Third Quarter 2022
- Revenue of $29.4 million for the
third quarter of 2022
- Produced approximately 866 bitcoin during the
third quarter
- Power plant uptime of 100.0% in third quarter, 99.9% YTD
through September 30, 2022, and 98.3%
LTM, including downtime for scheduled maintenance outages
- Mining capacity of approximately 2.4 EH/s from approximately
24,500 miners in service at September 30,
2022
- $39 million in cash and fair
value of cryptocurrency holdings at September 30, 2022
- GAAP net loss of $(23.1) million
for the quarter
- Adjusted EBITDA loss of $(2.3)
million for the quarter
- LTM Adjusted EBITDA of $28.4
million
October 2022 Operational
Update
- Produced approximately 269 bitcoin in October 2022
- Approximately 2.5 EH/s of mining capacity from approximately
24,500 miners in service as of October 31,
2022
- Power plant uptime of 97.8%, as a scheduled annual maintenance
period began at end of October
Adjusted net (loss) income, Adjusted EBITDA, Adjusted EBITDA
margin and last twelve months ("LTM") Adjusted EBITDA are non-GAAP
measures. See the tables 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,
2022 /PRNewswire/ -- Greenidge Generation Holdings
Inc. (NASDAQ: GREE) ("Greenidge"), a vertically integrated
cryptocurrency datacenter and power generation
company, today announced financial and operating results for the
third quarter of 2022 and provided an operational update for the
month ended October 31, 2022.
"Our third quarter results demonstrated our consistently strong
operational performance, as we increased our bitcoin
production by 39% over the second quarter's production due to our
focus on miner uptime, coupled with the reliability of controlling
our own power afforded by our vertical integration," said
Dave Anderson, Chief Executive
Officer of Greenidge. "The prolonged crypto winter
that has impacted our industry has caused us to reassess our
expansion plans while we work to improve our liquidity."
Third Quarter 2022 Financial Results
$ in thousands,
except Adjusted EBITDA margin
|
Q3 2022
|
|
Q3 2021
|
|
Variance
|
Total
Revenue
|
$
29,359
|
|
$
35,754
|
|
(18) %
|
Cryptocurrency
datacenter revenue
|
$
18,272
|
|
$
31,156
|
|
(41) %
|
Power and capacity
revenue
|
$
3,613
|
|
$
3,077
|
|
17 %
|
Adjusted EBITDA
(loss)
|
$
(2,288)
|
|
$
21,177
|
|
N/A
|
Adjusted EBITDA
margin
|
(7.8) %
|
|
59.2 %
|
|
|
Greenidge's revenue for the third quarter was $29.4 million, down 18% compared to the prior
year period. Cryptocurrency datacenter revenue for the
third quarter was $18.3 million, down
41% compared to the prior year period, and Power and capacity
revenue for the third quarter was $3.6
million, up 17% compared to the prior year period.
Greenidge's Support.com subsidiary, which was acquired in
September 2021, generated
approximately $7.5 million in third
quarter revenue, up 391% as about half of one month's operations of
Support.com was included in Greenidge's third quarter 2021 results.
Support.com revenue is included in Greenidge's Services and other
revenue line item on the income statement.
Greenidge produced approximately 866 bitcoin during
the third quarter of 2022, compared to 729 bitcoin in
the third quarter of 2021, and had approximately 24,500 miners in
service with approximately 2.4 EH/s of combined capacity as of
September 30, 2022.
Net loss was $(23.1) million for
the third quarter as compared to $(7.9)
million in the prior year period. Greenidge's third quarter
2022 results included $0.8 million of
losses on sales of assets, $0.2
million of merger and other costs and $0.2 million of expansion costs. Adjusted net
loss was $(22.0) million, compared to
Adjusted net income of $12.2 million
in the prior year period.
Adjusted EBITDA (loss) for the third quarter was $(2.3) million compared to the prior year period
of $21.2 million.
Greenidge ended the quarter with approximately $39 million of cash, restricted cash and fair
market value of cryptocurrency holdings, of which,
less than $1 million was
cryptocurrency holdings.
