Greenidge Mining Rigs Sparkle with Core Scientific Partnership After Dark Times

With the market for Bitcoin currently in a bear trend, Greenidge, a major Bitcoin miner based in Upstate New York, has recently struggled. Last December the miner had “substantial doubt” about its capacity to continue, and down the line Greenidge was dealing with a potential bankruptcy. Despite these dark times, the company is managing to sparkle again through a new partnership with US-based miner Core Scientific.

Greenidge: Turning a Page in Bitcoin Mining Market

The one-year partnership with Core Scientific, alongside the planned installation of 1,500 company-owned miners, positions Greenidge to once again take a slice of the burgeoning Bitcoin mining market. Core Scientific, which operates facilities in Dalton, Georgia, and Calvert City, Kentucky, will offer up 6,914 of Greenidge’s mining rigs for the partnership.

Greenidge CEO Dave Anderson commented on the partnership by saying it “will significantly improve our profitability as we move forward”, adding that it was proof his company had “turned a page” from dark times.

While the idea of mining Bitcoin with expensive computers is a lucrative one in theory, in practice the current bear market has all-but erased profit, forcing a number of operations to close down and sell off their BTC rewards.

Greenidge’s Struggles: Debt, Cash, and GHG

In October, Greenidge had reportedly made an agreement to restructure its debt with fintech firm NYDIG, something which would have seen it shift from self-mining to hosting NYDIG’s rigs. This agreement would have seen NYDIG purchase miners with a capacity of 2.8 exahashes per second, and also see a $57 to $68 million reduction in debt — though no definitive documentation has yet been entered into.

Additionally, the company had only $22 million of cash, which is dangerously close to the $8 million it had spent the previous month. This is compounded by the fact that Greenidge currently needs $20 million of fresh funding just to avoid bankruptcy and keep the lights on into 2023.

Furthermore, last year the New York Department of Environmental Conservation (DEC) made the decision to deny Greenidge’s air permit renewal, citing issues with insufficient GreenHouse Gas (GHG) mitigation measures.

Greenidge-Core Deal: Igniting Bitcoin Miner Industry Resurgence

Despite the struggles Greenidge has faced, the partnership with Core Scientific looks set to bring the miner back into the spotlight, the likes of which had been shrouded in uncertainty and danger only a few months ago. While the bear market continues to show no signs of ceasing, this new deal may just be the spark that lights the fire of a Bitcoin miner industry resurgence.

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Steve Gates
Steve shows his dedication by holding 90% in cryptocurrencies, 10% to pay the bills.