SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2023

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

Subsequent events have been evaluated through August 14, 2023, the date at which the condensed consolidated financial statements were available to be issued, and the Company has concluded that no such events or transactions took place that would require disclosure herein, except as stated directly below:

In August 2023, in connection with a non-binding term sheet that the Company entered into with NYDIG in June to effect a deleveraging transaction, the Company completed an electrical upgrade at its South Carolina facility increasing the capacity to 44 MW. Upon completion of this expansion, on August 10, 2023, the Company and NYDIG amended the NYDIG Hosting Agreements to increase the number of miners being hosted by Greenidge utilizing all of the expansion. The NYDIG Hosting Agreements were amended in furtherance of the broader transaction contemplated by the non-binding term sheet pursuant to which the Company would sell to NYDIG all of the upgraded mining facilities at the South Carolina site and would also subdivide and sell to NYDIG the approximately 25 acres of land on which the facilities are located. As the Company was still in the process of subdividing the 25 acre parcel, which is required to close the transaction pursuant to the non-binding term sheet after having completed the upgrade of the mining facilities, the parties have amended the existing NYDIG Hosting Agreements in the interim. In connection with amending the NYDIG Hosting Agreements, and in order to facilitate the transactions contemplated by the non-binding term sheet, NYDIG also agreed, among other things, to grant the Limited Waiver to the Company with respect to reducing the Company’s minimum cash requirement under the NYDIG Senior Secured Loan from $10 million to $6 million and to amend the NYDIG Senior Secured Loan and the Secured Promissory Note issued to B Riley Commercial (which NYDIG purchased from B Riley Commercial on July 20, 2023 at par) on or before August 21, 2023 to extend the waiver of the minimum cash requirement as well as to suspend interest and principal payments due under both the NYDIG Senior Loan and the B Riley Commercial Note until the earlier of (i) the completion of the transactions contemplated by the non-binding term sheet, or (ii)

December 29, 2023. The Company is actively working towards completing the subdivision of the 25 acre parcel on which the upgraded mining facilities are located so it can consummate the transaction contemplated by the non-binding term sheet, and although there can be no assurances that the Company will close such transaction, the Company currently anticipates that it will be able to do so in the fourth quarter of 2023 before the end of the calendar year.

Upon the closing of the transaction contemplated by the non-binding term sheet, the Company would retain approximately 150 acres of land at the site. In exchange for the sale to NYDIG of the upgraded South Carolina mining facilities and the subdivided approximate 25 acres of land, Greenidge would receive:

•Full relief from the Senior Secured Loan with NYDIG with remaining principal of approximately $17.7 million;

•Full relief from the B Riley Commercial Secured Promissory Note with remaining principal of approximately $5.6 million as of June 30, 2023, which NYDIG purchased from B. Riley Commercial on July 20, 2023 at par following Greenidge's principal payment to B. Riley Commercial, which reduced the principal balance to approximately $4.1 million;

•Relief from principal and interest payments between August 2023 and the earlier of closing of the sale or December 31, 2022; however, interest on the Senior Secured Loan and the Secured Promissory Note will accrue over that period;

•A cash payment of approximately $4.9 million, net of the accrued interest payments on the NYDIG Senior Loan and the B Riley Commercial Secured Promissory Note and certain transaction fees owed to NYDIG; and

•Bonus payments of up to approximately $2.6 million tied to completion of the expansion of the upgraded mining facility and uptime performance of the facility.