Third Quarter 2023 Highlights
- Total revenue was $20.9
million
- Cryptocurrency datacenter hosting revenue was $12.1 million, and Cryptocurrency datacenter
self-mining revenue was $6.6
million
- GAAP net loss from continuing operations was $13.2 million
- Break-even Adjusted EBITDA from continuing operations
- 235 bitcoins were produced from self-mining
- Operated active mining capacity of approximately 4.6 EH/s from
42,300 miners as of September 30,
2023
- Cash of $10.7 million as of
September 30, 2023
Adjusted EBITDA from continuing operations is a non-GAAP
measure. See the table attached to this press release for a
reconciliation from GAAP to non-GAAP measures and "Use of Non-GAAP
Information" below for more details.
FAIRFIELD, Conn., Nov. 14,
2023 /PRNewswire/ -- Greenidge Generation Holdings
Inc. (NASDAQ: GREE) ("Greenidge" or the "Company"), a vertically
integrated cryptocurrency datacenter and power generation company,
today announced financial and operating results for the third
quarter of 2023.
"Our results for the third quarter of 2023 reflect our shift to
a stable revenue mix among hosting, self-mining, and energy," said
Dave Anderson, Chief Executive
Officer of Greenidge. "During the third quarter of 2023, we have
continued to take steps to significantly reduce our debt and
SG&A costs so as to better position the Company for future
growth."
Third Quarter 2023 Financial Results
Greenidge's revenue for the third quarter was $20.9 million, down 5% compared to the prior
year. Cryptocurrency datacenter hosting revenue was $12.1 million as compared to none in the prior
year. Cryptocurrency datacenter self-mining revenue was
$6.6 million, down 64% versus the
prior year as Greenidge transitioned its capacity towards
datacenter hosting during the first half of 2023. Power and
capacity revenue was $2.1 million,
down 41% compared to the prior year.
As of September 30, 2023,
Greenidge datacenter operations consisted of approximately 42,300
miners with approximately 4.6 EH/s of combined capacity for both
datacenter hosting and cryptocurrency mining, of which 32,100
miners, or 3.4 EH/s, is associated with datacenter hosting and
10,200 miners, or 1.2 EH/s, is associated with Greenidge's
cryptocurrency mining.
Net loss from continuing operations was $13.2 million for the third quarter as compared
to $23.9 million in the third quarter
of the prior year. Greenidge broke even on Adjusted EBITDA for the
third quarter compared to the prior year third quarter Adjusted
EBITDA loss of $3.7 million.
As of September 30, 2023,
Greenidge had cash of $10.7 million
and debt balance of $94.0 million,
which was reduced from $157.5 million
as of December 31, 2022.
About Greenidge Generation Holdings Inc.
Greenidge
Generation Holdings Inc. (NASDAQ: GREE) is a vertically integrated
cryptocurrency datacenter and power generation company.
Use of Non-GAAP Information
To provide investors
and others with additional information regarding Greenidge's
financial results, Greenidge has disclosed in this press release a
certain non-GAAP operating performance measure of Adjusted EBITDA
(loss) from continuing operations. Adjusted EBITDA (loss) from
continuing operations is defined as (loss) income from continuing
operations before taxes plus interest and depreciation and
amortization, which is then adjusted for stock-based compensation,
other special items determined by management, including, but not
limited to business expansion costs, impairments of long-lived
assets, remeasurement of environmental liabilities, restructuring,
debt extinguishment and costs to restructure debt. This non-GAAP
financial measure is a supplement to and not a substitute for or
superior to, the Company's results presented in accordance with
U.S. GAAP. The non-GAAP financial measure presented by the Company
may be different from non-GAAP financial measures presented by
other companies. Specifically, the Company believes the non-GAAP
information provides a useful measure to investors regarding the
Company's financial performance by excluding certain costs and
expenses that the Company believes are not indicative of its core
operating results. The presentation of this non-GAAP financial
measure is not meant to be considered in isolation or as a
substitute for results or guidance prepared and presented in
accordance with U.S. GAAP. A reconciliation of the non-GAAP
financial measure to U.S. GAAP results is included herein.
Forward-Looking Statements
This press release includes
certain statements that may constitute "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. All statements other than statements of historical fact
are forward-looking statements for purposes of federal and state
securities laws. These forward-looking statements involve
uncertainties that could significantly affect Greenidge's financial
or operating results. These forward-looking statements may be
identified by terms such as "anticipate," "believe," "continue,"
"foresee," "expect," "intend," "plan," "may," "will," "would,"
"could," and "should," and the negative of these terms or other
similar expressions. Forward-looking statements are based on
current beliefs and assumptions that are subject to risks and
uncertainties and are not guarantees of future performance.
Forward-looking statements in this press release include, among
other things, statements regarding the business plan, business
strategy and operations of Greenidge in the future. In addition,
all statements that address operating performance and future
performance, events or developments that are expected or
anticipated to occur in the future are forward-looking statements.
Forward-looking statements are subject to a number of risks,
uncertainties and assumptions. Matters and factors that could cause
actual results to differ materially from those expressed or implied
in such forward-looking statements include but are not limited to
the matters and factors described in Part I, Item 1A. "Risk
Factors" of Greenidge's Annual Report on Form 10-K, Part II, Item
1A. "Risk Factors" of Greenidge's Quarterly Report on Form-10-Q,
and its other filings with the Securities and Exchange Commission.
Consequently, all of the forward-looking statements made in this
press release are qualified by the information contained under this
caption. No assurance can be given that these are all of the
factors that could cause actual results to vary materially from the
forward-looking statements in this press release. You should not
put undue reliance on forward-looking statements. No assurances can
be given that any of the events anticipated by the forward-looking
statements will transpire or occur, or if any of them do occur, the
actual results, performance, or achievements of Greenidge could
differ materially from the results expressed in, or implied by, any
forward-looking statements. All forward-looking statements speak
only as of the date of this press release and Greenidge does not
assume any duty to update or revise any forward-looking statements
included in this press release, whether as a result of new
information, the occurrence of future events, uncertainties or
otherwise, after the date of this press release.
