Greenidge Generation(GREE) - 2025 Q1 - Quarterly Results

Company Announcement & Overview Greenidge Generation announced Q1 2025 financial and operational results, highlighting significant debt reduction, strategic board appointments, and progress on site acquisitions and sales, while exploring growth opportunities amid surging institutional and sovereign Bitcoin demand Introduction & Key Highlights Greenidge Generation Holdings Inc. reported Q1 2025 financial and operational results, detailing debt reduction, strategic board appointments, and site development initiatives - Greenidge Generation Holdings Inc. reported Q1 2025 financial and operational results as of March 31, 2025, providing updates on the company's growth outlook[1] - Through privately negotiated transactions, the company reduced senior unsecured debt to $60.2 million, a 16.6% reduction from the original $72.2 million total[3] - The board was reconstituted with the appointment of Kenneth Fearn and Christopher Krug as independent directors, bringing expertise in capital markets, real estate, and M&A to enhance strategic focus on value-maximizing transactions[9] - Greenidge entered an agreement to purchase a 37-acre site in Mississippi, projected to provide 40 MW of additional low-cost power by July 2026[9] Q1 2025 Financial and Operational Metrics | Metric | Q1 2025 Value | | :-------------------------- | :------------------- | | Total Revenue | $19.2 million | | Net Operating Loss | $5.6 million | | EBITDA | $0.4 million | | Adjusted EBITDA | $1.0 million | | Total Bitcoin Production | 112 BTC | First Quarter 2025 Financial Results This section details Greenidge's Q1 2025 financial performance, including revenue composition, operating loss, EBITDA, and key balance sheet items Summary of Financial Performance In Q1 2025, Greenidge reported total revenue of $19.2 million and a net operating loss of $5.6 million, with revenue derived from cryptocurrency mining, data center hosting, and power and capacity sales Q1 2025 Revenue Breakdown | Revenue Category | Q1 2025 Value | | :-------------------------- | :------------------- | | Total Revenue | $19.2 million | | Cryptocurrency Mining Revenue | $4.2 million | | Data Center Hosting Revenue | $5.8 million | | Power and Capacity Revenue | $9.2 million | Q1 2025 Key Financial Metrics | Metric | Q1 2025 Value | | :-------------------------- | :------------------- | | Net Operating Loss | $5.6 million | | EBITDA | $0.4 million | | Adjusted EBITDA | $1.0 million | Financial Position As of March 31, 2025, Greenidge held $4.9 million in cash and $8.4 million in Bitcoin, with total debt principal amounting to $66.7 million Balance Sheet Items (as of March 31, 2025) | Balance Sheet Item (as of March 31, 2025) | Value | | :---------------------------------------- | :------------------- | | Cash | $4.9 million | | Bitcoin | $8.4 million | | Total Debt Principal | $66.7 million | Adjusted EBITDA Reconciliation Adjusted EBITDA for Q1 2025 was $1.0 million, down from $2.8 million in Q1 2024, after non-GAAP adjustments for stock-based compensation, loss on asset sales, and insurance recovery gains Adjusted EBITDA Reconciliation (Millions of USD) | Amount (Millions of USD) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------- | :-------------------------- | :-------------------------- | | Net Operating Loss | $5.6 | $3.9 | | Interest Expense, Net | $2.9 | $1.8 | | Depreciation | $3.1 | $3.2 | | EBITDA | $0.4 | $1.1 | | Stock-Based Compensation | $0.5 | $1.1 | | Loss on Sale of Assets | $0.1 | — | | Insurance Recovery Gain | $(0.4) | — | | Loss on Subsidiary Liquidation | $0.3 | — | | Change in Fair Value of Warrant Assets | — | $0.4 | | Impairment of Long-Lived Assets | — | $0.2 | | Adjusted EBITDA | $1.0 | $2.8 | Operational & Strategic Developments This section outlines Greenidge's operational progress and future strategic direction, including CEO commentary, capacity expansion plans, and recent key strategic initiatives CEO Commentary & Business Outlook CEO Jordan Kovler emphasized rigorous execution and prudent financial management, highlighting significant debt reduction and ongoing efforts to optimize capital structure and expand mining operations amid surging institutional Bitcoin demand, with substantial capacity increases planned - CEO Jordan Kovler noted substantial progress in debt reduction and ongoing exploration of strategic transactions to align capital structure and expand mining operations[6] - Greenidge anticipates adding 2.5 MW of mining capacity in Q2 or Q3 2025, and at least 40 MW by Q2 2026, targeting a total