Greenidge Generation(GREE) - 2025 Q2 - Quarterly Report

Cover Page Information Filing Details This section provides cover page information for Greenidge Generation Holdings Inc.'s Form 10-Q quarterly report for the period ended June 30, 2025, including company identification, registered securities, and registrant status - The filing type is a Form 10-Q quarterly report for the period ended June 30, 2025[2] - The registrant is Greenidge Generation Holdings Inc.[2] Registered Securities | Category | Ticker Symbol | Registered Exchange | | :--- | :--- | :--- | | Class A Common Stock, $0.0001 par value | GREE | Nasdaq Global Select Market | | 8.50% Senior Notes due 2026 | GREEL | Nasdaq Global Select Market | - The company is identified as a non-accelerated filer, a smaller reporting company, and an emerging growth company[5] - As of August 11, 2025, outstanding common stock includes 12,940,023 shares of Class A common stock and 2,733,394 shares of Class B common stock[5] Table of Contents Report Structure This section outlines the structure of the Form 10-Q quarterly report, detailing its main parts (Financial Information and Other Information), their respective items and subsections, and their starting page numbers - The report is divided into Part I (Financial Information) and Part II (Other Information)[8] - Financial Information includes condensed consolidated financial statements, notes, and management's discussion and analysis of financial condition and results of operations[8] - Other Information covers legal proceedings, risk factors, unregistered sales of equity securities, and exhibits[8] CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS Forward-Looking Statements This section cautions readers that forward-looking statements in the report are subject to risks and uncertainties that could cause actual results to differ materially from projections, are not guarantees of future performance, and should be reviewed in conjunction with the 'Risk Factors' section - This quarterly report contains 'forward-looking statements' as defined under federal securities laws[9] - These forward-looking statements involve uncertainties that could significantly affect the company's financial or operating performance[9] - Actual results may differ materially due to matters and factors described in Greenidge Generation Holdings Inc.'s most recent Form 10-K and the 'Risk Factors' section of this quarterly report[10] PART I. FINANCIAL INFORMATION Item 1. Financial Statements This item presents Greenidge Generation Holdings Inc.'s unaudited condensed consolidated financial statements for the period ended June 30, 2025, including balance sheets, statements of operations and comprehensive loss, stockholders' deficit, and cash flows, along with corresponding notes - The financial statements are unaudited and include all adjustments necessary for a fair presentation[21] - The results from the unaudited interim condensed consolidated statements of operations are not necessarily indicative of results for the year ending December 31, 2025, or any future interim period[21] Condensed Consolidated Balance Sheets (Unaudited) As of June 30, 2025, the company's total assets and cash and cash equivalents decreased compared to December 31, 2024, while digital assets slightly increased and stockholders' deficit expanded Balance Sheet Summary ($ in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :-------------------------------- | :------------ | :---------------- | :--------- | :--------- | | Total Assets | $52,761 | $64,855 | $(12,094) | (18.6)% | | Total Liabilities | $113,977 | $120,609 | $(6,632) | (5.5)% | | Total Stockholders' Deficit | $(61,216) | $(55,754) | $(5,462) | 9.8% | Cash and Digital Assets ($ in thousands) | Asset | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :---------------------- | :------------ | :---------------- | :--------- | :--------- | | Cash and Cash Equivalents | $3,397 | $8,619 | $(5,222) | (60.6)% | | Digital Assets | $7,299 | $6,950 | $349 | 5.0% | - Long-term debt, net of deferred financing costs, decreased from $68,068 thousand as of December 31, 2024, to $63,275 thousand as of June 30, 2025[14] Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) For the three and six months ended June 30, 2025, the company reported net losses with a slight decrease in total revenue, as significant increases in power and capacity revenue offset declines in data center hosting and cryptocurrency mining revenue, while operating costs remained high but interest expense decreased Revenue ($ in thousands) | Revenue Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change ($) | Change (%) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change ($) | Change (%) | | :--------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Data Center Hosting | $6,036 | $6,795 | $(759) | (11.2)% | $11,865 | $16,092 | $(4,227) | (26.3)% | | Cryptocurrency Mining | $4,235 | $4,775 | $(540) | (11.3)% | $8,461 | $11,774 | $(3,313) | (28.1)% | | Power and Capacity | $2,590 | $1,487 | $1,103 | 74.2% | $11,777 | $4,524 | $7,253 | 160.3% | | Total Revenue | $12,861 | $13,057 | $(196) | (1.5)% | $32,103 | $32,390 | $(287) | (0.9)% | Net Loss ($ in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change ($) | Change (%) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change ($) | Change (%) | | :---------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Net Loss | $(4,118) | $(5,568) | $1,450 | (26.0)% | $(9,682) | $(9,512) | $(170) | 1.8% | | Net Loss Per Share | $(0.27) | $(0.56) | $0.29 | (51.8)% | $(0.66) | $(0.98) | $0.32 | (32.7)% | - Net interest expense decreased by $1,047 thousand (58%) for the three months ended June 30, 2025, while remaining relatively stable for the six months ended June 30, 2025, compared to the prior year period[15] Condensed Consolidated Statements of Stockholders' Deficit (Unaudited) As of June 30, 2025, total stockholders' deficit increased from January 1, 2025, primarily due to net losses incurred during the period, partially offset by increases in additional paid-in capital from equity-based compensation and share issuances related to debt exchanges and equity interest payments - Total stockholders' deficit increased from ($55,754) thousand as of January 1, 2025, to ($61,216) thousand as of June 30, 2025[16] - Net loss impact on accumulated deficit: ($5,564) thousand for Q1 2025 and ($4,118) thousand for Q2 2025[16] - Additional paid-in capital increased by $3,872 thousand for the six months ended June 30, 2025, primarily from equity-based compensation, debt exchanges, and share issuances related to equity interest payments[16] - For the six months ended June 30, 2025, 1,242,456 shares of common