October 2022 Operational
Update
During the month of October 2022,
Greenidge produced approximately 269 bitcoin. As of
October 31, 2022, Greenidge had
approximately 2.5 EH/s of mining capacity from approximately 24,500
miners in service.
Power Plant Performance
Greenidge's mining operations in Dresden, NY are powered by the power plant
located at the facility. The plant is periodically offline for
scheduled maintenance outages and for unscheduled outages. In the
third quarter of 2022, the plant was offline for zero (0) hours,
representing an uptime, defined as running hours divided by total
hours in the period, of 100.0%. For the nine months ended
September 30, 2022, the plant was
offline for six (6) hours, representing an uptime of 99.9%. Offline
hours include hours the plant is offline for scheduled maintenance.
The plant's annual maintenance period began near the end of
October, resulting in the plant being offline for approximately two
days in October, representing an uptime of 97.8% for the month of
October and 99.2% for the ten months ended October 31, 2022. There is additional planned
time offline during the remainder of the fourth quarter 2022 of
approximately 13 days to complete the annual maintenance.
Development Plan Update
Greenidge previously disclosed that it expected to have 3.6 EH/s
of mining capacity by the first quarter of 2023. In an effort to
preserve its liquidity, Greenidge is currently reassessing its
expansion plans. As previously disclosed, during the second quarter
of 2022, the price of bitcoin decreased approximately
57% and the cost of natural gas increased approximately 53%. Given
the lack of meaningful improvement in the price of
bitcoin and the cost of natural gas coupled with
Greenidge's existing financial liabilities, there is uncertainty
regarding Greenidge's financial condition and substantial doubt
about its ability to continue as a going concern for a reasonable
period of time.
During the third quarter of 2022, Greenidge continued to reduce
its inventory of older, less efficient mining equipment in order to
free up mining capacity for newer more, efficient miners in its
order book. Greenidge expects this trend to continue through the
end of 2022, and may also consider other assets sales to further
enhance its liquidity position.
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 the financial results of Greenidge (the "Company"), the
Company has disclosed in this press release certain non-GAAP
operating performance measures of Adjusted EBITDA, Adjusted EBITDA
margin, LTM Adjusted EBITDA and Adjusted net (loss) income.
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 costs associated with the
merger with Support.com, costs of becoming a public company (which
included the costs of a corporate reorganization from an LLC,
public registration of shares and associated costs), business
expansion costs, impairments of goodwill and long-lived assets,
gains or losses from the sales of long-lived assets and
remeasurement of environmental liabilities. Adjusted EBITDA margin
is the percentage of Adjusted EBITDA of revenue. LTM Adjusted
EBITDA is Adjusted EBITDA over the last twelve-month period.
Adjusted net (loss) income is net (loss) income adjusted for the
after-tax impacts of special items determined by management,
including but not limited to costs associated with the merger with
Support.com, costs of becoming a public company (which included the
costs of a corporate reorganization from an LLC, public
registration of shares and associated costs), business expansion
costs, impairments of goodwill and long-lived assets, gains or
losses from the sale of long-lived assets and remeasurement of
environmental liabilities and tax charges for the recognition of
valuation allowances on deferred tax assets. These non-GAAP
financial measures are 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 measures 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 useful measures 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 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. Greenidge compensates for these
limitations by relying primarily on its GAAP results and using
EBITDA and Adjusted EBITDA on a supplemental basis. You should
review the reconciliation of net loss to EBITDA and Adjusted EBITDA
below and not rely on any single financial measure to evaluate
Greenidge's business.
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. You
should review the reconciliation of net loss to EBITDA and Adjusted
EBITDA below and not rely on any single financial measure to
evaluate Greenidge's business.
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, such as statements concerning
(i) future liquidity, (ii) potential asset sales, and (iii) hours
to complete annual maintenance, 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 for the year
ended December 31, 2021, in Part II,
Item 1A. "Risk Factors" of Greenidge's Quarterly Report on Form
10-Q for the period ended September 30,
2022, and its other filings with the Securities and Exchange
Commission, as well as statements about or relating to or otherwise
affected by the completion of management's final review of the
financial results and Greenidge's other closing procedures.
