Greenidge Generation(US:GREE)2025-05-15 20:55Revenue Performance - For the three months ended March 31, 2025, total revenue was $19.24 million, a slight decrease of 0.5% compared to $19.33 million in the same period in 2024[126]. - Datacenter hosting revenue decreased by 36% to $5.83 million from $9.11 million, while cryptocurrency mining revenue fell by 40% to $4.23 million from $6.99 million[126]. - Power and capacity revenue increased significantly by 203% to $9.19 million from $3.04 million, representing 48% of total revenue[126][129]. - Datacenter hosting revenue decreased by $3.3 million, or 36%, to $5.8 million for the three months ended March 31, 2025, primarily due to a 44% increase in average mining difficulty and a 23% decrease in hosting MWhs[136]. - Power and capacity revenue surged by $6.2 million, or 203%, to $9.2 million during the same period, driven by increased demand and higher average power prices[137]. Mining Operations - The company operated approximately 30,100 miners with a combined capacity of 3.3 EH/s, including 18,200 miners for datacenter hosting and 11,900 miners for cryptocurrency mining[121][130]. - The average cost to mine one bitcoin increased to $68,489 for the three months ended March 31, 2025, compared to $27,396 in the same period of 2024, representing a 149% increase[134]. - The average bitcoin price increased by 76% to $93,516 compared to $53,260 in the previous year[129]. - Cryptocurrency mining revenue decreased by $2.8 million, or 40%, primarily due to a 44% increase in global bitcoin mining difficulty and the bitcoin halving in April 2024[131][132]. - The value of each bitcoin mined rose to $93,911 in Q1 2025, up from $52,231 in Q1 2024, indicating an increase of 79%[134]. Financial Performance - The company reported a net loss from operations of $5.56 million for the quarter, an increase of 41% compared to a net loss of $3.94 million in the same quarter of 2024[126]. - Operating costs increased by 3% to $21.63 million, with cost of revenue (exclusive of depreciation) rising by 22% to $14.99 million[126]. - The company reported an operating loss of $2.4 million for the three months ended March 31, 2025, compared to an operating loss of $1.7 million in the same period of 2024[145]. - The net loss increased to $5.6 million for the three months ended March 31, 2025, compared to a net loss of $3.9 million for the same period in 2024, reflecting a 43% increase[149]. - Selling, general and administrative expenses decreased by $2.6 million, or 49%, to $2.8 million for the three months ended March 31, 2025, due to reductions in insurance and payroll costs[140]. Cash Flow and Liquidity - As of March 31, 2025, the company had cash and cash equivalents of $4.9 million and digital assets valued at $8.4 million[155]. - The company anticipates that existing cash, digital assets, and proceeds from asset sales will be sufficient to fund operations for the next 12 months, contingent on bitcoin mining economics remaining stable[156]. - Operating cash flow for Q1 2025 was a net outflow of $5.7 million, compared to a net outflow of $5.1 million in Q1 2024, primarily due to environmental obligations and emissions liability settlements[163]. - Net cash provided by investing activities was $2.0 million for Q1 2025, a significant improvement from a net cash outflow of $1.0 million in Q1 2024, driven by bitcoin sales and insurance proceeds[164][165]. - Cash, cash equivalents, and restricted cash decreased to $4.9 million at the end of Q1 2025 from $8.6 million at the beginning of the year[162]. Future Plans and Strategic Moves - The company plans to acquire a 37.4-acre property in Columbus, Mississippi for $243,100, with an estimated project cost of $2.5 million for a substation to deliver 40 MW of power[122]. - The company appointed Christopher Krug and Kenneth Fearn to its Board of Directors, enhancing its expertise in public markets and real estate development[122]. - Total contractual obligations as of March 31, 2025, amounted to $133.3 million, with debt payments of $76.6 million due[160]. - The company anticipates liquidity challenges due to reliance on bitcoin mining economics, including hashprice and energy costs, which are difficult to predict[158]. - The company has not engaged in any financing activities that resulted in cash inflows or outflows during Q1 2025, contrasting with $7.0 million in financing activities in Q1 2024[166]. Environmental and Regulatory Considerations - Environmental obligations are estimated at $30.7 million, subject to various assumptions and potential adjustments[160]. - The company remains classified as an "emerging growth company," allowing it to rely on certain exemptions from disclosure requirements[171]. - The company has no off-balance sheet arrangements[170].