Miners Greenidge Generation and Core Scientific Enter Into a Partnership

Greenidge Generation, a mining company based in New York, has formed a partnership with competitor Core Scientific to host 6,914 Bitcoin mining devices at Core Scientific’s sites for one year. In addition, Greenidge will install another 1,500 of its own miners at its own facilities. Core Scientific operates facilities in Georgia, Kentucky, North Carolina, North Dakota, and Texas.

According to a press release on April 28th, Greenidge Generation stated that their partnership with Core Scientific marks a turning point and will significantly increase profitability. The CEO of the company, Dave Anderson, estimates that the deal will bring in an additional $7.5 million in annual profit.

In December 2022, Greenidge Generation had reached an agreement with lender NYDIG to sell most of the mining machines to pay off a $74 million debt. In a filing to the SEC, Greenidge did not rule out filing for bankruptcy due to environmental pressure and scrutiny from legislators.

However, in January 2023, the company restructured its loan debt with B. Riley and NYDIG, reducing it from $87 million to approximately $26 million.

The New York City Department of Environmental Protection denied Greenidge Generation an extension to operate its facilities in 2022, citing the firm’s failure to confirm the adoption of adequate measures to reduce greenhouse gas emissions.