Shearman & Sterling advised its client, Greenidge Generations Holdings Inc., in a restructuring of a material portion of its debt and its business. In a novel transaction, the company, which has historically been mining bitcoin at two facilities in upstate New York and South Carolina, transferred a significant portion of its mining rigs to NYDIG, its equipment lender, in exchange for significant debt reduction and 5-year hosting arrangements with NYDIG. Under the hosting arrangement, Greenidge and its subsidiaries will provide infrastructure and facilities to operate the mining rigs for NYDIG and will be paid hosting fees and profit sharing, and the hosting business will constitute a material change to Greenidge’s business strategy.
In addition, Greenidge restructured its debt with B. Riley Financial to provide additional flexibility and extended the maturity of that debt by commitments to purchase Greenidge Class A common stock by B. Riley and from a large shareholder, Atlas Holdings.
Greenidge is a vertically-integrated cryptocurrency datacenter and power generation company The restructuring was announced on Jan. 31, 2023 in a press release.