Eliminates Remaining $21.8 Million of Secured Debt by Selling
South Carolina Mining Site to NYDIG
Will Receive Cash Consideration of
Approximately $6.2 Million in
Connection with Transaction
Greenidge has Reduced its Debt by a Total of
$85.3 Million in 2023
FAIRFIELD, 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.
Greenidge 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.
Greenidge 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.
"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."
KEY DETAILS OF THE SOUTH
CAROLINA SALE AND DELEVERAGING TRANSACTION
In August 2023, in connection with
a non-binding term sheet that the Company entered into with NYDIG
in June to effect the sale and deleveraging transaction, the
Company completed an electrical upgrade at its South Carolina facility increasing capacity to
44 MW, as well as the expansion of mining infrastructure to support
over 8,500 additional miners. Upon completion of this expansion,
and in furtherance of the broader transaction contemplated by the
non-binding term sheet, on August 10,
2023, the Company and NYDIG amended the NYDIG Hosting
Agreements at the South Carolina
facility to increase the number of miners being hosted by
Greenidge.
As a consequence of the closing of the sale and deleveraging
transaction:
- The approximately $17.7 million
principal amount outstanding under the Senior Secured Loan to NYDIG
has been extinguished;
- The approximately $4.1 million
principal amount outstanding under the Secured Promissory Note that
NYDIG purchased from B. Riley has been extinguished;
- All liens, mortgages, and security interests previously
securing the Senior Secured Loan and Secured Promissory Note have
been terminated; and
- Overall liquidity will increase as a result of approximately
$6.2 million in cash consideration,
including $1.6 million of bonus
payments anticipated to be received within 30 days of closing.
About Greenidge Generation Holdings Inc.
Greenidge Generation Holdings Inc. (NASDAQ: GREE) is a
vertically integrated cryptocurrency datacenter and
power generation company.
Forward-Looking Statements
This press release includes certain statements that may
constitute "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. All
statements other than statements of historical fact are
forward-looking statements for purposes of federal and state
securities laws. These forward-looking statements involve
uncertainties that could significantly affect Greenidge's financial
or operating results. These forward-looking statements may be
identified by terms such as "anticipate," "believe," "continue,"
"foresee," "expect," "intend," "plan," "may," "will," "would,"
"could," and "should," and the negative of these terms or other
similar expressions. Forward-looking statements are based on
current beliefs and assumptions that are subject to risks and
uncertainties and are not guarantees of future performance.
Forward-looking statements in this press release include, among
other things, statements regarding the business plan, business
strategy and operations of Greenidge in the future. In addition,
all statements that address operating performance and future
performance, events or developments that are expected or
anticipated to occur in the future are forward-looking statements.
Forward-looking statements are subject to a number of risks,
uncertainties and assumptions. Matters and factors that could cause
actual results to differ materially from those expressed or implied
in such forward-looking statements include but are not limited to
the matters and factors described in Part I, Item 1A. "Risk
Factors" of Greenidge's Annual Report on Form 10-K, Part II, Item
1A. "Risk Factors" of Greenidge's Quarterly Report on Form-10-Q,
and its other filings with the Securities and Exchange Commission.
Consequently, all of the forward-looking statements made in this
press release are qualified by the information contained under this
caption. No assurance can be given that these are all of the
factors that could cause actual results to vary materially from the
forward-looking statements in this press release. You should not
put undue reliance on forward-looking statements. No assurances can
be given that any of the events anticipated by the forward-looking
statements will transpire or occur, or if any of them do occur, the
actual results, performance, or achievements of Greenidge could
differ materially from the results expressed in, or implied by, any
forward-looking statements. All forward-looking statements speak
only as of the date of this press release and Greenidge does not
assume any duty to update or revise any forward-looking statements
included in this press release, whether as a result of new
information, the occurrence of future events, uncertainties or
otherwise, after the date of this press release.
For further information, please contact:
Investor
Relations
investorrelations@greenidge.com
Media Inquiries
media@greenidge.com
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SOURCE Greenidge Generation Holdings Inc.
