DRESDEN, N.Y., Oct. 4, 2021 /PRNewswire/ -- Greenidge
Generation Holdings Inc. (NASDAQ: GREE) ("Greenidge") today
announced selected preliminary financial and operating results for
the three months ended September 30,
2021.
For the three months ended September 30,
2021, Greenidge expects to report revenues in a range of
$33 million to $37 million, net loss in a range of $(19) million to $(16)
million, and Adjusted EBITDA in a range of $18 million to $22
million. The expected net loss is driven by approximately
$30 million of charges associated
with the merger with Support.com, Inc. ("Support.com") (including
approximately $27 million of noncash
charges associated with the issuance of shares and warrants that
were contingent upon closing of the merger, and other public
company filing related costs).
Greenidge mined 729 bitcoin during the third quarter and as of
September 30, 2021 had approximately
15,300 miners in operation with 1.2 EH/s of combined capacity.
Greenidge ended the quarter with $52
million of cash and fair market value of cryptocurrency
holdings.
Preliminary Operating Results
The preliminary
financial results set forth above for the three months ended
September 30, 2021 reflect
preliminary estimates with respect to such results based solely on
currently available information, which is subject to change.
Readers are cautioned not to place undue reliance on such
preliminary operating results, which constitute forward-looking
statements. Greenidge has not completed its standard closing
process, including the completion of all of its controls
procedures, which could identify adjustments causing the actual
results to be different from the expectations presented in this
release. Additionally, Greenidge has not completed its analysis of
purchase accounting associated with the acquisition of Support.com,
including the finalization of the valuation of the associated
assets and liabilities of Support.com and also needs to complete
its review of the tax implications of the merger and related costs.
These estimates should not be viewed as a substitute for
Greenidge's full quarterly financial statements which will be
prepared in accordance with U.S. GAAP.
About Greenidge Generation Holdings Inc.
Greenidge
Generation Holdings Inc. (NASDAQ: GREE) is a vertically
integrated bitcoin mining and power generation company. Greenidge
is committed to 100% carbon-neutral bitcoin mining at all of its
locations by utilizing low-carbon sources of energy and offsetting
its carbon footprint. Greenidge currently operates one facility in
upstate New York and expects to
expand operations to a second location in South
Carolina in the upcoming months, which is expected to source
the majority of its electricity from zero-carbon sources.
Support.com, a Greenidge subsidiary, is a leading provider of
customer and technical support solutions delivered by home-based
employees.
Forward-Looking Statements
This press release includes
certain statements that may constitute "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. All statements other than statements of historical fact
are forward-looking statements for purposes of federal and state
securities laws. These forward-looking statements involve
uncertainties that could significantly affect Greenidge's financial
or operating results. These forward-looking statements may be
identified by terms such as "anticipate," "believe," "continue,"
"foresee," "expect," "intend," "plan," "may," "will," "would,"
"could," and "should," and the negative of these terms or other
similar expressions. Forward-looking statements are based on
current beliefs and assumptions that are subject to risks and
uncertainties and are not guarantees of future performance.
Forward-looking statements in this press release include, among
other things, statements regarding the business plan, business
strategy and operations of Greenidge in the future. In addition,
all statements that address operating performance and future
performance, events or developments that are expected or
anticipated to occur in the future, such as statements concerning
the preliminary financial results for the three months ended
September 30, 2021, including
projections of Greenidge's third quarter 2021 estimated ranges of
revenue, net loss and Adjusted EBITDA. Forward-looking
statements are subject to a number of risks, uncertainties and
assumptions. Matters and factors that could cause actual results to
differ materially from those expressed or implied in such
forward-looking statements include but are not limited to the
matters and factors described in Part II, Item 1A. "Risk Factors"
of Greenidge's Quarterly Reports on Form 10-Q, and its other
filings with the Securities and Exchange Commission, as well as
statements about or relating to or otherwise affected by: (i) the
ability to negotiate or execute definitive documentation with
respect to a facility in Spartanburg, South Carolina on
terms and conditions that are acceptable to Greenidge, whether on a
timely basis or at all; (ii) the ability to recognize the
anticipated objectives and benefits of an expansion into a facility
in Spartanburg, South
Carolina; (iii) the ability to recognize the anticipated
objectives and any benefits, including the anticipated tax
treatment, of the acquisition of Support.com; (iv) changes in
applicable laws, regulations or permits affecting Greenidge's
operations or the industries in which it operates, including
regulation regarding power generation, cryptocurrency usage and/or
cryptocurrency mining; (v) any failure to obtain adequate financing
on a timely basis and on acceptable terms with regard to growth
strategies or operations; (vi) fluctuations in the market pricing
of bitcoin and other cryptocurrencies; (vii) loss of public
