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Finger Lakes Bitcoin miner facing financial trouble

The Greenidge Generation plant in Torrey, NY.
Vaughn Golden
The Greenidge Generation plant in Torrey, NY.

Greenidge Generation’s facility along Seneca Lake in Yates County has been a focal point of opposition by environmental activists concerned about the industry’s potential to negatively impact the state’s climate goals. Earlier this year the Department of Environmental Conservation denied Greenidge’s application to renew air pollution permits needed to continue operating the Yates County facility, though the plant is allowed to continue operating as an appeal process proceeds.

Greenidge Generation, the cryptocurrency mining company that spurred environmental opposition in the Finger Lakes in recent years, is attempting to restructure debt amid financial troubles.

Earlier this week, the company announced it had executed a term sheet with one of its lenders, NYDIG, with the aim of restructuring millions of dollars of indebtedness.

Under the potential agreement, Greenidge would cede more than half of its cryptocurrency generating capacity to NYDIG in exchange for reducing its debt to the lender by $57 million to $68 million.

The announcement by Greenidge painted a dim outlook for the publicly traded firm’s financial situation, even if the debt restructuring deal would be struck.

“It is uncertain that any individual source of liquidity described above will be sufficient to address the Company's liquidity requirements; and, even if all of the potential sources of liquidity described above are available, they may not be sufficient to address the Company's liquidity requirements, which is also dependent on volatile bitcoin and natural gas prices. Should the Company be unsuccessful in completing any further financing, the Company would continue to be cash flow negative and would need to curtail or cease operations,” the company’s announcement read in part.

Cryptocurrency mining operations have been severely impacted by rising natural gas prices and depressed Bitcoin prices.

Vaughn Golden has been reporting across New York since 2016. Working as a freelancer while studying journalism and economics at Ithaca College, Vaughn has reported for a number of outlets including the Albany Times Union, New York Post, and NPR among others. Prior to coming to WSKG full-time, Vaughn was a reporter for the Watertown Daily Times. Vaughn now covers government and politics for WSKG.