DRESDEN, N.Y., Nov. 15, 2021 /PRNewswire/ --
Financial Highlights
- Total revenue increased to $35.8
million, up 484% year-over-year, and up 121% compared to the
second quarter 2021
- Cryptocurrency Mining revenue increased to $31.2 million, up 924% year-over-year, and up
122% compared to the second quarter 2021
- Net loss was $7.9 million for the
third quarter as compared to a loss of $0.3
million in the prior year and net income of $3.5 million in the second quarter of 2021
- Adjusted EBITDA of $21.2 million,
compared to $0.8 million in the prior
year, and $8.1 million in the second
quarter of 2021 – at the high end of October guidance of
$18 million to $22 million
- Adjusted EBITDA margin of 59.2%, compared to 12.7% in the prior
year, and 49.9% in the second quarter of 2021
- Adjusted net income of $12.2
million
- Cash, short term investments and bitcoin holdings of
$53.0 million as of September 30, 2021 and approximately $105 million as of November 14, 2021
Cryptocurrency Mining Highlights
- Mined 729 bitcoins, compared to 246 bitcoins in the third
quarter of the prior year and 315 bitcoins in the second quarter of
2021
- Approximately 15,300 miners deployed with 1.2 EH/s capacity as
of September 30, 2021
- Ordered additional miners after September 30, 2021 bringing total committed
capacity to approximately 49,000 miners and 4.7 EH/s of capacity,
including Greenidge's launch order for Bitmain's new ANTMINER S19
XP
Corporate Highlights
- Appointed Robert Loughran as
Chief Financial Officer
- Raised $101.2 million in net
proceeds through combined debt and equity sales since September 30, 2021
Greenidge Generation Holdings Inc. (NASDAQ: GREE) ("Greenidge"),
a vertically integrated bitcoin mining and power generation company
committed to 100% carbon-neutrality, announced results for the
third quarter ended September 30,
2021.
"Greenidge achieved several important milestones in the third
quarter of 2021, laying a foundation for robust future growth and
solidifying our position as a leading vertically integrated and
carbon-neutral bitcoin miner," said Jeff
Kirt, Chief Executive Officer. "The quarter's results are a
testament to the hard work and dedication of our team. Since the
end of the quarter, we have fortified our liquidity position,
enabling us to advance several key strategic growth initiatives. We
recently announced plans to expand our mining fleet by investing in
state-of-the-art equipment that is by far the most efficient in the
market today. Additionally, we unveiled opportunities to expand our
North American footprint."
Third Quarter 2021 Financial Results
|
|
|
|
|
|
|
Variance
Versus:
|
$ in thousands,
except Adjusted EBITDA margin
|
Q3 2021
|
|
Q3 2020
|
|
Q2 2021
|
|
Q3 2020
|
|
Q2 2021
|
Total
Revenue
|
$ 35,754
|
|
$ 6,123
|
|
$ 16,176
|
|
483.9%
|
|
121.0%
|
Cryptocurrency mining
revenue
|
$ 31,156
|
|
$ 3,043
|
|
$ 14,064
|
|
923.9%
|
|
121.5%
|
Adjusted
EBITDA
|
$ 21,177
|
|
$
775
|
|
$
8,065
|
|
2632.5%
|
|
162.6%
|
Adjusted EBITDA
margin
|
59.2%
|
|
12.7%
|
|
49.9%
|
|
46.5 pts
|
|
9.3 pts
|
Greenidge's revenue for the third quarter was $35.8 million, up 484% compared to the prior year
and up 121% sequentially compared to the second quarter of 2021.
Cryptocurrency Mining revenue was $31.2
million, up 924% versus the prior year and up 122%
sequentially. Power and Capacity revenue was $3.1 million, flat with the prior year and up 46%
sequentially. The merger with Support.com on September 15, 2021 added approximately
$1.5 million to third quarter
revenue.
Net loss was $7.9 million for the
third quarter as compared to a loss of $0.3
million in the prior year and net income of $3.5 million in the second quarter of 2021. The
current quarter included $27.7
million of merger related costs ($26.6 million of which was non-cash),
$2.1 million of public company filing
related costs and $0.1 million of
expansion costs. Excluding these items, adjusted net
income(1) was $12.2
million, compared to adjusted net income of $4.2 million in the second quarter of 2021. There
were no similar costs requiring adjustments to the net loss of
$0.3 million in the third quarter of
2020.