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
investorrelations@greenidge.com
Media Inquiries
media@greenidge.com
GREENIDGE GENERATION
HOLDINGS INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
|
Amounts denoted in
000s (except per share data)
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
2022
|
|
2021
|
REVENUE:
|
|
|
|
Cryptocurrency
datacenter
|
$
18,272
|
|
$
31,156
|
Power and
capacity
|
3,613
|
|
3,077
|
Services and
other
|
7,474
|
|
1,521
|
Total
revenue
|
29,359
|
|
35,754
|
OPERATING COSTS AND
EXPENSES:
|
|
|
|
Cost of revenue -
cryptocurrency datacenter (exclusive of depreciation and
amortization)
|
14,675
|
|
5,974
|
Cost of revenue - power
and capacity (exclusive of depreciation and
amortization)
|
3,760
|
|
2,831
|
Cost of revenue -
services and other (exclusive of depreciation and
amortization)
|
3,660
|
|
854
|
Selling, general and
administrative
|
10,240
|
|
5,446
|
Merger and other
costs
|
242
|
|
29,847
|
Depreciation and
amortization
|
13,835
|
|
2,667
|
Impairment of
long-lived assets
|
-
|
|
-
|
Remeasurement of
environmental liability
|
-
|
|
-
|
Total operating costs
and expenses
|
46,412
|
|
47,619
|
Loss from
operations
|
(17,053)
|
|
(11,865)
|
OTHER INCOME (EXPENSE),
NET:
|
|
|
|
Interest expense,
net
|
(5,430)
|
|
(1,009)
|
Interest expense -
related party
|
-
|
|
-
|
Gain on sale of digital
assets
|
-
|
|
18
|
Loss on sale of
assets
|
(759)
|
|
-
|
Other income (loss),
net
|
144
|
|
(29)
|
Total other expense,
net
|
(6,045)
|
|
(1,020)
|
Loss before income
taxes
|
(23,098)
|
|
(12,885)
|
Provision for income
taxes
|
79
|
|
(4,989)
|
Net loss
|
$
(23,177)
|
|
$
(7,896)
|
|
|
|
|
(Loss) earnings per
share:
|
|
|
|
Basic
|
$
(0.55)
|
|
$
(0.28)
|
Diluted
|
$
(0.55)
|
|
$
(0.22)
|
GREENIDGE GENERATION
HOLDINGS INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
Amounts denoted in
$000s
|
|
|
|
|
|
September 30,
2022
(Unaudited)
|
|
December 31,
2021
|
ASSETS
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
Cash and cash
equivalents
|
$
28,013
|
|
$
82,599
|
Restricted
cash
|
10,500
|
|
—
|
Short term
investments
|
—
|
|
496
|
Digital
assets
|
337
|
|
476
|
Accounts
receivable
|
4,704
|
|
5,524
|
Prepaid
expenses
|
9,694
|
|
9,146
|
Emissions and carbon
offset credits
|
1,259
|
|
2,361
|
Total current
assets
|
54,507
|
|
100,602
|
LONG-TERM
ASSETS:
|
|
|
|
Property and
equipment, net
|
246,071
|
|
217,091
|
Right-of-use
assets
|
222
|
|
1,472
|
Intangible assets,
net
|
2,841
|
|
3,537
|
Goodwill
|
3,062
|
|
3,062
|
Deferred tax
assets
|
29
|
|
15,058
|
Other long-term
assets
|
615
|
|
445
|
Total
assets
|
$
307,347
|
|
$
341,267
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
Accounts
payable
|
$
4,064
|
|
$
5,923
|
Accrued emissions
expense
|
5,226
|
|
2,634
|
Accrued
expenses
|
15,560
|
|
10,375
|
Income taxes
payable
|
185
|
|
