Greenidge’s average monthly cash burn rate in the past two months was approximately $8 million. That is typically used to describe the rate at which a company spends capital to finance overhead before generating a profit or loss from operations. About $5.5 million of that cost was associated with principal and interest payments to NYDIG. The firm expects to have a similar cash burn rate and similar payments to NYDIG in December, according to the filing.
The Fairfield, Connecticut-based miner has a natural gas plant that powers its Bitcoin mining facility in Dresden, New York. It is one of the earliest and largest crypto-mining firms in the state. While Greenidge’s current operations remain intact, New York Governor Kathy Hochul signed one of the most restrictive laws in the US on crypto mining last month with a two-year moratorium on new permits from the miners that are powered by fossil fuel.
Bitcoin is a liquidity barometer. When prices multiply, the fear of missing out creates demand for leveraged plays on the price of both bitcoin and altcoins. It encourages miners to leverage up to increase their chances of securing additional coins and it attracts new funding mechanisms to ensure maximum leverage is made available to the most risk-tolerant traders as the promise of massive gains proves siren-like. During crypto winters, this entire process goes into reverse and many operations go bust.Click HERE to subscribe to Fuller Treacy Money Back to top