First Quarter 2022 Highlights
- Results in line with guidance provided on April 21, 2022
- Total Revenue increased to $37.7
million, up 240% year-over-year
- Cryptocurrency datacenter revenue increased to $23.2 million, up 158% year-over-year
- GAAP net loss was $0.4
million
- Adjusted EBITDA of $9.2
million
- LTM Adjusted EBITDA of $57.9
million
- Produced approximately 561 bitcoin during the first
quarter
- Mining capacity of approximately 1.6 EH/s from approximately
19,400 miners at March 31, 2022
- Approximately $126 million of
liquidity as of March 31, 2022
consisting of approximately $98
million in cash and fair value of cryptocurrency holdings
and approximately $28 million in
undrawn financing commitments
- Approximately $135 million of
additional cash on deposit with Bitmain as of March 31, 2022
- 100% of miners scheduled for delivery to date have been
deployed
April 2022 Operational
Update
- Produced approximately 197 bitcoin in April 2022
- Approximately 1.6 EH/s of mining capacity from approximately
19,600 miners as of April 30,
2022
- 22% of hash rate capacity located at Spartanburg, SC facility
FAIRFIELD, Conn., May 16, 2022
/PRNewswire/ -- Greenidge Generation Holdings Inc. (NASDAQ: GREE)
("Greenidge"), a vertically integrated cryptocurrency datacenter
and power generation company, today announced financial and
operating results for the first quarter of 2022 and also provided
an operational update for the month of April
2022.
"Consistent with the estimates we released on April 21, Greenidge demonstrated another strong
quarter of significant revenue growth and substantial Adjusted
EBITDA generation," said Jeff Kirt,
Chief Executive Officer of Greenidge. "In addition to announcing
our quarterly results today, we have begun reporting monthly
operational statistics. Our April results were highlighted by
production of 197 bitcoin from 1.6 EH/s of hashrate capacity as we
continue to expand capacity at our South
Carolina facility."
First Quarter 2022 Financial Results
$ in thousands, except Adjusted EBITDA
margin
|
|
Q1 2022
|
|
|
Q1 2021
|
|
|
Variance
|
|
Total
Revenue
|
|
$
|
37,655
|
|
|
$
|
11,063
|
|
|
|
240.4
|
%
|
Cryptocurrency
datacenter revenue
|
|
$
|
23,232
|
|
|
$
|
8,997
|
|
|
|
158.2
|
%
|
Power and capacity
revenue
|
|
$
|
5,923
|
|
|
$
|
2,066
|
|
|
|
186.7
|
%
|
Adjusted
EBITDA
|
|
$
|
9,213
|
|
|
$
|
4,221
|
|
|
|
118.3
|
%
|
Adjusted EBITDA
margin
|
|
|
24.5
|
%
|
|
|
38.2
|
%
|
|
|
|
Greenidge's revenue for the first quarter was $37.7 million, up 240% compared to the prior year
period. Cryptocurrency Datacenter revenue for the first quarter was
$23.2 million, up 158% versus the
prior year period, and Power and Capacity revenue for the first
quarter was $5.9 million, up 187%
compared to the prior year period. Greenidge's Support.com
subsidiary, which was acquired in September
2021, generated approximately $8.5
million in first quarter revenue and was not included in
Greenidge's first quarter 2021 results.
Greenidge produced approximately 561 bitcoin during the first
quarter of 2022, compared to 213 bitcoin in the first quarter of
2021.
Net loss was $0.4 million for the
first quarter as compared to net income of $1.3 million in the prior year period. The first
quarter of 2022 included $2.1 million
of expansion costs and $0.2 million
of merger and public company filing costs. Excluding these items,
Adjusted net income for the first quarter was $1.3 million, compared to Adjusted net income of
$1.4 million in the first quarter of
2021.
Adjusted EBITDA for the first quarter was $9.2 million, or 24.5% of revenue, compared to
the prior year period of $4.2
million, or 38.2% of revenue.