Adjusted EBITDA(1) for the third quarter was
$21.2 million, or 59.2% of revenue,
compared to $0.8 million in the prior
year or 12.7% of revenue, and $8.1
million for the second quarter of 2021 or 49.9% of revenue.
The significant and continuing expansion of Cryptocurrency Mining
drove the growth in Adjusted EBITDA and Adjusted EBITDA
margin(1)(2) as Cryptocurrency Mining generated revenue
per megawatt hour of $358, while
Power and Capacity generated revenue of $69 per megawatt hour.
As of September 30, 2021,
Greenidge had cash, short term investments and fair value of
bitcoin holdings of $53.0
million.
Cryptocurrency Mining Commentary
|
Q3 2021
|
|
Q3 2020
|
|
Q2 2021
|
Bitcoins
mined
|
729
|
|
246
|
|
315
|
Greenidge mined 729 bitcoins during the third quarter, compared
to 246 bitcoins in the third quarter of the prior year and 315
bitcoins in the second quarter of 2021.
As of September 30, 2021,
Greenidge had approximately 15,300 miners deployed on its site
capable of producing an estimated aggregate hash rate capacity of
1.2 EH/s and had entered into additional commitments to acquire
approximately 17,200 additional miners.
Since September 30, 2021,
Greenidge ordered an additional 16,500 miners including Greenidge's
participation as a launch customer for the recently announced
ANTMINER S19 XP from Bitmain, which delivers 27% more efficiency
than any technology currently available. With the full deployment
of these new miners, Greenidge's total fleet is expected to
comprise approximately 49,000 miners and is expected to achieve a
total hash rate capacity of approximately 4.7 EH/s. Greenidge
expects to be able to achieve a total hash rate capacity of at
least 1.4 EH/s by the end of 2021.
In September 2021, Greenidge
entered into an exclusive agreement with a developer for at least
six sites in Texas with over
3,000MW of combined power generation capacity that Greenidge and
the developer have identified as attractive locations for Greenidge
data centers.
In October 2021, Greenidge
announced that it had entered into a Purchase and Sale Agreement
for a site in Spartanburg, South
Carolina, including a 750,000 square foot building and 175
acres of land. The transaction is expected to close in early
December 2021. Greenidge intends to
commence initial mining operations, using portable equipment, at
the Spartanburg facility in
December 2021.
Additionally, Greenidge has entered into an agreement giving it
an exclusive right of first refusal to develop data centers at
multiple power generation sites in Texas comprising over 1,000MW of power
generation assets.
Greenidge intends to develop its next commercial bitcoin mining
location at either the South
Carolina location or one of the Texas locations and is evaluating certain
factors to determine which state and location is best suited for
development.
Corporate Updates
In a separate press release today, Greenidge announced the
appointment of Robert Loughran as
Chief Financial Officer, effective January
1, 2022. Timothy Rainey,
Greenidge's current CFO, will remain with the company as Treasurer
effective January 1, 2022.
In October 2021, Greenidge
successfully closed a $55.2 million
public offering of senior unsecured notes due in 2026, receiving
net proceeds of $53.3 million.
Greenidge has also successfully raised $47.9 million in net proceeds through the sale of
1.98 million shares of its class A common stock since September 30, 2021 pursuant to the previously
announced equity purchase agreement.
The proceeds of the senior note offering and the class A common
stock sales were used for general corporate purposes, including
funding Greenidge's capital expenditures. As of November 14, 2021, Greenidge had cash, short term
investments and fair value of cryptocurrency holdings of
approximately $105 million.
Notes:
|
|
|
|
|
(1)
|
Non-GAAP measure. See
the tables attached to this press release for a reconciliation from
GAAP to non-GAAP measures and below for more details.
|
|
(2)
|
Adjusted EBITDA
Margin is defined as Adjusted EBITDA as a percentage of
revenue.
|
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 plans to expand
operations to multiple locations in North
America.
Use of Non-GAAP Information
To provide investors and
others with additional information regarding the financial results
of Greenidge, we have disclosed in this release certain non-GAAP
operating performance measures of Adjusted EBITDA, Adjusted EBITDA
margin and Adjusted net income. Adjusted EBITDA is defined as
earnings before interest, taxes and depreciation and amortization,
which is then adjusted for stock-based compensation and other
special items determined by management, including, but not limited
to costs associated with the merger with Support, costs of becoming
a public company (which included the costs of a coporate
reorganization from an LLC, public registration of shares and
associated costs) and business expansion costs. Adjusted
EBITDA margin is the percentage of Adjusted EBITDA of revenue.
