Greenidge Generation Reports Third Quarter 2023

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
[email protected]

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

SOURCE Greenidge Generation Holdings Inc.


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