For further information, please contact:
Investor Relations
investorrelations@greenidge.com
Media Inquiries
media@greenidge.com
Greenidge Generation Holdings Inc. and
Subsidiaries
|
Condensed Consolidated Statements of
Operations
|
For the Three Months Ended September 30, 2023 and
2022
|
Amounts denoted in thousands
|
|
|
Three Months Ended September
30,
|
|
|
2023
|
|
2022
|
REVENUE:
|
|
|
|
|
Datacenter
hosting
|
|
$
12,136
|
|
$
—
|
Cryptocurrency
mining
|
|
6,602
|
|
18,272
|
Power and
capacity
|
|
2,141
|
|
3,613
|
Total
revenue
|
|
20,879
|
|
21,885
|
OPERATING COSTS AND
EXPENSES:
|
|
|
|
|
Cost of revenue -
hosting services (exclusive of depreciation and
amortization)
|
|
9,432
|
|
—
|
Cost of revenue - self
mining (exclusive of depreciation and amortization)
|
|
4,458
|
|
14,675
|
Cost of revenue - power
and capacity (exclusive of depreciation and
amortization)
|
|
1,465
|
|
3,760
|
Selling, general and
administrative
|
|
6,662
|
|
7,789
|
Depreciation and
amortization
|
|
3,383
|
|
13,511
|
Impairment of
long-lived assets
|
|
4,000
|
|
—
|
Remeasurement of
environmental liability
|
|
1,600
|
|
—
|
Loss on sale of
assets
|
|
—
|
|
759
|
Total operating costs
and expenses
|
|
31,000
|
|
40,494
|
Loss from
operations
|
|
(10,121)
|
|
(18,609)
|
Other income (expense),
net:
|
|
|
|
|
Interest expense,
net
|
|
(3,040)
|
|
(5,430)
|
Other income,
net
|
|
—
|
|
126
|
Total other expense,
net
|
|
(3,040)
|
|
(5,304)
|
Net loss from
continuing operations
|
|
(13,161)
|
|
(23,913)
|
(Loss) income from
discontinued operations, net of tax
|
|
(1,078)
|
|
736
|
Net loss
|
|
$
(14,239)
|
|
$
(23,177)
|
|
|
|
|
|
Reconciliation of Net loss from continuing operations
to Adjusted EBITDA (loss) from Continuing
Operations:
|
Net loss from
continuing operations
|
|
$
(13,161)
|
|
$
(23,913)
|
Interest expense,
net
|
|
3,040
|
|
5,430
|
Depreciation and
amortization
|
|
3,383
|
|
13,511
|
EBITDA (loss) from
continuing operations
|
|
$
(6,738)
|
|
$
(4,972)
|
Stock-based
compensation
|
|
482
|
|
361
|
Loss on sale of
assets
|
|
—
|
|
759
|
Impairment of
long-lived assets
|
|
4,000
|
|
—
|
Remeasurement of
environmental liability, after tax
|
|
1,600
|
|
—
|
Restructuring
costs
|
|
669
|
|
—
|
Expansion
costs
|
|
—
|
|
183
|
Adjusted EBITDA (loss) from continuing
operations
|
|
$
13
|
|
$
(3,669)
|
Greenidge Generation Holdings Inc. and
Subsidiaries
|
Condensed Consolidated Balance
Sheets
|
September 30, 2023 and December 31,
2022
|
Amounts denoted in thousands
|
|
September 30,
2023
|
|
December 31,
2022
|
|
(Unaudited)
|
|
ASSETS
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
Cash, restricted cash
and cash equivalents
|
$
10,687
|
|
$
15,217
|
Digital
assets
|
—
|
|
348
|
Accounts Receivable,
net of allowance for doubtful accounts of $0 at
September 30, 2023 and December 31, 2022
|
275
|
|
2,696
|
Prepaid expenses and
other assets
|
8,017
|
|
6,266
|
Emissions and carbon
offset credits
|
1,597
|
|
1,260
|
Income tax
receivable
|
857
|
|
798
|
Current assets held
for sale
|
507
|
|
6,473
|
Total current
assets
|
21,940
|
|
33,058
|
LONG-TERM
ASSETS:
|
|
|
|
Property and
equipment, net
|
47,777
|
|
130,417
|
Other long-term
assets
|
800
|
|
292
|
Long-term assets held
for sale
|
19,295
|
|
—
|
Total
assets
|
89,812
|
|
163,767
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
Accounts
payable
|
13,664
|
|
9,608
|
Accrued emissions
expense
|
7,924
|
|
6,052
|
Accrued
expenses
|
8,016
|
|
11,327
|
Short-term
environmental liability
|
1,700
|
|
600
|
Long-term debt,
current portion
|
2,365
|
|
67,161
|
Current liabilities
held for sale
|
1,732
|
|
3,974
|
Total current
liabilities
|
35,401
|
|
98,722
|
LONG-TERM
LIABILITIES:
|
|
|
|
Long-term debt, net of
current portion and deferred financing fees
|
87,085
|
|
84,585
|
Environmental
liabilities
|
27,733
|
|
27,400
|
Other long-term
liabilities
|
4,820
|
|
107
|
Total
liabilities
|
155,039
|
|
210,814
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
Total stockholders'
equity
|
(65,227)
|
|
(47,047)
|
Total liabilities and
stockholders' equity
|
$
89,812
|
|
$
163,767
|
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SOURCE Greenidge Generation Holdings Inc.