Greenidge Generation(GREE) - 2024 Q1 - Quarterly Report

Revenue Performance - Total revenue for the three months ended March 31, 2024, was $19.3 million, a 28% increase from $15.2 million in the same period in 2023[114] - Datacenter hosting revenue increased by 31% to $9.1 million, up from $6.9 million year-over-year[114] - Cryptocurrency mining revenue rose by 9% to $7.0 million compared to $6.5 million in the prior year[114] - Power and capacity revenue surged by 72% to $3.0 million, up from $1.8 million in the previous year[114] - Datacenter hosting revenue increased by $2.2 million, or 31%, to $9.1 million for the three months ended March 31, 2024, compared to $6.9 million in the same period of 2023[123] - Cryptocurrency mining revenue rose by $0.5 million, or 9%, to $7.0 million, with approximately 69% of the increase attributed to the rise in average bitcoin price, which was 133% higher year-over-year[118] - Power and capacity revenue increased by $1.3 million, or 72%, to $3.0 million, driven by higher sales volume and average prices[125] - Total revenue for the three months ended March 31, 2024, was $19.3 million, a 28% increase from $15.2 million in the prior year[126] Financial Losses and Improvements - The operating loss decreased by 67% to $1.9 million from $5.7 million in the same quarter of 2023[114] - Net loss from continuing operations improved by 54% to $4.0 million compared to $8.8 million in the prior year[114] - Adjusted EBITDA from continuing operations was $2.7 million, a significant improvement from a loss of $1.1 million in the same quarter of 2023[114] - The company reported an operating loss of $1.9 million for the three months ended March 31, 2024, an improvement of $3.8 million compared to the operating loss of $5.7 million in the same period of 2023[130] - Net loss from continuing operations was $4.0 million for the three months ended March 31, 2024, compared to a net loss of $8.8 million in the prior year[134] - Adjusted operating loss from continuing operations improved to $(1,286) million in Q1 2024 from $(5,794) million in Q1 2023, a 78% increase[140] - Net loss from continuing operations decreased to $(4,038) million in Q1 2024, down 54% from $(8,842) million in Q1 2023[140] - Adjusted EBITDA from continuing operations was $2,657 million in Q1 2024, compared to $(1,095) million in Q1 2023, representing a 343% increase[140] Cash Flow and Financing - Cash and cash equivalents stood at $14.3 million as of March 31, 2024, with ongoing reliance on debt and equity financing[141] - Debt restructuring reduced the balance with NYDIG from $75.8 million to $17.3 million[143] - The company received approximately $28 million from the sale of upgraded mining facilities and land to NYDIG, closing on November 9, 2023[147] - A securities purchase agreement with Armistice Capital generated gross proceeds of $6.0 million in February 2024[152] - Management anticipates needing additional capital to support ongoing expenses and debt servicing requirements[153] - Net cash used for operating activities was $4.99 million for the three months ended March 31, 2024, compared to $0.607 million for the same period in 2023, primarily due to the purchase of additional Regional Greenhouse Gas Initiative credits[159] - Net cash used in investing activities decreased to $0.952 million for the three months ended March 31, 2024, from $5.867 million in the same period of 2023, attributed to lower purchases of property and equipment[160] - Net cash provided by financing activities increased to $7.038 million for the three months ended March 31, 2024, compared to $4.813 million in 2023, driven by a $6 million increase from the issuance of common stock[161] Operational Metrics - The company operated approximately 28,800 miners with a combined capacity of 3.0 EH/s as of March 31, 2024[101] - The average active hash rate for company-owned miners decreased by 15% to 846,840 EH/s, while hosted miners increased by 22% to 1,736,730 EH/s[118] - Total bitcoins produced decreased by 289, or 41%, to 409 bitcoins for the three months ended March 31, 2024, compared to 698 bitcoins in the same period of 2023[118] - The average cost to mine one bitcoin was $27,396, representing 52.5% of the value of each bitcoin mined, which was $52,231[120] Environmental and Regulatory Matters - Environmental liabilities recognized as of March 31, 2024, totaled $30.229 million, with no charges for remeasurement during the three months ended March 31, 2024[182] - The company has recorded a total environmental liability of $30.2 million for remediation of coal ash pond and landfill sites inherited from legacy operations[182] - An impairment charge of $4 million was recorded for the year ended December 31, 2023, related to the remaining value of a building in South Carolina deemed no longer recoverable[181] - The company recognized a noncash impairment charge of $176.3 million for the year ended December 31, 2022, due to declines in bitcoin prices and increased energy costs[179] Company Status and Growth - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to rely on certain disclosure exemptions[185] - The company can delay the adoption of new or revised accounting standards until they apply to private companies[187] - The company will remain an "emerging growth company" for up to five years or until total annual gross revenues exceed $1.235 billion[188] - The company will also cease to be an emerging growth company if the market value of its Class A common stock held by non-affiliates exceeds $700 million[188] - The company has not issued more than $1 billion in non-convertible debt during the preceding three-year period, allowing it to maintain its status[188] - The company is not required to provide quantitative and qualitative disclosures about market risk as a smaller reporting company[189] Future Plans and Developments - The company closed a land purchase in Columbus, Mississippi, for $1.45 million, providing access to 32.5 MW of additional power capacity[106] - The company is actively pursuing acquisitions of properties for AI/GPU data centers and bitcoin mining facilities to leverage low-cost power[108] - The company is evaluating future uses of remaining real estate assets in South Carolina, including potential development or sale arrangements[155]