2,481
|
Long-term debt,
current portion
|
73,218
|
|
19,577
|
Lease obligations,
current portion
|
112
|
|
736
|
Total current
liabilities
|
98,365
|
|
41,726
|
LONG-TERM
LIABILITIES:
|
|
|
|
Long-term debt, net of
current portion and deferred financing fees
|
96,515
|
|
75,251
|
Lease obligations, net
of current portion
|
137
|
|
193
|
Environmental
liability
|
22,415
|
|
11,306
|
Other long-term
liabilities
|
358
|
|
368
|
Total
liabilities
|
217,790
|
|
128,844
|
STOCKHOLDERS'
EQUITY
|
89,557
|
|
212,423
|
Total liabilities and
stockholders' equity
|
$
307,347
|
|
$
341,267
|
GREENIDGE GENERATION
HOLDINGS INC. AND SUBSIDIARIES
|
|
|
|
RECONCILIATION OF
NON-GAAP MEASURES
|
|
|
|
Amounts denoted in
000s
|
|
|
|
|
|
|
|
Reconciliation of
Net loss to Adjusted EBITDA (loss)
|
|
|
|
|
Three Months Ended
September 30,
|
|
2022
|
|
2021
|
Net loss
|
$
(23,177)
|
|
$
(7,896)
|
Provision for income
taxes
|
79
|
|
(4,989)
|
Interest expense,
net
|
5,430
|
|
1,009
|
Depreciation and
amortization
|
13,835
|
|
2,667
|
EBITDA
(loss)
|
$
(3,833)
|
|
$
(9,209)
|
Stock-based
compensation
|
361
|
|
411
|
Merger and other
costs
|
242
|
|
29,847
|
Expansion
costs
|
183
|
|
128
|
Loss on sale of
assets
|
759
|
|
—
|
Adjusted EBITDA
(loss)
|
$
(2,288)
|
|
$
21,177
|
Adjusted EBITDA
percentage of revenue
|
(7.8) %
|
|
59.2 %
|
|
|
|
|
Reconciliation of
Net income (loss) to Adjusted Net income (loss)
|
|
|
|
|
Three Months Ended
September 30,
|
|
2022
|
|
2021
|
Net loss
|
$
(23,177)
|
|
$
(7,896)
|
Merger and other costs,
after tax
|
242
|
|
19,969
|
Expansion costs, after
tax
|
183
|
|
93
|
Loss on sale of assets,
after tax
|
759
|
|
—
|
Adjusted net (loss)
income
|
$
(21,993)
|
|
$
12,166
|
Reconciliation of
Net (loss) income to LTM Adjusted EBITDA
|
|
Fiscal
Year
|
|
Nine Months
Ended:
|
|
Last 12
Months
|
|
2021
|
|
September 30,
2021
|
|
September 30,
2022
|
|
September 30,
2022
|
Net loss
|
$
(44,480)
|
|
$
(3,099)
|
|
$
(131,488)
|
|
$
(172,869)
|
Provision for income
taxes
|
408
|
|
(2,860)
|
|
15,200
|
|
18,468
|
Interest expense,
net
|
3,692
|
|
1,399
|
|
15,693
|
|
17,986
|
Depreciation and
amortization
|
8,855
|
|
5,531
|
|
22,680
|
|
26,004
|
EBITDA
(loss)
|
$
(31,525)
|
|
$
971
|
|
$
(77,915)
|
|
$
(110,411)
|
Stock-based
compensation
|
3,770
|
|
1,474
|
|
1,029
|
|
3,325
|
Merger and other
costs
|
32,272
|
|
31,095
|
|
940
|
|
2,117
|
Expansion
costs
|
2,362
|
|
128
|
|
2,375
|
|
4,609
|
Loss on sale of
assets
|
—
|
|
—
|
|
130
|
|
130
|
Goodwill
impairment
|
42,307
|
|
—
|
|
—
|
|
42,307
|
Impairment of
long-lived assets
|
—
|
|
—
|
|
71,500
|
|
71,500
|
Remeasurement of
environmental liabilities
|
3,688
|
|
—
|
|
11,109
|
|
14,797
|
Adjusted EBITDA
(loss)
|
$
52,874
|
|
$
33,668
|
|
$
9,168
|
|
$
28,374
|
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SOURCE Greenidge Generation Holdings Inc.