Bitcoin mining firm Greenidge Generation came to an agreement with its lender, NYDIG, about restructuring $74.7 million of debt, though a bankruptcy is still on the cards, CoinDesk.com reported. Cash burn is unsustainable and the firm's board is engaged "in active discussions about the potential for, and timing of, a voluntary bankruptcy filing," Greenidge said in a filing yesterday with the U.S. Securities and Exchange Commission. If the deal with NYDIG is finalized, Greenidge still needs $20 million in fresh funding through 2023 to avoid bankruptcy. Under the deal, which is currently in the form of a non-binding term sheet, NYDIG will purchase 2.8 exahash per second (EH/s) worth of Greenidge's bitcoin mining machines, and extinguish $57 million to $68 million of the debt. That will leave Greenidge with 1.2 EH/s of machines, and the miner will also pledge the rest of its unencumbered assets to secure the rest of the loan, which will be somewhere between $6 million to $17 million. The loan in question had about $74.7 million outstanding as of Sept. 30. Prior to reaching a deal with NYDIG, Greenidge had estimated it would have to spend a minimum of $66.5 million in principal payments throughout 2023.
