Reports SG&A reductions of $6.4 million in
the first six months of 2024 vs. 2023
Expects a significant boost in earnings in
subsequent quarters due to ongoing cost savings and introduction of
new offerings
Greenidge Generation Holdings Inc. (NASDAQ: GREE) (“Greenidge”)
or (the “Company”), a vertically integrated cryptocurrency
datacenter and power generation company, announced financial and
operating results for the second quarter 2024 and provided an
update on the actions the Company has taken to continue the
transformation of the business.
Second Quarter 2024 Financial
Results:
- Total revenue of $13.1 million;
- Net loss from continuing operations of $5.5 million;
- EBITDA loss of $0.4 million;
- Adjusted EBITDA loss of $0.1 million;
- Cryptocurrency datacenter self-mining revenue of $4.8
million;
- Cryptocurrency datacenter hosting revenue of $6.6 million;
and
- Power and capacity revenue of $1.5 million.
Year to Date 2024 Financial
Results:
- Total revenue of $32.4 million;
- Net loss from continuing operations of $9.5 million;
- EBITDA of $0.6 million;
- Adjusted EBITDA of $2.5 million;
- Cryptocurrency datacenter self-mining revenue of $11.8
million;
- Cryptocurrency datacenter hosting revenue of $15.8 million;
and
- Power and capacity revenue of $4.5 million.
2024 Highlights:
- SG&A year to date decreased by $6.4 million in 2024 vs.
2023, from $16.1 million to $9.7 million
- Retention of 41 Bitcoin as of August 13, 2024.
- Reduction in go-forward operating costs for Bitcoin mining
operations as a result of relocating owned miners to facilities
managed by Greenidge in Mississippi and North Dakota.
- Significant expansion of power capacity, with the addition of
100 MW of low-cost power capacity:
- Secured access to 60 MW in South Carolina for development of
datacenter;
- Commenced 7.5 MW of mining at acquired site in Mississippi with
additional 25 MW of mining capacity;
- Commenced 7.5 MW of mining at leased site in North Dakota;
- Launch of Greenidge Pod X, a best-in-class crypto mining
infrastructure solution;
- Launch of new self-mined bitcoin retention strategy to further
drive growth;
- Commencement of GPU datacenter pilot program;
- Commencement of EPCM and O&M offerings; and
- Evaluation of future sites with significant low-cost power
capacity.
Greenidge ended the second quarter with $10.3 million of cash
and $69.2 million of debt at book value.
In the first six months of 2024, Greenidge has made significant
efforts to reduce costs, leading to SG&A reductions of $6.4
million from 2023. Greenidge also reported a reduction in operating
costs for its Bitcoin mining operations in Q2 2024. This reduction
resulted from the relocation of the majority of Greenidge’s mining
fleet from a third-party operated site with monthly operational
fees to facilities managed by Greenidge directly. These strategic
buildouts and moves position the Company well for the future and
will positively impact its profitability compared to maintaining
operations at the third-party site.
Greenidge’s relocation of owned miners from third-party operated
sites to Greenidge-operated facilities resulted in the Company’s
miners being non-operational for a period, which impacted Q2
earnings. As anticipated, Greenidge’s successful planned June plant
outage also impacted Q2 earnings but positions the Company to
continue its industry leading uptime in the quarters ahead.
Despite these temporary disruptions, Greenidge anticipates a
significant boost in earnings in subsequent quarters due to the
ongoing cost savings. The Company also continues to explore
additional opportunities to further streamline operations and
improve efficiency across its business units.
Greenidge CEO Jordan Kovler commented: “The actions we took in
the first half of 2024 created a strong foundation that positions
Greenidge to grow efficiently moving forward as we continue to
scale our business. This quarter, we followed through on our
promises to significantly reduce SG&A, expand our power
capacity and obtain and build new sites with low power where we can
deploy our own miners. With increased access to capital and a
robust operational footprint across the country, we see numerous
paths ahead to increase shareholder value and to build on the new
offerings we introduced this quarter.”
Kovler added: “Over the last several months, we not only
continued to expand our AI infrastructure and data center
footprint, but we also made remarkable progress evolving our
business with the launch of the Greenidge Pod X, the introduction
of our new EPCM business and the decision to maintain a treasury of
bitcoin. With the halving and many strategic decisions to increase
long-term value for the sake of short-term profit now behind us, we
believe Greenidge is well positioned to capitalize on the
opportunities ahead that will continue to add value to our
story.”
About Greenidge Generation Holdings Inc. Greenidge
Generation Holdings Inc. (NASDAQ: GREE) is a vertically integrated
power generation company, focusing on cryptocurrency mining,
infrastructure development, engineering, procurement, construction
management, operations and maintenance of sites.
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 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.
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 the non-GAAP
operating performance measures of Adjusted EBITDA. Adjusted EBITDA
is defined as earnings before interest, taxes and depreciation and
amortization, which is then adjusted for stock-based compensation
and other special items determined by management, including, but
not limited to, business expansion costs, impairments of long-lived
assets, gains or losses from the sales of long-lived assets,
remeasurement of environmental liabilities, restructuring and loss
on extinguishment of debt. These non-GAAP financial measures are a
supplement to and not a substitute for or superior to, Greenidge’s
results presented in accordance with U.S. GAAP. The non-GAAP
financial measures presented by Greenidge may be different from
non-GAAP financial measures presented by other companies.
Specifically, Greenidge believes the non-GAAP information provides
useful measures to investors regarding Greenidge’s financial
performance by excluding certain costs and expenses that Greenidge
believes are not indicative of its core operating results. The
presentation of these non-GAAP financial measures 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.
Because of these limitations, EBITDA and Adjusted EBITDA should
not be considered in isolation or as a substitute for performance
measures calculated in accordance with GAAP. Greenidge compensates
for these limitations by relying primarily on its GAAP results and
using EBITDA and Adjusted EBITDA on a supplemental basis.
Three Months Ended
Six Months Ended
Amounts denoted in millions
June 30, 2024
June 30, 2024
Net loss from continuing operations
$
(5.5
)
$
(9.5
)
Interest expense, net
1.8
3.6
Depreciation
3.3
6.5
EBITDA (loss) from continuing
operations
(0.4
)
0.6
Stock based compensation
0.3
1.4
Gain on sale of assets
—
—
Change in fair value of warrant assets
—
0.4
Impairment of long-lived assets
—
0.2
Adjusted EBITDA (loss) from continuing
operations
$
(0.1
)
$
2.5
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240814930768/en/
Investors Nick Ratti 315-536-2359 nratti@greenidge.com
investorrelations@greenidge.com
Media Longacre Square Partners Kate Sylvester / Liz
Shoemaker 646-386-0091 greenidge@longacresquare.com
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