Greenidge Generation Announces Financial and Operating Results for Third Quarter 2022 and Provides Operational Update for October 2022
Greenidge Generation Holdings reported Q3 2022 revenue of $29.4 million, an 18% decline year-over-year, largely due to a 41% drop in cryptocurrency datacenter revenue. The company produced approximately 866 bitcoin, a 39% increase from Q2 2022. Despite maintaining 100% uptime for its power plant, net loss widened to $(23.1) million compared to $(7.9) million in Q3 2021. Cash holdings stood at $39 million. The firm is reassessing its expansion plans due to ongoing market challenges, including fluctuating bitcoin prices and rising natural gas costs.
- Produced approximately 866 bitcoin in Q3 2022, a 39% increase from Q2 2022.
- Maintained 100% power plant uptime in Q3 2022.
- Q3 2022 revenue fell 18% year-over-year.
- Cryptocurrency datacenter revenue declined by 41%.
- Net loss rose to $(23.1) million compared to $(7.9) million in Q3 2021.
- Financial uncertainty affects expansion plans, with substantial doubt about continuing as a going concern.
Third Quarter 2022
- Revenue of
$29.4 million for the third quarter of 2022 - Produced approximately 866 bitcoin during the third quarter
- Power plant uptime of
100.0% in third quarter,99.9% YTD through September 30, 2022, and98.3% LTM, including downtime for scheduled maintenance outages - Mining capacity of approximately 2.4 EH/s from approximately 24,500 miners in service at September 30, 2022
$39 million in cash and fair value of cryptocurrency holdings at September 30, 2022- GAAP net loss of
$(23.1) million for the quarter - Adjusted EBITDA loss of
$(2.3) million for the quarter - LTM Adjusted EBITDA of
$28.4 million
October 2022 Operational Update
- Produced approximately 269 bitcoin in October 2022
- Approximately 2.5 EH/s of mining capacity from approximately 24,500 miners in service as of October 31, 2022
- Power plant uptime of
97.8% , as a scheduled annual maintenance period began at end of October
Adjusted net (loss) income, Adjusted EBITDA, Adjusted EBITDA margin and last twelve months ("LTM") Adjusted EBITDA are non-GAAP measures. See the tables 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, 2022 /PRNewswire/ -- Greenidge Generation Holdings Inc. (NASDAQ: GREE) ("Greenidge"), a vertically integrated cryptocurrency datacenter and power generation company, today announced financial and operating results for the third quarter of 2022 and provided an operational update for the month ended October 31, 2022.
"Our third quarter results demonstrated our consistently strong operational performance, as we increased our bitcoin production by
Third Quarter 2022 Financial Results
$ in thousands, except Adjusted EBITDA margin | Q3 2022 | Q3 2021 | Variance | ||
Total Revenue | $ 29,359 | $ 35,754 | (18) % | ||
Cryptocurrency datacenter revenue | $ 18,272 | $ 31,156 | (41) % | ||
Power and capacity revenue | $ 3,613 | $ 3,077 | 17 % | ||
Adjusted EBITDA (loss) | $ (2,288) | $ 21,177 | N/A | ||
Adjusted EBITDA margin | (7.8) % | 59.2 % |
Greenidge's revenue for the third quarter was
Greenidge produced approximately 866 bitcoin during the third quarter of 2022, compared to 729 bitcoin in the third quarter of 2021, and had approximately 24,500 miners in service with approximately 2.4 EH/s of combined capacity as of September 30, 2022.
Net loss was
Adjusted EBITDA (loss) for the third quarter was
Greenidge ended the quarter with approximately
October 2022 Operational Update
During the month of October 2022, Greenidge produced approximately 269 bitcoin. As of October 31, 2022, Greenidge had approximately 2.5 EH/s of mining capacity from approximately 24,500 miners in service.
Power Plant Performance
Greenidge's mining operations in Dresden, NY are powered by the power plant located at the facility. The plant is periodically offline for scheduled maintenance outages and for unscheduled outages. In the third quarter of 2022, the plant was offline for zero (0) hours, representing an uptime, defined as running hours divided by total hours in the period, of
Development Plan Update
Greenidge previously disclosed that it expected to have 3.6 EH/s of mining capacity by the first quarter of 2023. In an effort to preserve its liquidity, Greenidge is currently reassessing its expansion plans. As previously disclosed, during the second quarter of 2022, the price of bitcoin decreased approximately
During the third quarter of 2022, Greenidge continued to reduce its inventory of older, less efficient mining equipment in order to free up mining capacity for newer more, efficient miners in its order book. Greenidge expects this trend to continue through the end of 2022, and may also consider other assets sales to further enhance its liquidity position.
