Greenidge Generation(US:GREE)2024-11-07 22:11Revenue Performance - Total revenue for the three months ended September 30, 2024, was $12.351 million, a decrease of 41% compared to $20.879 million for the same period in 2023[134]. - Datacenter hosting revenue decreased by 47% to $6.490 million from $12.136 million year-over-year[134]. - Cryptocurrency mining revenue fell by 51% to $3.267 million compared to $6.602 million in the prior year[134]. - Total revenue for the three months ended September 30, 2024, was $12.35 million, a decrease of $8.53 million or 41% compared to $20.88 million in the same period of 2023[1]. - Datacenter hosting revenue decreased by $5.65 million or 47% to $6.49 million, while cryptocurrency mining revenue fell by $3.34 million or 51% to $3.27 million[1]. - Total revenue for the nine months ended September 30, 2024, was $44.741 million, a decrease of $6.005 million or 12% compared to $50.746 million in the same period of 2023[166]. - Datacenter hosting revenue decreased by $6.493 million or 23% to $22.247 million, while cryptocurrency mining revenue decreased by $1.992 million or 12% to $15.041 million[166]. Operating Costs and Expenses - Overall operating costs and expenses decreased by 45% to $16.961 million from $31.000 million in the same quarter of 2023[134]. - Total operating costs and expenses were $54.867 million, down $18.304 million or 25% from $73.171 million in the prior year[166]. - Total cost of revenue (exclusive of depreciation) decreased by $6.05 million or 39% to $9.30 million, with a cost of revenue as a percentage of total revenue increasing to 75.3%[1][2]. - Selling, general and administrative expenses were reduced by $2.932 million, totaling $3.730 million compared to $6.662 million in the same quarter of 2023[134]. - Selling, general and administrative expenses decreased by $9.3 million, or 41%, to $13.4 million for the nine months ended September 30, 2024, due to reductions in payroll, professional fees, and insurance expenses[179][180]. Net Loss and Adjusted Metrics - The net loss from continuing operations for the three months ended September 30, 2024, was $6.324 million, a reduction of 52% from $13.161 million in the prior year[134]. - Adjusted net loss for Q3 2024 was $5.6 million, compared to $6.9 million in the same period in 2023, reflecting an 18% improvement[158]. - Net loss from continuing operations for Q3 2024 was $6.3 million, down 52% from a net loss of $13.2 million in Q3 2023[157]. - The operating loss improved to $10.126 million, a reduction of $12.299 million or 55% compared to an operating loss of $22.425 million in the previous year[166]. - Adjusted EBITDA from continuing operations was $2.411 million, compared to a loss of $3.453 million in the prior year, reflecting an improvement of $5.864 million[166]. - Adjusted EBITDA loss from continuing operations was $(0.11) million in Q3 2024, compared to a gain of $0.013 million in Q3 2023, reflecting a significant decline[164]. Mining Operations and Performance - The average bitcoin price increased by 117% to $61,023, while the average cost to mine one bitcoin was $49,038, representing 79.6% of its value[1][2]. - The total bitcoins produced decreased by 81% to 166 bitcoins, with datacenter hosting producing 113 bitcoins and cryptocurrency mining producing 53 bitcoins[1][2]. - The average active hash rate for company-owned miners decreased by 26% to 791,533 EH/s, while hosted miners decreased by 41% to 1,663,884 EH/s[1]. - The average difficulty of bitcoin mining increased by 72% compared to the prior year, contributing to the decline in cryptocurrency mining revenue[171]. - The average cost to mine one bitcoin for the nine months ended September 30, 2024, was $36,414, representing 63.2% of the bitcoin's value of $57,628 mined during the same period[173]. Liquidity and Financing - Cash and cash equivalents as of September 30, 2024, were $7.6 million, with ongoing reliance on debt and equity financing to support operations[195]. - Debt restructuring reduced the balance with NYDIG from $75.8 million to $17.3 million, significantly improving liquidity[195]. - The company expects to generate proceeds from the sale of approximately 153 acres of land in South Carolina, which is classified as held for sale, to further enhance liquidity within the next twelve months[195]. - The company entered into an Equity Exchange Agreement with Infinite Reality, issuing 180,000 shares valued at approximately $1.5 million and a warrant for 180,000 shares at an exercise price of $7.00[195]. - Total contractual obligations and commitments as of September 30, 2024, amounted to $127,806 thousand, with debt payments totaling $86,008 thousand[197]. Other Financial Metrics - Total other expense decreased by $1.2 million, or 40%, to $1.8 million in Q3 2024, attributed to reduced interest expenses[154]. - The effective tax rate for Q3 2024 was a 2% benefit, lower than the statutory rate of 21%, due to a full valuation allowance on deferred tax assets[155]. - Loss from discontinued operations decreased by $1.0 million, or 96%, to $0.0 million in Q3 2024, primarily due to the closure of operations[159]. - The company recognized a gain on digital assets of $0.2 million for the three months ended September 30, 2024, due to fair value measurement[1]. - A loss on the sale of assets was recorded at $0.7 million for the three months ended September 30, 2024, with no such loss in the prior year[1].