Adjusted net income is net loss adjusted for the after-tax impacts
of special items determined by management, including but not
limited to costs associated with the merger with Support, costs of
becoming a public company (which included the costs of a coporate
reorganization from an LLC, public registration of shares and
associated costs) and business expansion costs. These non-GAAP
financial measures are a supplement to and not a substitute for or
superior to, the Company's results presented in accordance with
U.S. GAAP. The non-GAAP financial measures presented by the Company
may be different from non-GAAP financial measures presented by
other companies. Specifically, the Company believes the non-GAAP
information provides useful measures to investors regarding the
Company's financial performance by excluding certain costs and
expenses that the Company believes are not indicative of its core
operating results. The presentation of these non-GAAP financial
measures is not meant to be considered in isolation or as a
substitute for results or guidance prepared and presented in
accordance with U.S. GAAP. A reconciliation of the non-GAAP
financial measures to U.S. GAAP results is included herein.
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
(i) the delivery of miners currently on order, including S19 XP
Antminers on order with Bitmain, (ii) the development of facilities
in South Carolina or Texas, (iii) future mining capacity, (iv)
future electrical capacity, (v) the ability to offset carbon
emissions and (vi) the ability to obtain future debt or equity
financing, are forward-looking statements. 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. 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.
GREENIDGE
GENERATION HOLDINGS INC. AND SUBSIDIARIES
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
|
|
|
|
FOR THE THREE
MONTHS ENDED SEPTEMBER 30, 2021, JUNE 30, 2021 AND SEPTEMBER 30,
2020
|
|
Amounts denoted in
000's (except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended:
|
|
Variance
Versus:
|
|
|
|
|
|
|
|
September 30,
2021
|
|
September 30,
2020
|
|
June 30,
2021
|
|
Q3 2021
|
|
Q2 2021
|
REVENUE:
|
|
|
|
|
|
|
|
|
|
|
|
Cryptocurrency
mining
|
$
31,156
|
|
$
3,043
|
|
$
14,064
|
|
923.9%
|
|
121.5%
|
|
Power and
capacity
|
3,077
|
|
3,080
|
|
2,112
|
|
-0.1%
|
|
45.7%
|
|
Services and
other
|
1,521
|
|
-
|
|
-
|
|
NA
|
|
NA
|
|
|
Total
revenue
|
35,754
|
|
6,123
|
|
16,176
|
|
483.9%
|
|
121.0%
|
OPERATING COSTS AND
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue -
cryptocurrency mining
(exclusive of depreciation and amortization)
|
5,974
|
|
1,027
|
|
2,754
|
|
481.7%
|
|
116.9%
|
|
Cost of revenue -
power and capacity
(exclusive of depreciation and amortization)
|
2,831
|
|
3,045
|
|
1,970
|
|
-7.0%
|
|
43.7%
|
|
Cost of revenue -
Services and other
(exclusive of depreciation and amortization)
|
854
|
|
-
|
|
-
|
|
NA
|
|
NA
|
|
Selling, general and
administrative
|
5,446
|
|
1,493
|
|
3,627
|
|
264.8%
|
|
50.2%
|
|
Merger and other
costs (including $26,605
of noncash costs)
|
29,847
|
|
-
|
|
938
|
|
NA
|
|
NA
|
|
Depreciation and
amortization
|
2,667
|
|
1,064
|
|
1,603
|
|
150.7%
|
|
66.4%
|
|
|
(Loss) income from
operations
|
(11,865)
|
|
(506)
|
|
5,284
|
|
2244.9%
|
|
-324.5%
|
OTHER (EXPENSE)
INCOME, NET:
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(1,009)
|
|
-
|
|
(202)
|
|
NA
|
|
399.5%
|
|
Gain (loss) on sale
of digital assets
|
18
|
|
36
|
|
(154)
|
|
-50.0%
|
|
-111.7%
|
|
Other (expense)
income, net
|
(29)
|
|
181
|
|
(13)
|
|
-116.0%
|
|
