New York Digital Investment Group, one of the largest crypto lenders, is repossessing 27,403 machines from bankrupt miner Core Scientific Inc. as the company seeks to extinguish a loan, Bloomberg News reported. The mining company received a court approval to ship those machines to NYDIG in the coming months, eliminating a $38.6 million machine-backed loan. The collateral is worth about $25 million at the current market price, according to a Feb. 2 filing. NYDIG is one of the largest underwriters for loans backed by mining machines. It originated about $378 million in such loans to miners between October 2020 and May 2022, according to data compiled by TheMinerMag. The lender has received tens of thousands of machines as miners struggle to repay the loans. The lender received 26,200 machines from Stronghold Digital Mining Inc. to eliminate the miner’s $67 million debt and it is likely to take over another batch of machines from Iris Energy as the miner defaulted on $103 million machine-backed loans. The lender is on track to be a major miner as it repossesses Bitcoin mining facilities along with machines. NYDIG agreed to pay Greenidge Generation Holdings not only for its mining machines, but to operate them in exchange for debt reduction. The deal effectively made Greenidge, once the largest miner in the US, a hosting firm to run the lender’s machines.