stock were issued for debt exchange agreements and 843,696 shares of common stock for equity interest payment agreements[16] Condensed Consolidated Statements of Cash Flows (Unaudited) For the six months ended June 30, 2025, the company experienced a net decrease in cash, cash equivalents, and restricted cash, primarily due to significant cash usage in operating and financing activities, partially offset by cash provided by investing activities Net Cash Flow Summary ($ in thousands) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Net Cash Used in Operating Activities | $(10,523) | $(6,497) | $(4,026) | 62.0% | | Net Cash Provided by (Used in) Investing Activities | $7,894 | $(3,594) | $11,488 | (319.7)% | | Net Cash Used in (Provided by) Financing Activities | $(2,593) | $7,038 | $(9,631) | (136.8)% | | Net Change in Cash | $(5,222) | $(3,053) | $(2,169) | 71.0% | - Cash and cash equivalents decreased from $8,619 thousand at the beginning of the year to $3,397 thousand as of June 30, 2025[19][200] - Operating cash flow was negatively impacted by funding for environmental liabilities and RGGI credit purchases. Investing cash flow significantly improved due to increased proceeds from digital asset and long-term asset sales. Financing cash flow decreased due to principal debt repayments and a lack of new cash-generating financing activities[201][202][203] Notes to Condensed Consolidated Financial Statements (Unaudited) This section provides detailed disclosures and explanations for the condensed consolidated financial statement data, covering the company's organization, significant accounting policies, assets held for sale, property and equipment, debt, equity, income taxes, commitments, concentrations, related party transactions, digital assets, fair value measurements, segment reporting, and subsequent events - Management believes there is substantial doubt about the company's ability to continue as a going concern, but anticipates meeting working capital needs and current obligations over the next 12 months through existing cash, digital assets, operating cash flows, and proceeds from the sale of the Mississippi Facility or South Carolina land[23] - The company has reduced senior notes through debt exchanges and exchange offers, but long-term debt obligations remain a significant challenge[26][27][28] - The company has significant environmental liabilities related to coal combustion residuals pond closure and landfill operations, with remediation efforts and trust fund establishment underway[93][94] 1. ORGANIZATION AND DESCRIPTION OF BUSINESS Greenidge Generation Holdings Inc. operates as a vertically integrated cryptocurrency data center and power generation company with facilities in New York, Mississippi, and North Dakota, generating revenue through data center hosting, cryptocurrency mining, and power sales to the NYISO grid - The company is a vertically integrated cryptocurrency data center and power generation company[20] - The company owns and operates facilities in Torrey, New York (New York Facility), Columbus, Mississippi (Mississippi Facility), and Underwood, North Dakota (North Dakota Facility)[20] - Revenue sources include data center hosting, cryptocurrency mining (company-owned ASICs), and sales of power and capacity to the NYISO grid[20] - The New York Facility is a 106 MW natural gas-powered generation facility connected to the NYISO grid, selling power based on wholesale electricity market prices and demand[20] 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES This note outlines significant accounting policies, including the basis of presentation for unaudited interim financial statements, the company's going concern assessment, and recent accounting pronouncements; the company has historically incurred operating losses but believes its liquidity plans will address short-term obligations, though long-term debt remains a challenge - The company has historically incurred operating losses and negative cash flows from operations, raising substantial doubt about its ability to continue as a going concern, but management believes plans involving existing cash, digital assets, operating cash flows, and asset sales (Mississippi Facility, South Carolina land) will mitigate concerns for the next 12 months[23] - The company anticipates operating cash flows will be insufficient to meet existing long-term debt obligations, particularly the $44.6 million senior notes due October 2026[25][27] - The company has taken steps to improve liquidity, including asset sales (repaying $80.3 million in debt), significant reductions in selling, general, and administrative expenses, and agreements to sell South Carolina land for $12.1 million and the Mississippi Facility for $3.9 million[24] - The company has addressed debt through privately negotiated debt exchange agreements (issuing 1,242,456 shares of Class A common stock and paying $2.6 million in cash for $10.3 million of senior notes) and an exchange offer (purchasing $8.9 million of senior notes for $3.2 million in cash and exchanging $4.8 million of senior notes for $2.2 million in new notes)[26][27] - The company is evaluating the impact of ASU 2023-09 (Income Tax Disclosures) and ASU 2024-03 (Income Statement Expense Disaggregation Disclosures) and expects ASU 2024-04 (Convertible Debt) to have no impact on its consolidated financial statements[37][38][39] 3. ASSETS HELD FOR SALE The company has entered into a definitive agreement to sell its South Carolina land for $12.1 million in cash and an 8% profit share in a planned data center, with the transaction expected to close in 2025; the land, with a carrying value of $7.2 million, is classified as long-term assets held for sale - The asset held for sale is the South Carolina land[45] - A definitive sale agreement has been executed with Data Journey LLC[45] - The sale price is $12.1 million in cash and an 8% profit share interest in a planned data center[45] - The carrying value was $7.2 million as of June 30, 2025, and December 31, 2024[45] - The transaction is expected to close no later than August 25, 2025[45] 4. PROPERTY AND EQUIPMENT As of June 30, 2025, net property and equipment decreased from $30.3 million on December 31, 2024, to $25.3 million; the company sold construction-in-progress assets at a loss and recognized impairment losses on miners in the prior year, and the Mississippi Facility acquired in April 2024 is now under a sale agreement Net Property and Equipment ($ in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :-------------------------- | :------------ | :---------------- | :--------- | :--------- | | Net Property and Equipment | $25,287 | $30,299 | $(5,012) | (16.5)% | Depreciation