Greenidge Generation Reports Financial and Operating Results for the Fourth Quarter and Full Year 2023
April 10 2024 - 8:00AM
Business Wire
Results Include Q4 Net Income of $2.7
million, Adjusted EBITDA of $3.6 million and Earnings Per Share of
$0.36
Ongoing Transformation and Growth of
Business Continues with Recent Expansion
Greenidge Generation Holdings Inc. (NASDAQ: GREE) (“Greenidge”),
a vertically integrated cryptocurrency datacenter and power
generation company, announced financial and operating results for
the fourth quarter and fiscal year ended December 31, 2023 and
provided an update on the actions the Company has taken to continue
the transformation of the business.
Fourth Quarter 2023 Financial
Results:
- Total revenue of $19.6 million;
- Net income from continuing operations of $2.7 million, above
guidance of $1.4 million to $2.4 million;
- Adjusted EBITDA of $3.6 million, above guidance of $1.6 million
to $2.6 million;
- Earnings per share of $0.36, above guidance of $0.18 to
$0.32;
- Cryptocurrency datacenter self-mining revenue of $7.2
million;
- Cryptocurrency datacenter hosting revenue of $10.7 million;
and
- Power and capacity revenue of $1.7 million.
Full Year 2023 Financial Results &
Highlights:
- Total revenue of $70.4 million;
- Debt reduced by 54% to $72 million from $157.3 million;
- Diversified revenue stream through hosting arrangements;
- Partnership announced with Infinite Reality, Inc. to enter AI
and HPC datacenter space;
- GAAP net loss from continuing operations of $29.0 million,
including $4.0 million of noncash impairment charges and $2.4
million from remeasurement of environmental liabilities;
- Adjusted EBITDA of $153,000; and
- Restructured executive team and reduced going-forward SG&A
costs.
Recent First Quarter 2024
Highlights:
- 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;
- Acquired site in Mississippi with 32.5 MW of mining
capacity;
- Leased site in North Dakota with 7.5 MW of mining
capacity;
- $6 million initial investment from Armistice Capital to support
ongoing business transformation;
- Ongoing deployment of 2,700 miners that were idle in Q4
2023;
- Continued to optimize SG&A structure;
- Development of GPU datacenter pilot program;
- Development of EPCM, O&M and GREE Pod offerings; and
- Evaluation of future sites with significant low-cost power
capacity.
Greenidge ended the fourth quarter with $13.3 million of cash
and $68.7 million of debt at book value. In aggregate, Greenidge
reduced its debt by $85.3 million in 2023, representing over 54% of
its total debt. For the full year of 2023, Greenidge produced 2,938
bitcoin, of which 891 were produced by Greenidge-owned miners and
2,047 were produced through our datacenter hosting.
Greenidge CEO Jordan Kovler commented: “The strong progress we
made throughout 2023 has helped us to better position Greenidge for
the future. After significantly reducing both our debt load and
future SG&A expenses, we focused our efforts this quarter on
the prudent deployment of idle miners as well as on increasing our
access to low-cost power for datacenter development and bitcoin
hosting and self-mining. Our team’s collective efforts enabled us
to deliver $0.36 in earnings per share and $3.6 million in adjusted
EBITDA in the fourth quarter, beating our previous guidance. We are
excited about the opportunities ahead as we continue to execute on
our plan to further expand our reach into low-cost power centers,
grow our EPCM business and AI infrastructure/data center footprint,
while developing innovative approaches to embrace increased
interest in Bitcoin.”
Greenidge will be presenting at the Planet MicroCap Showcase:
Vegas 2024 on May 1, 2024 at 4:00pm PST and will file an updated
investor presentation in advance of the event. In lieu of a
conference call, Greenidge CEO Jordan Kovler will be answering
questions at the conclusion of the presentation and holding 1x1
investor meetings. To attend and access the live presentation,
please visit
https://www.webcaster4.com/Webcast/Page/3026/50312.
About Greenidge Generation Holdings Inc.
Greenidge Generation Holdings Inc. (NASDAQ: GREE) is a
vertically integrated power generation company, focusing on
cryptocurrency mining, infrastructure development, engineering,
procurement, construction management, operations and maintenance of
sites.
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 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.
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 U.S. GAAP. The non-GAAP financial measures
presented by Greenidge may be different from non-GAAP financial
measures presented by other companies. Specifically, Greenidge
believes the non-GAAP information provides useful measures to
investors regarding Greenidge’s financial performance by excluding
certain costs and expenses that Greenidge 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.
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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version on businesswire.com: https://www.businesswire.com/news/home/20240409382976/en/
Investors Nick Ratti 315-536-2359 nratti@greenidge.com
investorrelations@greenidge.com Media Longacre Square
Partners Charlotte Kiaie / Kate Sylvester 646-386-0091
greenidge@longacresquare.com
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