2023, representing over 54% of its total debt. \n\nGreenidge believes that its improved liquidity profile, combined with a more balanced mix of self-mining, hosting and energy revenue, positions the Company well for the future. Greenidge expects to continue to utilize its proven mining and power plant expertise to explore new opportunities to spearhead growth in the data center space.\nGreenidge will retain approximately 153 acres of land in Spartanburg for possible future data center development, after transferring 22 acres of expanded mining facilities to NYDIG in connection with the transaction.\n\"With the closing of this latest transaction, over the course of 2023, we have now cleared an aggregate of $85.3 million in secured debt and eliminated all liens, mortgages, and security interests on Greenidge's assets, leaving $72.2 million of unsecured debt, which does not mature until 2026. We also continue to operate a robust, advanced mining operation that is prepared to win as mining and data center development enters its exciting next phase,\" said Dave Anderson, Chief Executive Officer of Greenidge. \"NYDIG has been an important, strategic and collaborative partner for Greenidge, which today is in a far stronger position for the future as a result of this transaction.\"\nKEY DETAILS OF THE SOUTH CAROLINA SALE AND DELEVERAGING TRANSACTION\nIn August 2023, in connection with a non-binding term sheet that the Company entered into with N...