Expense ($ in thousands) | Period | 2025 | 2024 | Change ($) | Change (%) | | :-------------------------- | :----- | :----- | :--------- | :--------- | | Three Months Ended June 30 | $3,179 | $3,285 | $(106) | (3.2)% | | Six Months Ended June 30 | $6,310 | $6,519 | $(209) | (3.2)% | - For the six months ended June 30, 2025, the company sold construction-in-progress assets with a carrying value of $0.8 million for $0.7 million in proceeds, resulting in a $0.1 million loss on asset sale[50] - In April 2024, the company acquired approximately 12 acres of land and a 73,000 square foot industrial warehouse space in Columbus, Mississippi, for $1.45 million; on August 1, 2025, an agreement was signed to sell the Mississippi Facility (excluding Bitcoin miners and industrial warehouse land) for $3.9 million, with the transaction expected to close no later than September 16, 2025[47] - No impairment triggering events were identified as of June 30, 2025. In the first half of 2024, the company recognized an impairment charge of $0.2 million for miners no longer operable[51][52] 5. DEBT As of June 30, 2025, the company's debt carrying value decreased from $68.1 million on December 31, 2024, to $63.3 million, primarily due to privately negotiated debt-for-equity agreements and an exchange offer, which also introduced new 10.00% Senior Notes due 2030 Total Debt Carrying Value ($ in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :-------------------- | :------------ | :---------------- | :--------- | :--------- | | Total Debt Carrying Value | $63,275 | $68,068 | $(4,793) | (7.0)% | Interest Expense ($ in thousands) | Period | 2025 | 2024 | Change ($) | Change (%) | | :-------------------------- | :----- | :----- | :--------- | :--------- | | Three Months Ended June 30 | $758 | $1,805 | $(1,047) | (58.0)% | | Six Months Ended June 30 | $3,613 | $3,607 | $6 | 0.2% | - For the six months ended June 30, 2025, the company issued 1,242,456 shares of Class A common stock (fair value of $1.5 million) and paid $2.6 million in cash through privately negotiated exchange agreements for $10.3 million of senior notes, with the transaction identified as a troubled debt restructuring[57] - On July 21, 2025, the company announced the results of an exchange offer, purchasing $8.9 million of senior notes for $3.2 million in cash and exchanging $4.8 million of senior notes for $2.2 million in new 10.00% Senior Notes due 2030[58] - Following the exchange offer, $44.6 million of senior notes and $2.2 million of new notes remain outstanding[58] - As of June 30, 2025, the company's debt had a nominal value of $58.3 million and an estimated fair value of $18.8 million[64] 6. LOSS PER SHARE For the three and six months ended June 30, 2025, the company reported basic and diluted net loss per share of ($0.27) and ($0.66), respectively; diluted earnings per share are the same as basic due to the anti-dilutive effect of potential common shares when the company is in a loss position Basic and Diluted Net Loss Per Share | Period | 2025 | 2024 | Change ($) | Change (%) | | :-------------------------- | :----- | :----- | :--------- | :--------- | | Three Months Ended June 30 | $(0.27) | $(0.56) | $0.29 | (51.8)% | | Six Months Ended June 30 | $(0.66) | $(0.98) | $0.32 | (32.7)% | Weighted Average Shares Outstanding (in thousands) | Period | 2025 | 2024 | Change | Change (%) | | :-------------------------- | :----- | :----- | :----- | :--------- | | Three Months Ended June 30 | 15,246 | 9,966 | 5,280 | 53.0% | | Six Months Ended June 30 | 14,596 | 9,730 | 4,866 | 50.0% | - As of June 30, 2025, 2,240 thousand potential common shares (including restricted stock units, stock options, and warrants) were excluded from diluted loss per share calculations due to their anti-dilutive effect[68] 7. EQUITY BASED COMPENSATION Greenidge's 2021 Equity Incentive Plan has been amended multiple times, increasing authorized Class A common shares to 2,583,111; the company recognized $0.4 million in equity-based compensation expense in Q2 2025 and $0.9 million for the first half, with $0.4 million in unrecognized unvested award costs remaining - As of June 2025, the authorized number of Class A common shares under the 2021 Equity Incentive Plan has increased to 2,583,111 shares[69] - As of June 30, 2025, unvested restricted stock awards (RSAs) and restricted stock units (RSUs) totaled 500,604, with a weighted-average grant date fair value of $1.08[71] - As of June 30, 2025, unvested common stock options totaled 478,154, with a weighted-average exercise price of $15.32[72] Equity-Based Compensation Expense ($ in thousands) | Period | 2025 | 2024 | Change ($) | Change (%) | | :-------------------------- | :----- | :----- | :--------- | :--------- | | Three Months Ended June 30 | $378 | $311 | $67 | 21.5% | | Six Months Ended June 30 | $921 | $1,381 | $(460) | (33.3)% | - As of June 30, 2025, unrecognized compensation cost for unvested restricted stock rights was approximately $0.4 million (remaining weighted-average vesting period of approximately 2.22 years), and for unvested common stock options was approximately $0.4 million (remaining weighted-average vesting period of approximately 0.86 years)[71][72] 8. INCOME TAXES For the three and six months ended June 30, 2025, the company's effective tax rates were a 1% benefit and 0%, respectively, significantly below the 21% statutory rate, primarily due to a full valuation allowance against deferred tax assets and a tax refund received in 2025 related to prior periods - For the three months ended June 30, 2025, the effective tax rate was a 1% benefit; for the six months ended June 30, 2025, the effective tax rate was 0%, both below the 21% statutory rate[75] - The company has a full valuation allowance against its deferred tax assets due to a history of declining profitability[75] - A tax refund related to prior period taxes was received in 2025[75] 9. STOCKHOLDERS' DEFICIT This note details various equity-related transactions, including common stock issuance agreements (B. Riley Principal II, ATM Agreement, Armistice SPA) and debt-for-equity agreements, and also covers the equity interest payment agreement with Atlas, under which the company issues Class A common stock for credit support - Common Stock Purchase Agreement with B. Riley Principal Capital II, LLC: The company has the right to sell up to $20 million of Class A common stock over 36 months; as of June 30, 2025, 1,595,855 shares have been issued for $4.3 million in net proceeds, with no shares issued in Q2 or the first half of 2025[76][78] - At-the-Market (ATM) Offering Sales Agreement with B. Riley Securities: The company may issue and sell up to $22.8 million of Class A common