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 the financial results of Greenidge (the "Company"), the Company has disclosed in this press release certain non-GAAP operating performance measures of Adjusted EBITDA, Adjusted EBITDA margin, LTM Adjusted EBITDA and Adjusted net (loss) income. 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 costs associated with the merger with Support.com, costs of becoming a public company (which included the costs of a corporate reorganization from an LLC, public registration of shares and associated costs), business expansion costs, impairments of goodwill and long-lived assets, gains or losses from the sales of long-lived assets and remeasurement of environmental liabilities. Adjusted EBITDA margin is the percentage of Adjusted EBITDA of revenue. LTM Adjusted EBITDA is Adjusted EBITDA over the last twelve-month period. Adjusted net (loss) income is net (loss) income adjusted for the after-tax impacts of special items determined by management, including but not limited to costs associated with the merger with Support.com, costs of becoming a public company (which included the costs of a corporate reorganization from an LLC, public registration of shares and associated costs), business expansion costs, impairments of goodwill and long-lived assets, gains or losses from the sale of long-lived assets and remeasurement of environmental liabilities and tax charges for the recognition of valuation allowances on deferred tax assets. These non-GAAP financial measures are 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 measures 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 useful measures 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 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. Greenidge compensates for these limitations by relying primarily on its GAAP results and using EBITDA and Adjusted EBITDA on a supplemental basis. You should review the reconciliation of net loss to EBITDA and Adjusted EBITDA below and not rely on any single financial measure to evaluate Greenidge's business.
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. You should review the reconciliation of net loss to EBITDA and Adjusted EBITDA below and not rely on any single financial measure to evaluate Greenidge's business.
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, such as statements concerning (i) future liquidity, (ii) potential asset sales, and (iii) hours to complete annual maintenance, 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, 2021, in Part II, Item 1A. "Risk Factors" of Greenidge's Quarterly Report on Form 10-Q for the period ended September 30, 2022, and its other filings with the Securities and Exchange Commission, 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.
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 (UNAUDITED) | |||
Amounts denoted in 000s (except per share data) | |||
Three Months Ended September 30, | |||
2022 | 2021 | ||
REVENUE: | |||
Cryptocurrency datacenter | $ 18,272 | $ 31,156 | |
Power and capacity | 3,613 | 3,077 | |
Services and other | 7,474 | 1,521 | |
Total revenue | 29,359 | 35,754 | |
OPERATING COSTS AND EXPENSES: | |||
Cost of revenue - cryptocurrency datacenter (exclusive of depreciation and | 14,675 | 5,974 | |
Cost of revenue - power and capacity (exclusive of depreciation and amortization) | 3,760 | 2,831 | |
Cost of revenue - services and other (exclusive of depreciation and amortization) | 3,660 | 854 | |
Selling, general and administrative | 10,240 | 5,446 | |
Merger and other costs | 242 | 29,847 | |
Depreciation and amortization | 13,835 | 2,667 | |
Impairment of long-lived assets | - | - | |
Remeasurement of environmental liability | - | - | |
Total operating costs and expenses | 46,412 | 47,619 | |
Loss from operations | (17,053) | (11,865) | |
OTHER INCOME (EXPENSE), NET: | |||
Interest expense, net | (5,430) | (1,009) | |
Interest expense - related party | - | - | |
Gain on sale of digital assets | - | 18 | |
Loss on sale of assets | (759) | - | |
Other income (loss), net | 144 | (29) | |
Total other expense, net | (6,045) | (1,020) | |
