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Greenidge Generation Reports Financial and Operating Results for the Second Quarter 2024

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Greenidge Generation Holdings Inc. (NASDAQ: GREE) reported its Q2 2024 financial results, showing a total revenue of $13.1 million and a net loss from continuing operations of $5.5 million. The company highlighted significant cost reductions, with SG&A decreasing by $6.4 million in the first six months of 2024 compared to 2023. Greenidge expanded its power capacity by 100 MW, securing access to 60 MW in South Carolina and commencing mining operations in Mississippi and North Dakota.

The company launched new initiatives including Greenidge Pod X, a crypto mining infrastructure solution, and a GPU datacenter pilot program. Despite temporary disruptions due to miner relocation and a planned plant outage, Greenidge expects improved earnings in future quarters due to ongoing cost savings and new offerings.

Greenidge Generation Holdings Inc. (NASDAQ: GREE) ha riportato i risultati finanziari per il secondo trimestre del 2024, evidenziando un fatturato totale di 13,1 milioni di dollari e una perdita netta dalle operazioni continuative di 5,5 milioni di dollari. L'azienda ha sottolineato significative riduzioni dei costi, con le spese generali e amministrative (SG&A) in calo di 6,4 milioni di dollari nei primi sei mesi del 2024 rispetto al 2023. Greenidge ha ampliato la sua capacità energetica di 100 MW, garantendo l'accesso a 60 MW in Carolina del Sud e avviando operazioni di mining nel Mississippi e nel Dakota del Nord.

L'azienda ha lanciato nuove iniziative tra cui Greenidge Pod X, una soluzione per infrastrutture di mining crypto, e un programma pilota di datacenter GPU. Nonostante le interruzioni temporanee dovute al trasferimento dei miner e a una pianificata chiusura dello stabilimento, Greenidge prevede un miglioramento dei risultati nei prossimi trimestri grazie ai continui risparmi sui costi e alle nuove offerte.

Greenidge Generation Holdings Inc. (NASDAQ: GREE) informó sobre sus resultados financieros del segundo trimestre de 2024, mostrando unos ingresos totales de 13,1 millones de dólares y una pérdida neta de operaciones continuas de 5,5 millones de dólares. La compañía destacó reducciones significativas de costos, con SG&A disminuyendo en 6,4 millones de dólares en los primeros seis meses de 2024 en comparación con 2023. Greenidge amplió su capacidad energética en 100 MW, asegurando acceso a 60 MW en Carolina del Sur y comenzando las operaciones de minería en Mississippi y Dakota del Norte.

La empresa lanzó nuevas iniciativas, incluyendo Greenidge Pod X, una solución de infraestructura de minería cripto, y un programa piloto de centro de datos GPU. A pesar de las interrupciones temporales debido al reubicamiento de mineros y una parada planificada de la planta, Greenidge espera una mejora en las ganancias en los próximos trimestres debido a los continuos ahorros de costos y nuevas ofertas.

Greenidge Generation Holdings Inc. (NASDAQ: GREE)는 2024년 2분기 재무 결과를 보고하며 총 수익 1,310만 달러지속 운영에서의 순손실 550만 달러를 기록했다고 발표했습니다. 회사는 상당한 비용 절감을 강조하며, 2023년 대비 2024년 상반기 SG&A가 640만 달러 감소했다고 밝혔습니다. Greenidge는 100 MW의 전력 용량을 확대하고, 사우스캐롤라이나에서 60 MW에 대한 접근을 확보하며 미시시피와 노스다코타에서 채굴작업을 시작했습니다.

회사는 새로운 이니셔티브를 출시했으며, Greenidge Pod X라는 크립토 채굴 인프라 솔루션과 GPU 데이터센터 파일럿 프로그램을 포함합니다. 채굴기 이전과 계획된 공장 정전으로 인해 일시적인 중단이 있었음에도 불구하고, Greenidge는 미래 분기에 더욱 개선된 수익을 기대하고 있으며, 지속적인 비용 절감과 새로운 제안 덕분에 기대하고 있습니다.

Greenidge Generation Holdings Inc. (NASDAQ: GREE) a présenté ses résultats financiers pour le deuxième trimestre de 2024, montrant un chiffre d'affaires total de 13,1 millions de dollars et une perte nette des opérations continues de 5,5 millions de dollars. L'entreprise a souligné des réductions de coûts significatives, avec des SG&A en baisse de 6,4 millions de dollars au cours des six premiers mois de 2024 par rapport à 2023. Greenidge a élargi sa capacité énergétique de 100 MW, garantissant l'accès à 60 MW en Caroline du Sud et commençant ses opérations de minage dans le Mississippi et le Dakota du Nord.

L'entreprise a lancé de nouvelles initiatives, notamment Greenidge Pod X, une solution d'infrastructure de minage crypto, et un programme pilote de datacenter GPU. Malgré des perturbations temporaires dues à la relocalisation des mineurs et à une interruption planifiée de l'usine, Greenidge attend une amélioration des bénéfices dans les trimestres à venir grâce aux économies continues et aux nouvelles offres.