stock; as of June 30, 2025, 4,167,463 shares have been issued for $20.7 million in net proceeds, with no shares issued in Q2 or the first half of 2025[79][80] - Armistice Capital Agreement: In February 2024, the company issued 450,300 shares of Class A common stock and a pre-funded warrant (fully exercised to purchase 810,205 shares of Class A common stock) for $6 million in gross proceeds. Additionally, a five-year warrant to purchase up to 1,260,505 shares of Class A common stock at $5.25 per share was issued and remains unexercised as of June 30, 2025[81] - Debt Exchange Agreements (First Half 2025): The company issued 1,242,456 shares of Class A common stock (fair value of $1.5 million) and paid $2.6 million in cash through privately negotiated exchange agreements for $10.3 million of senior notes[84] - Equity Interest Payment Agreement (with Atlas): The company pays 8.5% interest by issuing Class A common stock in exchange for Atlas's continued credit support for $8.6 million in letters of credit. As of July 2, 2025, 975,633 shares of Class A common stock with a total fair value of $1.7 million have been issued for letter of credit extension fees and Q1 and Q2 2025 equity interest payments[85][86] 10. COMMITMENTS AND CONTINGENCIES This note details ongoing legal challenges, particularly the Title V Air Permit renewal litigation for the New York Facility, which could significantly impact operations and financial stability, and outlines substantial environmental liabilities related to coal ash pond closure and landfill operations, along with other contractual commitments - The New York State Department of Environmental Conservation (NYSDEC) denied the company's Title V Air Permit renewal application for the New York Facility in June 2022. The company filed a lawsuit, and in November 2024, the court annulled the denial and remanded it to NYSDEC for reconsideration. Administrative hearings are ongoing, with the next hearing scheduled for November 18, 2025[88][89][90] - Failure to successfully renew the permit is expected to result in additional costs, diversion of management's attention, and could have a material adverse effect on the company's business, financial condition, and ability to meet long-term debt obligations[91][92] Environmental Liabilities ($ in thousands) | Liability Category | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Coal Combustion Residuals (CCR) Liabilities | $17,300 | $17,300 | | Landfill Environmental Liabilities | $13,400 | $13,400 | - A natural gas transportation contract with Empire Pipeline Incorporated costs approximately $0.2 million per month and concludes in September 2030[95] - A five-year 7.5 MW self-mining capacity lease agreement was entered into, with $2 million in variable costs recognized in the first half of 2025[96] 11. CONCENTRATIONS Greenidge has significant concentrations in customers and suppliers, with a single hosting customer, a single mining pool operator, and NYISO each accounting for a large portion of data center hosting, cryptocurrency mining, and power capacity revenue, respectively; the company also relies heavily on a single natural gas supplier - A single hosting customer accounted for 47% and 37% of the company's total revenue in Q2 and the first half of 2025, respectively, with a 6-month termination option[98] - A single mining pool operator accounted for 32% and 26% of the company's total revenue in Q2 and the first half of 2025, respectively (from self-mining operations)[100] - NYISO, the primary power customer, accounted for 20% and 37% of the company's total revenue in Q2 and the first half of 2025, respectively[101] - A single natural gas supplier accounted for 35% and 47% of the cost of revenue in Q2 and the first half of 2025, respectively[102] 12. RELATED PARTY TRANSACTIONS Controlling shareholder Atlas Holdings LLC provides significant credit support for environmental liabilities and pipeline interconnection through $8.6 million in letters of credit; in return, Greenidge pays interest by issuing Class A common stock under an equity interest payment agreement - Atlas Holdings LLC controls 69.8% of the company's voting power[103] - Atlas provides a $5 million letter of credit for landfill environmental trust liabilities and a $3.6 million letter of credit for the Empire pipeline interconnection project[104][105] - The company entered into an equity interest payment agreement with Atlas to pay 8.5% interest by issuing Class A common stock in exchange for Atlas's continued credit support for $8.6 million in letters of credit[108] Shares Issued Under Equity Interest Payment Agreement ($ in thousands) | Payment Type | Number of Shares Issued | Fair Value ($) | | :-------------------------------- | :------------ | :------------- | | Letter of Credit Extension (January 29, 2025) | 752,742 | $1,400 | | Q1 2025 Equity Interest (April 8, 2025) | 90,954 | $100 | | Q2 2025 Equity Interest (July 2, 2025) | 131,937 | $200 | | Cumulative Total | 975,633 | $1,700 | - In April 2024, the company acquired approximately 12 acres of land and industrial warehouse space in Columbus, Mississippi, for $1.45 million from a subsidiary of Motus Pivot Inc., an Atlas portfolio company[107] 13. SUPPLEMENTAL BALANCE SHEET AND CASH FLOW INFORMATION This note provides additional details on contractual liabilities, prepaid and accrued expenses, and non-cash investing and financing activities; contractual liabilities decreased due to revenue recognition, prepaid expenses declined, and accrued expenses remained stable, while significant non-cash activities included common stock issuances for debt reduction and letter of credit extension fees - Contractual liabilities decreased from $2,339 thousand as of December 31, 2024, to $861 thousand as of June 30, 2025, primarily due to revenue recognition[111] - Prepaid expenses decreased from $2,617 thousand as of December 31, 2024, to $1,653 thousand as of June 30, 2025, primarily due to a reduction in prepaid insurance[112] - Accrued expenses were $4,027 thousand as of June 30, 2025, remaining stable compared to $4,232 thousand as of December 31, 2024[113] Non-Cash Investing and Financing Activities (First Half 2025, $ in thousands) | Activity | Amount ($) | | :-------------------------------- | :----------- | | Common Stock Issued for Debt Reduction | $1,462 | | Shares Issued to Settle Standby Letter of Credit Extension Fees | $1,489 | - Cash interest paid for the six months ended June 30, 2025, was $2,874 thousand[113] 14. DIGITAL ASSETS As of June 30, 2025, the fair value of the company's digital assets (primarily Bitcoin) increased from $6.95 million on December 31, 2024, to $7.3 million, despite a decrease in Bitcoin held, driven