123.1%
|
|
|
Total other (expense)
income, net
|
(1,020)
|
|
217
|
|
(369)
|
|
-570.0%
|
|
176.4%
|
(LOSS) INCOME BEFORE
INCOME TAXES
|
(12,885)
|
|
(289)
|
|
4,915
|
|
4358.5%
|
|
-362.2%
|
|
(Benefit) provision
for income taxes
|
(4,989)
|
|
-
|
|
1,397
|
|
NA
|
|
NA
|
NET (LOSS)
INCOME
|
$
(7,896)
|
|
$
(289)
|
|
$
3,518
|
|
2632.2%
|
|
-324.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
(0.28)
|
|
|
|
$
0.10
|
|
|
|
|
|
Diluted
|
|
|
$
(0.28)
|
|
|
|
$
0.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net (loss) income to Adjusted EBITDA
|
|
|
|
|
|
|
|
|
Net (Loss)
Income
|
$
(7,896)
|
|
$
(289)
|
|
$
3,518
|
|
|
|
|
Provision for income
taxes
|
(4,989)
|
|
-
|
|
1,397
|
|
|
|
|
Interest expense,
net
|
1,009
|
|
-
|
|
202
|
|
|
|
|
Depreciation and
amortization
|
2,667
|
|
1,064
|
|
1,603
|
|
|
|
|
EBITDA
|
|
|
(9,209)
|
|
775
|
|
6,720
|
|
|
|
|
Stock-based
compensation
|
411
|
|
-
|
|
407
|
|
|
|
|
Merger and other
costs
|
29,847
|
|
-
|
|
938
|
|
|
|
|
Expansion
costs
|
128
|
|
-
|
|
-
|
|
|
|
|
Adjusted
EBITDA
|
$
21,177
|
|
$
775
|
|
$
8,065
|
|
|
|
|
Adjusted
EBITDA percentage of revenue
|
59.2%
|
|
12.7%
|
|
49.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net (loss) income to Adjusted Net income (loss):
|
|
|
|
|
|
|
|
|
Net (Loss)
Income
|
$
(7,896)
|
|
$
(289)
|
|
$
3,518
|
|
|
|
|
Merger & Public
Company filing costs, after tax
|
19,969
|
|
-
|
|
680
|
|
|
|
|
Expansion costs,
after tax
|
93
|
|
-
|
|
-
|
|
|
|
|
Adjusted Net income
(loss):
|
$
12,166
|
|
$
|
(289)
|
|
$
4,198
|
|
|
|
|
|
GREENIDGE
GENERATION HOLDINGS INC. AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
|
|
SEPTEMBER 30, 2021
AND DECEMBER 31, 2020
|
|
|
|
Amounts denoted in
$000's
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2021
|
|
December 31,
2020
|
ASSETS
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
Cash and cash
equivalents
|
$
51,149
|
|
$
5,052
|
|
Short term
investments
|
496
|
|
-
|
|
Digital
assets
|
421
|
|
254
|
|
Accounts
receivable
|
5,501
|
|
390
|
|
Prepaid
expenses
|
5,042
|
|
155
|
|
Emissions and carbon
offset credits
|
1,816
|
|
1,923
|
|
|
Total current
assets
|
64,425
|
|
7,774
|
LONG-TERM
ASSETS:
|
|
|
|
|
Property and
equipment, net
|
121,532
|
|
56,645
|
|
Right-of-use
assets
|
1,369
|
|
-
|
|
Intangible
assets
|
22,493
|
|
-
|
|
Goodwill
|
|
46,349
|
|
-
|
|
Other long-term
assets
|
2,143
|
|
148
|
|
|
Total
assets
|
$
258,311
|
|
$
64,567
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
Accounts
payable
|
$
3,368
|
|
$
1,745
|
|
Accrued emissions
expense
|
1,674
|
|
2,082
|
|
Accrued
expenses
|
9,566
|
|
946
|
|
Accrued interest
expense - related party
|
-
|
|
20
|
|
Notes payable,
current portion
|
17,994
|
|
3,273
|
|
Notes payable -
related party
|
-
|
|
3,573
|
|
Lease obligation,
current portion
|
852
|
|
-
|
|
|
Total current
liabilities
|
33,454
|
|
11,639
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
Deferred tax
liability
|
3,959
|
|
-
|
|
Notes payable, net of
current portion
|
7,369
|
|
1,364
|
|
Lease obligation, net
of current portion
|
111
|
|
-
|
|
Asset retirement
obligations
|
2,380
|
|
2,277
|
|
Environmental trust
liability
|
4,994
|
|
4,927
|
|
Other long-term
liabilities
|
242
|
|
-
|
|
|
Total
liabilities
|
52,509
|
|
20,207
|
STOCKHOLDERS'
EQUITY
|
205,802
|
|
44,360
|
|
|
Total liabilities and
stockholders' equity
|
$
258,311
|
|
$
64,567
|
View original
content:https://www.prnewswire.com/news-releases/greenidge-generation-reports-third-quarter-2021-results-301423967.html
SOURCE Greenidge Generation Holdings Inc.