Greenidge Generation(US:GREE)2024-08-14 21:22Revenue Performance - Total revenue for the three months ended June 30, 2024, was $13.057 million, a decrease of 11% compared to $14.710 million for the same period in 2023[106]. - Total revenue decreased by $1.7 million, or 11%, to $13.1 million for the three months ended June 30, 2024[1]. - Total revenue for the six months ended June 30, 2024, was $32,390 million, an increase of 8% from $29,867 million in the same period of 2023[134]. Datacenter Hosting Revenue - Datacenter hosting revenue decreased by 31% to $6.645 million from $9.660 million year-over-year[106]. - Datacenter hosting revenue decreased by $3.0 million, or 31%, to $6.6 million for the three months ended June 30, 2024, primarily due to the sale of the South Carolina Facility[115]. - Datacenter hosting revenue for the first six months of 2024 was $15.8 million, a decrease from $16.6 million in the same period of 2023, primarily due to the sale of the South Carolina facility[143]. Cryptocurrency Mining Revenue - Cryptocurrency mining revenue increased by 20% to $4.775 million compared to $3.980 million in the prior year[106]. - Cryptocurrency mining revenue increased by $0.8 million, or 20%, to $4.8 million, with approximately 69% of the increase attributed to the rise in average bitcoin price[112]. - Cryptocurrency mining revenue increased by $1,343 million, or 13%, reaching $11,774 million, primarily due to a 134% increase in the average bitcoin price[140]. Operating Loss and Expenses - Operating loss improved to $(3.700) million, a 44% reduction from $(6.637) million in the prior year[106]. - Selling, general, and administrative expenses were reduced by $2.872 million, a 41% decrease from $7.049 million in the same quarter of 2023[106]. - Selling, general and administrative expenses decreased by $2.9 million, or 41%, to $4.2 million, mainly due to reductions in payroll and restructuring costs[119]. - Operating loss for Q2 2024 was $3.7 million, an improvement of $2.9 million or 44% compared to a loss of $6.6 million in Q2 2023[122]. - Adjusted net loss for Q2 2024 was $5.5 million, a decrease of $4.2 million or 44% from a net loss of $9.8 million in Q2 2023[125]. - Other expenses decreased by $1.3 million or 42% to $1.8 million in Q2 2024, primarily due to reduced interest expenses[123]. EBITDA and Adjusted EBITDA - Adjusted EBITDA loss from continuing operations improved to $(136) thousand, a significant reduction from $(2.371) million in the same quarter of 2023[106]. - EBITDA loss from continuing operations improved to $(415) thousand in Q2 2024 from $(3.5) million in Q2 2023, a positive variance of $3.1 million or 88%[131]. - Adjusted EBITDA (loss) from continuing operations improved to $2.5 million for the six months ended June 30, 2024, compared to a loss of $3.5 million in the prior year[155]. Bitcoin Mining Metrics - Average bitcoin price increased by 135% to $65,773, while bitcoin mining difficulty rose by 71% compared to the prior year[112]. - The cost to mine one bitcoin was $44,301, representing 67.7% of the value of each bitcoin mined, which was $65,411[114]. - The average efficiency of the miner fleet was 28.7 J/TH as of June 30, 2024, with no scheduled downtime reported[142]. - The total number of bitcoins produced decreased by 742, or 54%, to 626 bitcoins compared to 1,368 bitcoins in the previous year[140]. - As of June 30, 2024, the average cost to mine one bitcoin was $33,357, while the value of each bitcoin mined was $56,879, resulting in a cost-to-value ratio of 58.6%[142]. Cash Flow and Debt Management - As of June 30, 2024, the company had cash and cash equivalents of $10.3 million, down from $15.4 million at the beginning of the year[160]. - The company reduced its debt with NYDIG from $75.8 million to $17.3 million through a debt restructuring agreement[156]. - Net cash used for operating activities was $6.4 million for the six months ended June 30, 2024, compared to $2.8 million for the same period in 2023[162]. - The company generated net cash provided by financing activities of $7.0 million for the six months ended June 30, 2024, an increase from $5.9 million in the prior year[164]. Future Outlook and Strategic Initiatives - The company is actively pursuing acquisitions of properties with low-cost power to expand its AI/GPU data centers and bitcoin mining facilities[101]. - The company plans to migrate miners from third-party hosting to its own facilities, which is expected to enhance profitability[156]. - The company expects to require additional capital to fund expenses and support working capital needs, exploring options such as equity issuances and asset sales[156]. - The recent bitcoin halving in April 2024 reduced the mining reward from 6.25 bitcoin to 3.125 bitcoin, potentially impacting future profitability[157].