by mining additions and significant gains on digital assets Digital Asset Holdings ($ in thousands, except Bitcoin quantity) | Metric | June 30, 2025 | December 31, 2024 | Change | Change (%) | | :-------------------- | :------------ | :---------------- | :----- | :--------- | | Bitcoin Held (quantity) | 68.1 | 74.5 | (6.4) | (8.6)% | | Bitcoin Carrying Value | $6,419 | $5,523 | $896 | 16.2% | | Bitcoin Fair Value | $7,299 | $6,950 | $349 | 5.0% | Digital Assets Fair Value Rollforward (First Half 2025, $ in thousands) | Metric | Six Months Ended June 30, 2025 | | :-------------------------- | :--------------------------- | | Beginning Fair Value Balance | $6,950 | | Additions (from mining) | $8,461 | | Disposals (sales) | $(9,222) | | Gain on Digital Assets | $1,110 | | Ending Balance | $7,299 | - The Bitcoin held by the company is not subject to contractual sales restrictions[115] 15. FAIR VALUE The company uses a three-level hierarchy to measure the fair value of assets and liabilities; digital assets are measured at fair value on a recurring basis using Level 1 inputs (quoted prices in active markets), while other short-term assets and liabilities approximate fair value due to their short maturities - The fair value hierarchy is categorized into Level 1 (quoted prices in active markets), Level 2 (observable inputs), and Level 3 (unobservable inputs)[116][120] - Digital assets (Bitcoin) are measured at fair value on a recurring basis using Level 1 inputs[118] Digital Assets Fair Value ($ in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :------------- | :------------ | :---------------- | | Digital Assets | $7,299 | $6,950 | - Long-lived assets are remeasured at fair value on a non-recurring basis when their carrying value exceeds fair value, using Level 3 inputs[119] 16. SEGMENT REPORTING Greenidge operates as one reportable segment, 'Data Center Operations,' with revenue derived from data center hosting, self-mining of cryptocurrency, and power and capacity sales; performance is assessed based on segment gross profit and net income, focusing on resource allocation and deleveraging - The company has one reportable segment: Data Center Operations[121] - Revenue sources include data center hosting, self-mining of cryptocurrency, and sales of power and capacity[121] - The chief operating decision makers (CEO and President) assess performance and determine resource allocation based on segment gross profit and net income[121] Segment Gross Profit ($ in thousands) | Period | 2025 | 2024 | Change ($) | Change (%) | | :-------------------------- | :----- | :----- | :--------- | :--------- | | Three Months Ended June 30 | $1,010 | $3,741 | $(2,731) | (73.0)% | | Six Months Ended June 30 | $5,254 | $10,756 | $(5,502) | (51.1)% | Segment Net Loss ($ in thousands) | Period | 2025 | 2024 | Change ($) | Change (%) | | :-------------------------- | :----- | :----- | :--------- | :--------- | | Three Months Ended June 30 | $(4,118) | $(5,568) | $1,450 | (26.0)% | | Six Months Ended June 30 | $(9,682) | $(9,512) | $(170) | 1.8% | 17. SUBSEQUENT EVENTS Subsequent to June 30, 2025, Greenidge completed an exchange offer for senior notes, reducing outstanding principal and issuing new notes; the company also issued Class A common stock for equity interest payments and entered into an agreement to sell the Mississippi Facility for $3.9 million - On July 21, 2025, the company completed an exchange offer, purchasing $8.9 million of senior notes for $3.2 million in cash and exchanging $4.8 million of senior notes for $2.2 million in new notes. Following the offer, $44.6 million of senior notes and $2.2 million of new notes remain outstanding[124] - On July 2, 2025, the company issued 131,937 shares of Class A common stock to Atlas to settle Q2 2025 equity interest payment obligations[126] - On August 1, 2025, the company entered into an agreement to sell certain assets of the Mississippi Facility (excluding miners and warehouse land) for $3.9 million in cash, with the transaction expected to close no later than September 16, 2025[127] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations This section outlines Greenidge's business as a cryptocurrency data center and power generation operator, discusses recent developments including debt restructuring and asset sales, and analyzes financial performance for the three and six months ended June 30, 2025, with a focus on revenue, costs, and liquidity - The company is a data center developer and operator focused on cryptocurrency mining and infrastructure development[129] - Revenue sources include data center hosting, self-mining of cryptocurrency, and sales of power and capacity[129] - The company has repaid approximately 38.2% ($27.61 million) of the original aggregate principal amount of senior notes, including through an exchange offer[133] - The company has entered into an agreement to sell the Mississippi Facility for $3.9 million in cash[134] - The company has regained compliance with Nasdaq's minimum bid price and minimum public holders' value listing requirements[134] Overview Greenidge is a vertically integrated cryptocurrency data center and power generation operator with facilities in New York, Mississippi, and North Dakota; the company leverages its 106 MW natural gas-powered generation facility in New York for self-sufficiency and sells power to NYISO, with data center operations comprising approximately 28,500 miners and a total capacity of 3.2 EH/s - The company is a data center developer and operator focused on cryptocurrency mining and infrastructure development[129] - The New York Facility is a vertically integrated cryptocurrency data center and power generation facility with approximately 106 MW of natural gas-powered generation capacity[130][131] - The company's data center operations comprise approximately 28,500 miners with a total capacity of approximately 3.2 EH/s, of which 18,200 miners (1.8 EH/s) are for data center hosting and 10,300 miners (1.4 EH/s) are for cryptocurrency mining[132] - The company's competitive advantages include efficiently designed mining infrastructure and in-house operational expertise, enabling high miner uptime[131] Recent Developments Recent highlights include the repayment of 38.2% of the company's senior notes through cash purchases and equity exchanges, completion of an exchange offer, announcement of the Mississippi Facility sale, and regaining compliance with Nasdaq listing requirements - The company has repaid approximately 38.2% ($27.61 million) of the original $72.2 million aggregate principal amount of senior notes through cash or Class A common stock payments[133] - On July 21, 2025, the company announced the results of an