Greenidge Announces Expansion of Power Capacity with 40 MW of Low-Cost Power in Key Territories
- Expansion into Mississippi and North Dakota boosts Greenidge's mining capacity to 40 MW
- Engineering, Procurement, and Construction Management contracts in North Dakota and Texas aim to drive revenue growth
- CEO Jordan Kovler highlights the focus on growth and job creation in local communities
- Monthly Bitcoin production data reveals consistent performance and hash rate expansion plans
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Insights
The acquisition of a new property in Mississippi and the lease in North Dakota by Greenidge Generation Holdings Inc. represents a strategic expansion in the energy-intensive field of cryptocurrency mining. With the increase in mining capacity, the company is positioning itself to capitalize on the demand for Bitcoin mining, which requires significant electrical power. The expansion to 40 MW of low-cost power is a critical move as electricity costs are one of the primary expenses in cryptocurrency mining operations.
Expanding into areas with lower energy costs can significantly improve profit margins. However, the volatility of the cryptocurrency market poses risks. The profitability of these expansions is closely tied to the price of Bitcoin and the competitive landscape of mining difficulty. Investors should monitor the stability of cryptocurrency markets and regulatory environments, as they can substantially impact the company's operations and financial performance.
Greenidge's focus on increasing its self-mining capabilities and enhancing its hash rate is a direct response to the competitive nature of the cryptocurrency mining industry. By increasing its hash rate to an anticipated 2.8 EH/s, Greenidge aims to maintain a competitive edge. Hash rate is a critical metric in cryptocurrency mining, indicating the amount of computational power being contributed to the network and a higher hash rate increases the likelihood of earning block rewards in the form of newly minted bitcoins.
The decision to report Bitcoin mined on a monthly basis is an important transparency measure for shareholders. It allows stakeholders to track the company's operational performance and aligns with industry trends towards greater disclosure. However, potential investors should be aware of the inherent risk due to Bitcoin's price volatility and the potential for regulatory changes affecting the cryptocurrency sector.
The announcement of job creation in Mississippi and North Dakota as a result of Greenidge's expansion could have a positive impact on local economies. Job creation is often seen as a benefit of such industrial expansions, contributing to economic development and potentially leading to increased support from local stakeholders. However, the sustainability of these jobs is contingent upon the long-term success and stability of Greenidge's operations, which in turn depends on the volatile cryptocurrency market and regulatory factors.
Furthermore, the energy consumption of cryptocurrency mining operations has been a topic of environmental concern. While Greenidge's focus on low-cost power may imply the use of renewable energy sources or more efficient mining operations, it is crucial for local stakeholders to consider the environmental implications of such expansions. The balance between economic benefits and environmental impact will be a key factor in assessing the long-term viability of Greenidge's business model in these communities.
Acquires 12-Acre Property in
Secures Lease in
Latest Expansions Underscore Continued Focus and Implementation of Strategic Growth Initiatives to Increase Profitability
Greenidge purchased 12 acres with 32.5 MW of mining capacity in
Greenidge CEO Jordan Kovler commented: “By expanding our self-mining capabilities in key territories, Greenidge will be able to continue increasing our mining load flexibility and optimizing our operations to supercharge growth. We are also pleased that these expansions will create new jobs for local residents in both
In January, Greenidge produced approximately 150 bitcoin, of which 50 bitcoin were produced by Greenidge owned miners and 100 were produced through our datacenter hosting. Greenidge’s hash rate in January was approximately 2.4 EH/s, with 0.8 EH/s from Greenidge owned miners and 1.6 EH/s from our datacenter hosting. In February Greenidge produced approximately 128 bitcoin, of which 41 bitcoin were produced by Greenidge owned miners and 87 were produced through our datacenter hosting. Greenidge’s hash rate in February was approximately 2.6 EH/s, with 0.8 EH/s from Greenidge owned miners and 1.8 EH/s from our datacenter hosting. Greenidge’s hash rate is expected to increase to 2.8 EH/s by April 1 as a result of deploying over 2,100 of its miners (adding 0.2 EH/s of self-mining). Moving forward, Greenidge will report its Bitcoin mined on a monthly basis, in response to shareholder feedback.
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 for the year ended December 31, 2022 and Quarterly Reports on Form 10-Q for the periods ended March 31, 2023, June 30, 2023 and September 30, 2023, as well as statements about or relating to or otherwise affected by the completion of management’s final review of the financial results and Greenidge’s other closing procedures. 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.
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Investors
Nick Ratti
315-536-2359
nratti@greenidge.com
investorrelations@greenidge.com
Media
Longacre Square Partners
Charlotte Kiaie / Kate Sylvester
646-386-0091
greenidge@longacresquare.com
Source: Greenidge Generation Holdings Inc.
FAQ
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