confidence in, or use cases of, bitcoin and other cryptocurrencies;
(viii) the potential of cryptocurrency market manipulation; (x) the
economics of mining cryptocurrency, including as to variables or
factors affecting the cost, efficiency and profitability of mining;
(xi) the availability, delivery schedule and cost of equipment
necessary to maintain and grow the business and operations of
Greenidge, including mining equipment and equipment meeting the
technical or other specifications required to achieve Greenidge's
growth strategy, (xii) the possibility that Greenidge may be
adversely affected by other economic, business or competitive
factors, including factors affecting the industries in which it
operates or upon which it relies and is dependent; (xiii) the
ability to expand successfully to other facilities, mine other
cryptocurrencies or otherwise expand the business; (xiv) changes in
tax regulations applicable to Greenidge, its assets or
cryptocurrencies, including bitcoin; (xv) any litigation involving
Greenidge; (xvi) costs and expenses relating to cryptocurrency
transaction fees and fluctuation in cryptocurrency transaction
fees; (xvii) the condition of Greenidge's physical assets,
including that Greenidge's current single operating facility may
realize material, if not total, loss and interference as a result
of equipment malfunction or break-down, physical disaster, data
security breach, computer malfunction or sabotage; and (xix) the
actual and potential economic fallout resulting from the COVID-19
pandemic. Consequently, all of the forward-looking statements made
in this press release are qualified by the information contained
under this caption. No assurance can be given that these are all of
the factors that could cause actual results to vary materially from
the forward-looking statements in this press release. You should
not put undue reliance on forward-looking statements. No assurances
can be given that any of the events anticipated by the
forward-looking statements will transpire or occur, or if any of
them do occur, the actual results, performance, or achievements of
Greenidge could differ materially from the results expressed in, or
implied by, any forward-looking statements. All forward-looking
statements speak only as of the date of this press release and
Greenidge does not assume any duty to update or revise any
forward-looking statements included in this press release, whether
as a result of new information, the occurrence of future events,
uncertainties or otherwise, after the date of this press
release.
Non-GAAP Financial Measures
From time to time
Greenidge utilizes certain financial measures that are not prepared
or calculated in accordance with GAAP to assess financial
performance and profitability.
"EBITDA" is defined as earnings before interest, taxes, and
depreciation and amortization. "Adjusted EBITDA" is defined as
EBITDA adjusted for stock-based compensation and other special
items determined by management, including, but not limited to,
acquisition related expenses, business development, fair value
adjustments for certain financial liabilities (including asset
retirement obligations), costs associated with debt and equity
transactions, and impairment charges as they are not indicative of
business operations. Adjusted EBITDA is intended as a supplemental
measure of Greenidge's performance that is not presented in
accordance with GAAP. Greenidge believes that the use of EBITDA and
Adjusted EBITDA provides an additional tool for investors to use in
evaluating ongoing operating results and trends and in comparing
its financial measures with those of comparable companies, which
may present similar non-GAAP financial measures to investors.
However, you should be aware that when evaluating EBITDA and
Adjusted EBITDA, Greenidge may incur future expenses similar to
those excluded when calculating these measures. In addition,
Greenidge's presentation of these measures should not be construed
as an inference that its future results will be unaffected by
unusual or non-recurring items. Greenidge's computation of Adjusted
EBITDA may not be comparable to other similarly titled measures
computed by other companies, because all companies may not
calculate Adjusted EBITDA in the same fashion.
Because of these limitations, EBITDA and Adjusted EBITDA should
not be considered in isolation or as a substitute for performance
measures calculated in accordance with GAAP. Greenidge compensates
for these limitations by relying primarily on its GAAP results and
using EBITDA and Adjusted EBITDA on a supplemental basis. You
should review the reconciliation of net loss to EBITDA and Adjusted
EBITDA below and not rely on any single financial measure to
evaluate Greenidge's business.
The following table reconciles the expected range of net loss to
the expected ranges of EBITDA and Adjusted EBITDA for the three
months ended September 30, 2021 (in
millions):
($ in
millions)
|
Three Months
Ended
September 30, 2021
|
Net Loss
|
$ (19)
- $ (16)
|
Taxes
|
3
- 4
|
Depreciation and amortization
|
3
|
Interest
|
1
|
EBITDA
|
(12)
- (8)
|
Stock-based compensation
|
-
|
Merger
and public company filing related costs - noncash (1)
|
27
|
Merger
and public company filing related costs - cash (1)
|
3
|
Adjusted
EBITDA
|
$ 18
- $ 22
|
|
|
(1)
|
Merger and public
company filing related costs are associated with the merger with
Support.com and non-recurring charges associated with the issuance
of equity instruments that were contingent upon closure of the
merger, as well as legal and other professional fees associated
with the merger and becoming a public company.
|
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SOURCE Greenidge Generation Holdings Inc.