Greenidge Generation(US:GREE)2025-11-13 13:32Revenue Performance - Total revenue for the three months ended September 30, 2025, was $15.22 million, an increase of 23% compared to $12.35 million in the same period of 2024[137]. - Cryptocurrency mining revenue increased by $0.9 million, or 28%, to $4.2 million, driven by an 87% increase in the average bitcoin price[141][142]. - Power and capacity revenue rose by $2.14 million, or 83%, to $4.74 million, reflecting favorable power economics[137]. - Datacenter hosting revenue decreased by $186,000, or 3%, to $6.30 million, with a decline in MWhs dedicated to hosting[137]. - Total revenue for the nine months ended September 30, 2025, increased by $2.6 million, or 6%, to $47.3 million compared to $44.7 million in 2024[165]. Profitability Metrics - Operating income for the three months ended September 30, 2025, was $304,000, a significant improvement from a loss of $4.65 million in the same period of 2024[137]. - The company reported a net income of $11.96 million for the three months ended September 30, 2025, compared to a net loss of $6.37 million in the prior year[137]. - EBITDA for the period was $15.23 million, representing a dramatic increase from a loss of $1.26 million in the same quarter of 2024[137]. - Net income for the three months ended September 30, 2025, was $12.0 million, a significant improvement from a net loss of $6.4 million in the prior year[158]. - Adjusted EBITDA for the three months ended September 30, 2025, was $1.7 million, compared to a loss of $0.2 million in the same period of 2024, reflecting a substantial operational improvement[163]. - Net income from operations improved by $18.2 million, resulting in a net income of $2.3 million compared to a loss of $15.9 million in the prior year[165]. Mining Operations - The company operated approximately 25,400 miners with a combined capacity of 2.9 EH/s, of which 18,200 miners (1.8 EH/s) were for datacenter hosting[140]. - The average cost to mine one bitcoin increased to $70,333 for the three months ended September 30, 2025, compared to $49,151 in the same period of 2024, representing a 43% increase[145]. - The value of each bitcoin mined rose to $116,056, resulting in the cost to mine one bitcoin being 60.6% of its value, down from 79.7% in the prior year[145]. - The average active hash rate for company-owned miners increased by 11% to 878,530 EH/s, while hosted miners decreased by 18% to 1,349,490 EH/s[167]. - The fleet of miners had an average efficiency of 21.3 J/TH, with no scheduled downtime reported[171]. Expenses and Costs - Total cost of revenue (exclusive of depreciation) rose by $1.7 million, or 18%, to $11.0 million, primarily due to a 51% increase in natural gas prices[149]. - Selling, general and administrative expenses decreased by $0.7 million, or 18%, to $3.1 million, mainly due to declines in payroll and insurance expenses[151]. - Total operating costs and expenses decreased by $2.1 million, or 4%, to $52.8 million, with a notable reduction in selling, general, and administrative expenses by 32%[165]. - Selling, general and administrative expenses decreased by $4.2 million, or 32%, to $9.0 million for the nine months ended September 30, 2025, compared to the prior year period[179]. Cash Flow and Debt Management - Cash and cash equivalents as of September 30, 2025, were $7.6 million, with digital assets valued at $6.1 million[189]. - Net cash used for operating activities was $10.4 million for the nine months ended September 30, 2025, compared to $8.3 million in the prior year[199]. - Net cash provided by investing activities was $18.0 million for the nine months ended September 30, 2025, compared to net cash used of $4.4 million in the prior year[200]. - The company extinguished $80.3 million of debt through asset sales and restructuring activities since 2022[190]. - Projected operating cash flows are insufficient to meet existing debt obligations of $38.4 million due on October 31, 2026[191]. Regulatory and Compliance - The company qualifies as an "emerging growth company" under the JOBS Act and intends to rely on exemptions from certain disclosure requirements[206]. - The company will remain an "emerging growth company" until the earliest of five years from now, total annual gross revenues exceeding $1.235 billion, or the market value of its Class A common stock exceeding $700 million[208]. - The company has elected to take advantage of the extended transition period for adopting new accounting standards, which may affect comparability with other companies[207]. - The company is not required to provide quantitative and qualitative disclosures about market risk as a smaller reporting company[209]. - The company is exempt from certain requirements under the Sarbanes-Oxley Act, including auditor reports on internal controls over financial reporting[210].