exchange offer, purchasing $8.9 million of senior notes for $3.2 million in cash and exchanging $4.8 million of senior notes for $2.2 million in new notes[133] - On August 1, 2025, the company entered into an agreement to sell certain assets of the Mississippi Facility for $3.9 million in cash[134] - The company has regained compliance with Nasdaq's minimum bid price and minimum public holders' value listing requirements[134] - On August 11, 2025, Charles M. Zeynel was appointed to the company's Board of Directors, bringing valuable expertise in sustainable materials, carbon removal technologies, and M&A[134] Results from Operations - Three Months Ended June 30, 2025 For the three months ended June 30, 2025, Greenidge reported a net loss of $4.1 million, an improvement from $5.6 million in the prior year period; total revenue slightly decreased by 2%, primarily due to lower data center hosting and cryptocurrency mining revenue, offset by significant growth in power and capacity revenue, while operating costs increased but selling, general, and administrative expenses and interest expense decreased - Net loss for Q2 2025 was $4,118 thousand, an improvement of 26% from $5,568 thousand in Q2 2024[136] - Total revenue for Q2 2025 was $12,861 thousand, a 2% decrease from $13,057 thousand in Q2 2024[136] - Power and capacity revenue increased by 74% to $2,590 thousand, while data center hosting and cryptocurrency mining revenue both decreased by 11%[136] - Cost of revenue (exclusive of depreciation) increased by 27% to $11,851 thousand[136] - Selling, general and administrative expenses decreased by 27% to $3,106 thousand[136] - Net interest expense decreased by 58% to $758 thousand[136] - Gain on digital assets was $2,098 thousand, compared to a $11 thousand loss in the prior year period[136] Revenue (Three Months) Total revenue for Q2 2025 slightly decreased by 2% to $12.9 million, primarily due to an 11% decline in both data center hosting and cryptocurrency mining revenue, offset by a 74% surge in power and capacity revenue driven by favorable economic conditions and increased sales volume Revenue ($ in thousands) | Revenue Category | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :--------------------- | :------ | :------ | :--------- | :--------- | | Data Center Hosting | $6,036 | $6,795 | $(759) | (11)% | | Cryptocurrency Mining | $4,235 | $4,775 | $(540) | (11)% | | Power and Capacity | $2,590 | $1,487 | $1,103 | 74% | - Cryptocurrency mining revenue decreased by 11%, primarily due to a 45% increase in global Bitcoin mining difficulty and the Bitcoin halving in April 2024, partially offset by a 50% increase in the average Bitcoin price[140][141] - Power and capacity revenue increased by 74%, driven by a 32% increase in power and capacity sales volume and a 33% increase in average prices[138][147] - Data center hosting revenue decreased by 11%, primarily due to a 45% increase in average difficulty, a 3% decrease in hosted MWh, and the Bitcoin halving, partially offset by a 50% increase in the average Bitcoin price[146] - Total Bitcoin production decreased by 50% from 217 Bitcoin in Q2 2024 to 110 Bitcoin in Q2 2025[138] Cost of revenue (exclusive of depreciation) (Three Months) In Q2 2025, total cost of revenue (exclusive of depreciation) increased by 27% to $11.9 million, driven primarily by higher natural gas costs, increased emissions expenses due to rising RGGI prices, and higher power costs outside the New York Facility, with some offset from decreased cryptocurrency mining hosting fees Cost of Revenue (exclusive of depreciation) ($ in thousands) | Cost Category | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :--------------------- | :------ | :------ | :--------- | :--------- | | Data Center Hosting | $6,577 | $4,785 | $1,792 | 37% | | Cryptocurrency Mining | $2,963 | $3,234 | $(271) | (8)% | | Power and Capacity | $2,311 | $1,297 | $1,014 | 78% | - Total cost of revenue (exclusive of depreciation) increased by $2.5 million, or 27%, to $11.9 million[148] - Key drivers for the cost increase include approximately 18% higher natural gas costs, approximately 7% higher emissions expenses due to increased RGGI prices, and approximately 6% higher power costs outside the New York Facility[148] - The increase was partially offset by approximately 9% lower cryptocurrency mining hosting fees due to the termination of a hosting agreement in Q2 2024[148] Selling, general and administrative expenses (Three Months) In Q2 2025, selling, general and administrative (SG&A) expenses decreased by 27% to $3.1 million, primarily due to reductions in insurance, professional services, consulting fees, and environmental remediation costs - Selling, general and administrative expenses decreased by 27% from $4,240 thousand in Q2 2024 to $3,106 thousand in Q2 2025[136][150] - Insurance expenses decreased by approximately $0.6 million due to a lower asset base[150] - Professional services and consulting fees decreased by approximately $0.2 million due to lower discretionary costs[150] - Environmental remediation expenses decreased by approximately $0.2 million[150] Depreciation (Three Months) In Q2 2025, depreciation expense decreased by 3% to $3.2 million, primarily due to a lower depreciable asset base at period-end - Depreciation expense decreased by 3% from $3,285 thousand in Q2 2024 to $3,179 thousand in Q2 2025[136][152] - The decrease was primarily due to a lower depreciable asset base at period-end[152] Loss (gain) on digital assets (Three Months) In Q2 2025, the company realized a $2.1 million gain on digital assets, a significant improvement from a $0.01 million loss in Q2 2024; this gain primarily stemmed from an increase in Bitcoin closing prices, including $1.6 million in unrealized gains on Bitcoin inventory and $0.5 million in realized gains from sales - Gain on digital assets was $2,098 thousand in Q2 2025, compared to a $11 thousand loss in Q2 2024[136][153] - The gain included $1.6 million in unrealized gains on Bitcoin inventory and $0.5 million in realized gains from Bitcoin sales[153] - The primary driver for the gain was an increase in Bitcoin closing prices[153] Loss (gain) on sale of assets (Three Months) In Q2 2025, the company recognized a $0.2 million loss on asset sales from the disposal of long-lived assets, compared to a $0.03 million gain in the prior year period - Loss on sale of assets was $218 thousand in Q2 2025, compared to a $32 thousand gain in Q2 2024[136][154] - The loss was primarily due to the sale of long-lived assets[154] Operating loss from operations (Three Months) In Q2 2025, Greenidge reported an operating loss of $3.4 million, an improvement from $3.8 million in Q2 2024, primarily driven