The amount of debt that cryptocurrency mining company Greenidge Generation Holdings owes to investment management firm New York Digital Investment Group has been reduced by a considerable amount thanks to the efforts of Greenidge Generation Holdings. This reduction occurred as a result of Greenidge Generation Holdings’ successful negotiations with New York Digital Investment Group (NYDIG).

Greenidge signed a series of agreements with NYDIG on January 30 that related to the company’s secured debt. Pursuant to the terms of these agreements, Greenidge has transferred ownership of the Bitcoin mining equipment in addition to a number of credits to NYDIG. These contracts were part of Greenidge’s secured obligation to NYDIG and acted as a component of that loan. They were contained in the document. As a direct result of the transaction, the principal amount of debt owed to NYDIG was reduced from approximately $76 million to approximately $17 million, resulting in a total reduction of approximately $59 million in total debt. In addition to this, the portion of the debt representing accrued interest was reduced from approximately $17 million to approximately $76 million, a reduction of almost $29 million.

A clause in one of the agreements, known as the main secured loan agreement, makes it possible to make a voluntary repayment of the loan through the transfer of ownership of specific mining infrastructure assets. This clause is included in the contract because it is the senior secured loan contract. This is one of the three agreements that have been reached. As a result of the loan agreement, the principal amount of the debt is likely to be reduced to about $7 million; however, this reduction is contingent on NYDIG reaching an agreement that is legally enforceable.

According to information that had been made public in the past, Greenidge initially signed the agreement in mid-December 2022 with the expectation of reducing his debt to NYDIG by at least $57 million and possibly as much as $68 million. This information was made public in the past. This information had been made public at an earlier time.