near-term mining capacity of 161.5 MW[6] Operational Metrics and Plans | Operational Metric | Current | Planned | | :-------------------------------- | :---------------- | :---------------- | | Active Self-Mining, Hosting, and Power Generation | 119 MW | | | Planned Mining Capacity (Q2/Q3 2025) | | +2.5 MW | | Planned Mining Capacity (by Q2 2026) | | +40 MW | | Total Near-Term Mining Capacity (excluding future transactions) | | 161.5 MW | | Active Data Center Operations | 3.3 EH/s | | | Data Center Hosting (part of 3.3 EH/s) | 1.8 EH/s | | | Cryptocurrency Mining (part of 3.3 EH/s) | 1.5 EH/s | | Recent Strategic Initiatives Greenidge undertook several strategic initiatives, including board reconstitution with new independent directors, prudent management of the Equity Line of Credit (ELOC), enhanced miner efficiency, acquisition of a new Mississippi site, and progress on the South Carolina property sale - The company announced board reconstitution, appointing Kenneth Fearn and Christopher Krug as independent directors to strengthen strategic focus on value-maximizing transactions[9] - No equity sales were made through the Equity Line of Credit (ELOC) in Q1, with no current plans to utilize the ELOC below $2.73 per share[9] - Due to strategic purchases of more efficient miners, Greenidge's current active miner fleet efficiency improved to 23.8 J/TH, while the total fleet efficiency as of March 31, 2025, was 26.6 J/TH[9] - Greenidge is progressing with the sale of its South Carolina property and evaluating future sites with significant low-cost power capacity[9] About Greenidge Generation Holdings Inc. This section describes Greenidge Generation Holdings Inc. as a vertically integrated power generation company, with core businesses spanning cryptocurrency mining and related infrastructure services Company Description Greenidge Generation Holdings Inc. is a vertically integrated power generation company focused on cryptocurrency mining, infrastructure development, and operational services - Greenidge Generation Holdings Inc. is a vertically integrated power generation company[7] - The company focuses on cryptocurrency mining, infrastructure development, engineering, procurement, construction management, site operations, and maintenance[7] Important Disclosures This section includes disclaimers regarding forward-looking statements and the use of non-GAAP financial information, emphasizing potential risks and supplementary reporting principles Forward-Looking Statements This section serves as a disclaimer, noting that the press release contains forward-looking statements subject to risks and uncertainties, where actual results may differ materially from expectations, and the company undertakes no obligation to update these statements - This press release contains certain statements that constitute "forward-looking statements" concerning Greenidge's future business plans, strategies, and operations[8][10] - These forward-looking statements involve uncertainties that could significantly impact Greenidge's financial or operational results, and actual results may differ materially from expectations[8][10] - Greenidge undertakes no obligation to update or revise any forward-looking statements subsequent to the date of this press release[10] Use of Non-GAAP Information Greenidge uses Adjusted EBITDA as a non-GAAP metric to provide additional insight into its financial performance, defined as EBITDA adjusted for stock-based compensation and other special items, emphasizing that non-GAAP measures are supplementary and not substitutes for GAAP results - Greenidge discloses the non-GAAP operating performance measure, Adjusted EBITDA, in this press release to provide investors with additional information[11] - Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, and amortization, adjusted for stock-based compensation and other special items identified by management[11] - These non-GAAP financial measures are supplemental to, and not a substitute for or superior to, results presented in accordance with U.S. GAAP and should not be considered in isolation[11][12] Contacts This section provides contact information for Greenidge Generation Holdings Inc.'s investor relations and media inquiries Investor and Media Relations Contact details for Greenidge Generation Holdings Inc.'s investor relations and media inquiries are provided - Investor Contact: Nick Ratti (315-536-2359, nratti@greenidge.com, investorrelations@greenidge.com)[14] - Media Contact: Longacre Square Partners (Kate Sylvester / Liz Shoemaker, 646-386-0091, greenidge@longacresquare.com)[14]