by reduced selling, general, and administrative expenses and digital asset gains, despite increased cost of revenue - Operating loss from operations was $3,395 thousand in Q2 2025, a 10% improvement from $3,763 thousand in Q2 2024[136][155] Total other expense, net (Three Months) In Q2 2025, total other expense, net, decreased by 58% to $0.8 million, primarily due to a $1 million reduction in non-cash amortization of bond premium - Total other expense, net, was $757 thousand in Q2 2025, a 58% decrease from $1,805 thousand in Q2 2024[136][156] - The decrease was primarily due to approximately $1 million less in non-cash amortization of bond premium[156] Benefit from income taxes (Three Months) In Q2 2025, the company recognized a $34 thousand tax benefit, compared to no benefit in Q2 2024; the effective tax rate was a 1% benefit, significantly below the 21% statutory rate, due to a full valuation allowance against deferred tax assets and a tax refund - Benefit from income taxes was $34 thousand in Q2 2025, compared to zero in Q2 2024[136][157] - The effective tax rate was a 1% benefit in Q2 2025 and a 0% expense in Q2 2024, both below the 21% statutory rate[157] - The primary reasons were a full valuation allowance against deferred tax assets and a tax refund received[157] Net loss from operations (Three Months) In Q2 2025, Greenidge's net loss from operations was $4.1 million, a 26% improvement from a $5.6 million net loss in Q2 2024, primarily benefiting from reduced operating and other expenses despite a slight revenue decline - Net loss from operations was $4,118 thousand in Q2 2025, a 26% improvement from $5,568 thousand in Q2 2024[136][158] Non-GAAP Measures and Reconciliations (Three Months) In Q2 2025, EBITDA improved from a $0.5 million loss in Q2 2024 to a $0.2 million loss, and Adjusted EBITDA shifted from a $0.2 million loss to a $0.4 million positive gain in the prior year period; these non-GAAP metrics are used to assess operating performance by excluding non-recurring items EBITDA and Adjusted EBITDA ($ in thousands) | Metric | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :---------------- | :------ | :------ | :--------- | :--------- | | EBITDA | $(215) | $(478) | $263 | (55)% | | Adjusted EBITDA | $381 | $(199) | $580 | (291)% | - Adjustments include equity-based compensation, loss (gain) on sale of assets, change in fair value of warrant assets, and long-lived asset impairment, which do not represent business operations[161][163] Results from Operations - Six Months Ended June 30, 2025 For the six months ended June 30, 2025, Greenidge reported a net loss of $9.7 million, slightly higher than $9.5 million in the prior year period; total revenue remained stable as significant growth in power and capacity revenue offset declines in data center hosting and cryptocurrency mining revenue, while operating costs increased but selling, general, and administrative expenses significantly decreased - Net loss for the first half of 2025 was $9,682 thousand, a 2% increase from $9,512 thousand in the first half of 2024[165] - Total revenue for the first half of 2025 was $32,103 thousand, a 1% decrease from $32,390 thousand in the first half of 2024[165] - Power and capacity revenue increased by 160% to $11,777 thousand, while data center hosting revenue decreased by 26% and cryptocurrency mining revenue decreased by 28%[165] - Cost of revenue (exclusive of depreciation) increased by 24% to $26,849 thousand[165] - Selling, general and administrative expenses decreased by 39% to $5,882 thousand[165] - Gain on digital assets was $1,110 thousand, compared to a $48 thousand gain in the prior year period[165] Revenue (Six Months) Total revenue for the first half of 2025 remained relatively stable at $32.1 million, a slight 1% decrease, primarily benefiting from a 160% increase in power and capacity revenue, which offset significant declines in data center hosting (26%) and cryptocurrency mining (28%) revenue Revenue ($ in thousands) | Revenue Category | First Half 2025 | First Half 2024 | Change ($) | Change (%) | | :--------------------- | :------ | :------ | :--------- | :--------- | | Data Center Hosting | $11,865 | $16,092 | $(4,227) | (26)% | | Cryptocurrency Mining | $8,461 | $11,774 | $(3,313) | (28)% | | Power and Capacity | $11,777 | $4,524 | $7,253 | 160% | - Cryptocurrency mining revenue decreased by 28%, primarily due to a 44% increase in global Bitcoin mining difficulty and the Bitcoin halving in April 2024, partially offset by a 62% increase in the average Bitcoin price and a 15% increase in average hash rate[170] - Power and capacity revenue increased by 160%, primarily due to a 50% increase in average power and capacity prices and a 110% increase in sales volume[168][177] - Data center hosting revenue decreased by 26%, primarily due to a 44% increase in average difficulty, a 14% decrease in hosted MWh (shift to power/capacity sales), and the Bitcoin halving, partially offset by a 62% increase in the average Bitcoin price[175] - Total Bitcoin production decreased by 65% from 626 Bitcoin in the first half of 2024 to 222 Bitcoin in the first half of 2025[168] Cost of revenue (exclusive of depreciation) (Six Months) In the first half of 2025, total cost of revenue (exclusive of depreciation) increased by 24% to $26.8 million, primarily driven by higher natural gas and power costs, with some offset from decreased monthly hosting fees paid to third parties Cost of Revenue (exclusive of depreciation) ($ in thousands) | Cost Category | First Half 2025 | First Half 2024 | Change ($) | Change (%) | | :--------------------- | :------ | :------ | :--------- | :--------- | | Data Center Hosting | $12,768 | $11,886 | $882 | 7% | | Cryptocurrency Mining | $6,045 | $6,905 | $(860) | (12)% | | Power and Capacity | $8,036 | $2,843 | $5,193 | 183% | - Total cost of revenue (exclusive of depreciation) increased by $5.2 million, or 24%, to $26.8 million[178] - Key drivers for the cost increase include approximately 38% higher natural gas costs and approximately 8% higher power costs[178] - The increase was partially offset by approximately 20% lower monthly hosting fees paid to third parties[178] Selling, general and administrative expenses (Six Months) In the first half of 2025, selling, general and administrative (SG&A) expenses significantly decreased by 39% to $5.9 million, primarily benefiting from lower insurance, reduced professional services and consulting fees, decreased salaries and equity-based compensation, and property tax reallocation - Selling, general and administrative expenses decreased by 39% from $9,633 thousand in the first half of 2024 to $5,882 thousand in the first half of 2025[165][180] - Insurance