Greenidge Generation Holdings Inc. (NASDAQ: GREE) berichtete über die Finanzzahlen für das zweite Quartal 2024 und wies Gesamtumsätze von 13,1 Millionen Dollar sowie einen Nettoverlust aus fortgeführten Betrieben von 5,5 Millionen Dollar aus. Das Unternehmen hob signifikante Kostenreduzierungen hervor, wobei die Verwaltungskosten (SG&A) in den ersten sechs Monaten 2024 im Vergleich zu 2023 um 6,4 Millionen Dollar gesenkt wurden. Greenidge hat seine Energieerzeugung um 100 MW erweitert, erhielt Zugang zu 60 MW in South Carolina und nahm den Bergbau in Mississippi und North Dakota auf.

Das Unternehmen startete neue Initiativen, darunter Greenidge Pod X, eine Krypto-Mining-Infrastruktur-Lösung, sowie ein Pilotprogramm für GPU-Datenzentren. Trotz vorübergehender Unterbrechungen aufgrund der Verlagerung von Minern und einer geplanten Stilllegung des Werks erwartet Greenidge in den kommenden Quartalen verbesserte Ergebnisse dank laufender Kosteneinsparungen und neuer Angebote.

Positive
  • SG&A expenses reduced by $6.4 million in the first six months of 2024 compared to 2023
  • Expansion of power capacity by 100 MW, including 60 MW in South Carolina
  • Launch of Greenidge Pod X, a new crypto mining infrastructure solution
  • Commencement of GPU datacenter pilot program
  • Introduction of EPCM and O&M offerings
  • Retention of 41 Bitcoin as of August 13, 2024
  • Reduction in go-forward operating costs for Bitcoin mining operations
Negative
  • Net loss from continuing operations of $5.5 million in Q2 2024
  • EBITDA loss of $0.4 million in Q2 2024
  • Adjusted EBITDA loss of $0.1 million in Q2 2024
  • Temporary disruption in mining operations due to relocation of miners
  • Impact on Q2 earnings due to planned June plant outage

Insights

Greenidge's Q2 2024 results show mixed signals. While the company reported a net loss of $5.5 million and an Adjusted EBITDA loss of $0.1 million, there are positive indicators. The $6.4 million reduction in SG&A expenses year-to-date is significant, demonstrating effective cost management. The relocation of miners to company-managed facilities should lead to reduced operating costs, potentially improving future profitability.

However, the total debt of $69.2 million against cash reserves of $10.3 million raises concerns about the company's financial flexibility. The diversification into GPU datacenter operations and new offerings like Greenidge Pod X could provide new revenue streams, but their impact remains to be seen. Investors should monitor the company's ability to translate cost savings and new initiatives into profitability in the coming quarters.

Greenidge's strategic shift in its Bitcoin mining operations is noteworthy. The retention of 41 Bitcoin as of August 13, 2024, signals a new approach to potentially capitalize on future price appreciation. This strategy, coupled with the relocation of miners to lower-cost facilities, could enhance profitability, especially considering the recent Bitcoin halving event.

The expansion of power capacity by 100 MW across multiple locations is a significant move that could boost mining capabilities and revenue. The launch of Greenidge Pod X, a crypto mining infrastructure solution, demonstrates the company's efforts to diversify its offerings within the crypto space. However, the cryptocurrency market's volatility and regulatory uncertainties remain key risk factors that investors should consider when evaluating Greenidge's long-term prospects in this sector.

Greenidge's vertical integration model, combining cryptocurrency mining with power generation, offers a unique value proposition. The power and capacity revenue of $1.5 million in Q2 and $4.5 million year-to-date demonstrates the potential of this diversified approach. The significant expansion of power capacity, particularly the 60 MW secured in South Carolina, positions the company for growth in both mining and potential energy sales.

The company's focus on low-cost power sources across multiple states could provide a competitive advantage in the energy-intensive cryptocurrency mining industry. However, investors should be aware of potential regulatory challenges related to energy consumption in cryptocurrency mining. The company's ability to balance power generation, cryptocurrency operations and environmental considerations will be important for long-term success in this evolving landscape.

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

DRESDEN, N.Y.--(BUSINESS WIRE)-- 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

 

 

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

Source: Greenidge Generation Holdings Inc.

FAQ

What was Greenidge Generation's (GREE) total revenue for Q2 2024?

Greenidge Generation (GREE) reported a total revenue of $13.1 million for Q2 2024.

How much did Greenidge (GREE) reduce its SG&A expenses in the first half of 2024?

Greenidge (GREE) reduced its SG&A expenses by $6.4 million in the first six months of 2024 compared to the same period in 2023.

What new initiatives did Greenidge (GREE) launch in Q2 2024?

In Q2 2024, Greenidge (GREE) launched Greenidge Pod X, a crypto mining infrastructure solution, and commenced a GPU datacenter pilot program.

How much power capacity did Greenidge (GREE) add in 2024?

Greenidge (GREE) added 100 MW of low-cost power capacity in 2024, including 60 MW in South Carolina and operations in Mississippi and North Dakota.

What was Greenidge's (GREE) net loss from continuing operations in Q2 2024?

Greenidge (GREE) reported a net loss from continuing operations of $5.5 million in Q2 2024.

Greenidge Generation Holdings Inc.

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