Loss before income taxes | (23,098) | (12,885) | |
Provision for income taxes | 79 | (4,989) | |
Net loss | $ (23,177) | $ (7,896) | |
(Loss) earnings per share: | |||
Basic | $ (0.55) | $ (0.28) | |
Diluted | $ (0.55) | $ (0.22) | |
GREENIDGE GENERATION HOLDINGS INC. AND SUBSIDIARIES | |||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||
Amounts denoted in | |||
September 30, 2022 (Unaudited) | December 31, 2021 | ||
ASSETS | |||
CURRENT ASSETS: | |||
Cash and cash equivalents | $ 28,013 | $ 82,599 | |
Restricted cash | 10,500 | — | |
Short term investments | — | 496 | |
Digital assets | 337 | 476 | |
Accounts receivable | 4,704 | 5,524 | |
Prepaid expenses | 9,694 | 9,146 | |
Emissions and carbon offset credits | 1,259 | 2,361 | |
Total current assets | 54,507 | 100,602 | |
LONG-TERM ASSETS: | |||
Property and equipment, net | 246,071 | 217,091 | |
Right-of-use assets | 222 | 1,472 | |
Intangible assets, net | 2,841 | 3,537 | |
Goodwill | 3,062 | 3,062 | |
Deferred tax assets | 29 | 15,058 | |
Other long-term assets | 615 | 445 | |
Total assets | $ 307,347 | $ 341,267 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
CURRENT LIABILITIES: | |||
Accounts payable | $ 4,064 | $ 5,923 | |
Accrued emissions expense | 5,226 | 2,634 | |
Accrued expenses | 15,560 | 10,375 | |
Income taxes payable | 185 | 2,481 | |
Long-term debt, current portion | 73,218 | 19,577 | |
Lease obligations, current portion | 112 | 736 | |
Total current liabilities | 98,365 | 41,726 | |
LONG-TERM LIABILITIES: | |||
Long-term debt, net of current portion and deferred financing fees | 96,515 | 75,251 | |
Lease obligations, net of current portion | 137 | 193 | |
Environmental liability | 22,415 | 11,306 | |
Other long-term liabilities | 358 | 368 | |
Total liabilities | 217,790 | 128,844 | |
STOCKHOLDERS' EQUITY | 89,557 | 212,423 | |
Total liabilities and stockholders' equity | $ 307,347 | $ 341,267 | |
GREENIDGE GENERATION HOLDINGS INC. AND SUBSIDIARIES | |||
RECONCILIATION OF NON-GAAP MEASURES | |||
Amounts denoted in 000s | |||
Reconciliation of Net loss to Adjusted EBITDA (loss) | |||
Three Months Ended September 30, | |||
2022 | 2021 | ||
Net loss | $ (23,177) | $ (7,896) | |
Provision for income taxes | 79 | (4,989) | |
Interest expense, net | 5,430 | 1,009 | |
Depreciation and amortization | 13,835 | 2,667 | |
EBITDA (loss) | $ (3,833) | $ (9,209) | |
Stock-based compensation | 361 | 411 | |
Merger and other costs | 242 | 29,847 | |
Expansion costs | 183 | 128 | |
Loss on sale of assets | 759 | — | |
Adjusted EBITDA (loss) | $ (2,288) | $ 21,177 | |
Adjusted EBITDA percentage of revenue | (7.8) % | 59.2 % | |
Reconciliation of Net income (loss) to Adjusted Net income (loss) | |||
Three Months Ended September 30, | |||
2022 | 2021 | ||
Net loss | $ (23,177) | $ (7,896) | |
Merger and other costs, after tax | 242 | 19,969 | |
Expansion costs, after tax | 183 | 93 | |
Loss on sale of assets, after tax | 759 | — | |
Adjusted net (loss) income | $ (21,993) | $ 12,166 | |
Reconciliation of Net (loss) income to LTM Adjusted EBITDA | |||||||
Fiscal Year | Nine Months Ended: | Last 12 Months | |||||
2021 | September 30, 2021 | September 30, 2022 | September 30, 2022 | ||||
Net loss | $ (44,480) | $ (3,099) | $ (131,488) | $ (172,869) | |||
Provision for income taxes | 408 | (2,860) | 15,200 | 18,468 | |||
Interest expense, net | 3,692 | 1,399 | 15,693 | 17,986 | |||
Depreciation and amortization | 8,855 | 5,531 | 22,680 | 26,004 | |||
EBITDA (loss) | $ (31,525) | $ 971 | $ (77,915) | $ (110,411) | |||
Stock-based compensation | 3,770 | 1,474 | 1,029 | 3,325 | |||
Merger and other costs | 32,272 | 31,095 | 940 | 2,117 | |||
Expansion costs | 2,362 | 128 | 2,375 | 4,609 | |||
Loss on sale of assets | — | — | 130 | 130 | |||
Goodwill impairment | 42,307 | — | — | 42,307 | |||
Impairment of long-lived assets | — | — | 71,500 | 71,500 | |||
Remeasurement of environmental liabilities | 3,688 | — | 11,109 | 14,797 | |||
Adjusted EBITDA (loss) | $ 52,874 | $ 33,668 | $ 9,168 | $ 28,374 | |||
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SOURCE Greenidge Generation Holdings Inc.
FAQ
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