expenses decreased by approximately $1.4 million due to a lower asset base[180] - Professional services and consulting fees decreased by approximately $0.9 million due to lower discretionary costs and higher prior period regulatory costs[180] - Salaries and benefits decreased by approximately $0.3 million, and equity-based compensation decreased by approximately $0.5 million[180] - Property taxes decreased by approximately $0.4 million due to reallocation to cost of revenue[180] Depreciation (Six Months) In the first half of 2025, depreciation expense decreased by 3% to $6.3 million, primarily due to a lower asset base - Depreciation expense decreased by 3% from $6,519 thousand in the first half of 2024 to $6,310 thousand in the first half of 2025[165][181] - The decrease was primarily due to a lower asset base[181] Gain on digital assets (Six Months) In the first half of 2025, the company realized a $1.1 million gain on digital assets, a significant increase from a $0.05 million gain in the first half of 2024; this gain primarily stemmed from an increase in Bitcoin prices, including $0.4 million in unrealized gains and $0.7 million in realized gains from sales - Gain on digital assets was $1,110 thousand in the first half of 2025, compared to a $48 thousand gain in the first half of 2024[165][182] - The gain included $0.4 million in unrealized gains on digital asset inventory and $0.7 million in realized gains from Bitcoin sales[182] - The primary driver for the gain was an increase in Bitcoin prices[182] Loss (gain) on sale of assets (Six Months) In the first half of 2025, the company recognized a $0.4 million loss on asset sales from the disposal of long-lived assets, compared to a $0.03 million gain in the prior year period - Loss on sale of assets was $355 thousand in the first half of 2025, compared to a $32 thousand gain in the first half of 2024[165][183] - The loss primarily resulted from the sale of long-lived assets[183] Operating (loss) income from operations (Six Months) In the first half of 2025, Greenidge reported an operating loss of $5.8 million, a slight increase from $5.5 million in the first half of 2024, primarily due to increased cost of revenue offsetting reduced selling, general, and administrative expenses and digital asset gains - Operating loss from operations was $5,784 thousand in the first half of 2025, a 5% increase from $5,485 thousand in the first half of 2024[165][184] Total other expense, net (Six Months) In the first half of 2025, total other expense, net, decreased by 2% to $3.9 million. This was primarily due to a reduction in the change in fair value of warrant assets, partially offset by losses from a liquidated foreign subsidiary and increased interest expense related to related party agreements - Total other expense, net, was $3,942 thousand in the first half of 2025, a 2% decrease from $4,027 thousand in the first half of 2024[165][185] - Key drivers include a $0.4 million decrease in the change in fair value of warrant assets, offset by a $0.3 million loss from a liquidated foreign subsidiary and a $1.3 million increase in interest expense paid to related parties[185] Benefit from income taxes (Six Months) In the first half of 2025, the company recognized a $44 thousand tax benefit, compared to no benefit in the first half of 2024; the effective tax rate remained 0%, significantly below the 21% statutory rate, due to a full valuation allowance against deferred tax assets - Benefit from income taxes was $44 thousand in the first half of 2025, compared to zero in the first half of 2024[165][186] - The effective tax rate was 0% in both the first half of 2025 and 2024, below the 21% statutory rate[186] - The primary reason was a full valuation allowance against deferred tax assets[186] Net loss (Six Months) In the first half of 2025, Greenidge's net loss was $9.7 million, a slight increase from $9.5 million in the first half of 2024, reflecting the combined impact of revenue, operating costs, and other income/expenses - Net loss was $9,682 thousand in the first half of 2025, a 2% increase from $9,512 thousand in the first half of 2024[165][187] Non-GAAP Measures and Reconciliations (Six Months) In the first half of 2025, EBITDA was $0.2 million, a 68% decrease from $0.6 million in the first half of 2024; Adjusted EBITDA was $1.4 million, a 44% decrease from $2.6 million in the prior year period, reflecting the impact of various adjustments including equity-based compensation and asset sales EBITDA and Adjusted EBITDA ($ in thousands) | Metric | First Half 2025 | First Half 2024 | Change ($) | Change (%) | | :---------------- | :------ | :------ | :--------- | :--------- | | EBITDA | $197 | $614 | $(417) | (68)% | | Adjusted EBITDA | $1,422 | $2,552 | $(1,130) | (44)% | - Adjustments include equity-based compensation, loss (gain) on sale of assets, insurance proceeds, loss from liquidated foreign subsidiary, change in fair value of warrant assets, and long-lived asset impairment[188] Liquidity and Capital Resources As of June 30, 2025, Greenidge held $3.4 million in cash and $7.3 million in digital assets; while existing resources and planned asset sales (Mississippi Facility, South Carolina land) are expected to cover operations for the next 12 months, long-term debt obligations, particularly senior notes due October 2026, remain a significant challenge, and the company is exploring various strategic alternatives, including further debt repayment or exchanges - As of June 30, 2025, the company had $3,397 thousand in cash and cash equivalents and $7,299 thousand in digital assets[189] - The company believes existing cash, digital assets, operating cash flows, and proceeds from the sale of the Mississippi Facility or South Carolina Facility will be sufficient to support operations and meet current obligations for the next 12 months[190] - The company anticipates operating cash flows will be insufficient to meet existing long-term debt obligations over the long term, particularly the $44.6 million senior notes due October 31, 2026[190][194] - The company has entered into a definitive agreement to sell South Carolina land for $12.1 million in cash (expected to close no later than August 25, 2025) and an agreement to sell the Mississippi Facility for $3.9 million (expected to close no later than September 16, 2025)[191] - The company has addressed debt through privately negotiated exchange agreements (issuing 1,242,456 shares of Class A common stock and paying $2.6 million in cash for $10.3 million of senior notes) and an exchange offer (purchasing $8.9 million of senior notes for $3.2 million in cash and exchanging $4.8 million of senior notes for $2.2 million in new notes)[192](