Greenidge Generation Holdings Inc., 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.”
