Greenidge Generation (NASDAQ:GREE) stock is falling on Wednesday as investors brace for a potential bankruptcy filing.
According to a press release from the company, Greenidge is facing uncertainty concerning its ability to continue operations. This comes as Greenidge’s cash burn hits $8 million per month, with $5.5 million of that being principal and interest payments to lender NYDIG.
As a result of this news, the company’s board has been discussing the future of Greenidge Generation. These discussion have included the possibility of a voluntary bankruptcy filing for the crypto miner.
NYDIG and Greenidge have a new financing agreement that could prevent this bankruptcy. If Greenidge completes the debt restructuring, it could result in enough future liquidity for the company to continue business until a potential Bitcoin (BTC-USD) rebound occurs.
GREE Investors Fear Bankruptcy
Today’s news brings with its strong trading of GREE stock as investors sell shares. As of this writing, more than 477,000 shares have changed hands. That’s quickly approaching the company’s daily average trading volume of 487,000 shares.
To go along with that, GREE stock is down 3.6% as of Wednesday afternoon. The crypto miner’s stock is also down 98.3% since the start of the year.
Investors looking for more of the latest stock market news will want to keep reading!
InvestorPlace is home to all of the biggest stock stories traders need to know about on Wednesday! A few examples include what’s happening with shares of Tesla (NASDAQ:TSLA), Core Scientific (NASDAQ:CORZ) and Wells Fargo (NYSE:WFC) stock moving today. You can find out more at the links below!
More Wednesday Stock Market News
- Cathie Wood Keeps Buying Tesla (TSLA) Stock
- CORZ Stock Plummets as Core Scientific Files for Chapter 11 Bankruptcy
- WFC Stock Alert: What to Know as Wells Fargo Settles With CFPB
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
