December 11, 2023

Greenidge Generation lost $107.9 million in the second quarter

Greenidge Generation lost $107.9 million in the second quarter

Mining company Greenidge Generation has revised its expansion plans into Texas amid its earnings for the second quarter.loss of $107.9 million

According to the press release, the losses arose mainly due to the revaluation of bitcoin reserves and environmental obligations.

Greenidge's income for the reporting period amounted to $31.2 million, the company mined about 621 BTC (230 BTC in June).

According to CEO Jeff Kirt, Bitcoin's roughly 60% drop in the quarter and a sharp rise in global energy prices have created a «challenging environment» for business.

«Sudden changes in the mining economyforced us to reorient our strategy towards a prudent priority on liquidity and capital preservation rather than aggressive growth. "As a result, we have decided to pause plans to develop some additional sites in the ERCOT market and instead focus on two existing sites in South Carolina and New York," Kirt said.

As of June 30, the Greenidge fleet had about 27,500 miners with a total hashrate of ~2.5 EH/s. The company expects computing power to reach ~3.6 EH/s by Q1 2023.

«Our development plan is fully fundedusing cash on the balance sheet, and almost all the necessary equipment has been purchased. The remaining infrastructure will require less than $7.5 million,” noted the head of the company.

Greenidge ended the quarter withliquid assets worth $67 million in the form of cash and cryptocurrency reserves. The company also made a deposit of about $92 million to miner manufacturer Bitmain to pay for purchased equipment. The company called the payments required to complete the contract “minimum.”

Mining data center of the company in New Yorklocated in its own hybrid power plant. In the second quarter, the facility's uptime was 100%, despite the need for periodic maintenance. Since the beginning of the year, the power plant has been idle for only seven hours, Greenidge stressed.

Recall that the work of this facility caused complaints from local activists and environmentalists, who are confident in its negative impact on the environment.

In 2022 The New York Supreme Court rejected the environmentalists' lawsuit against Greenidge. 

However, in early June, environmentalists and New York Assembly member Anna Kelles urged Gov. Kathy Hokul to revoke the company's mining permit.

Kelles sponsored a bill introducing a two-year moratorium on cryptocurrency mining using electricity generated from carbon sources. 

At the end of April, the document was supported in the lower house of the State Legislative Assembly, and on June 3 - in the Senate. The bill is being signed by the governor.

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