Reports SG&A reductions of
Expects a significant boost in earnings in subsequent quarters due to ongoing cost savings and introduction of new offerings
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 andNorth 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 ;
-
Secured access to 60 MW in
- 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
In the first six months of 2024, Greenidge has made significant efforts to reduce costs, leading to SG&A reductions of
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
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
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
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
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.
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Three Months
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Six Months
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Amounts denoted in millions |
|
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||||
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|
|
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||||
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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 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240814930768/en/
Investors
315-536-2359
nratti@greenidge.com
investorrelations@greenidge.com
Media
646-386-0091
greenidge@longacresquare.com
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