Adjusted net income, Adjusted EBITDA, Adjusted EBITDA margin and
last twelve months ("LTM") Adjusted EBITDA are non-GAAP measures.
See the tables attached to this press release for a reconciliation
from GAAP to non-GAAP measures and Use of Non-GAAP
Information below for more details
Greenidge ended the first quarter with approximately
$98 million of cash and fair market
value of cryptocurrency holdings, of which, less than $2 million was cryptocurrency holdings. Greenidge
had approximately $28 million in
undrawn financing commitments at the end of the first quarter,
bringing Greenidge's total liquidity to approximately $126 million as of March
31, 2022. In addition, Greenidge had approximately
$135 million of cash on deposit with
Bitmain as of March 31, 2022.
Capital Discussion
During the first quarter, as previously disclosed, Greenidge
successfully completed two non-dilutive debt financings totaling
approximately $108 million in
available funding, of which $81
million was funded during the quarter. Greenidge
entered into a secured equipment financing that matures in
April 2024 with $81 million of available capacity, of which
$54 million was funded. Greenidge
also entered into a fully-drawn secured promissory note for
approximately $27 million that
matures in July 2022, with extensions
available until December 2022.
April 2022 Operational
Update
During the month of April 2022,
Greenidge produced approximately 197 bitcoin. As of April 30, 2022, Greenidge had approximately 1.6
EH/s of mining capacity from approximately 19,600 miners.
Approximately 22% of the capacity was located at Greenidge's
facility in Spartanburg, SC which
was acquired and commenced operations in December 2022.
About Greenidge Generation Holdings Inc.
Greenidge Generation Holdings Inc. (NASDAQ: GREE) is a
vertically integrated cryptocurrency datacenter and power
generation company. Greenidge is committed to 100% carbon-neutral
datacenter operations at all of its locations by utilizing
low-carbon sources of energy and offsetting its carbon
footprint.
Use of Non-GAAP Information
To provide investors and others with additional information
regarding the financial results of Greenidge (the "Company"), the
Company has disclosed in this press release certain non-GAAP
operating performance measures of Adjusted EBITDA, Adjusted EBITDA
margin, LTM Adjusted EBITDA 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.com, costs of becoming a public company (which
included the costs of a corporate reorganization from an LLC,
public registration of shares and associated costs), business
expansion costs, impairment of goodwill and remeasurement of
environmental liability. Adjusted EBITDA margin is the percentage
of Adjusted EBITDA of revenue. LTM Adjusted EBITDA is Adjusted
EBITDA over the last twelve-month period. Adjusted net income is
net income (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.com, costs of becoming a
public company (which included the costs of a corporate
reorganization from an LLC, public registration of shares and
associated costs), business expansion costs, impairment of goodwill
and remeasurement of environmental liability. 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 with Bitmain, (ii)
the development of facilities in South
Carolina, (iii) future mining capacity, (iv) future
electrical capacity, (v) future liquidity 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 I,
Item 1A. "Risk Factors" of Greenidge's Annual Report on Form 10-K
for the year ended December 31, 2021,
and its other filings with the Securities and Exchange Commission,
as well as statements about or relating to or otherwise affected by
the completion of management's final review of the financial
results and Greenidge's other closing procedures. 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 MARCH 31, 2022 AND
2021
|
|
Amounts denoted in 000's (except per share
data)
|
|
|
|
Three Months Ended:
|
|
|
|
|
|
March 31, 2022
|
|
|
March 31, 2021
|
|
|
|
Variance
|
|
REVENUE:
|
|
|
|
|
|
|
|
|
|
|
Cryptocurrency datacenter
|
|
$
|
23,232
|
|
|
$
|
8,997
|
|
|
|
|
158
|
%
|
Power and capacity
|
|
|
5,923
|
|
|
|
2,066
|
|
|
|
|
187
|
%
|
Services and other
|
|
|
8,500
|
|
|
|
-
|
|
|
|
N/A
|
|
Total revenue
|
|
|
37,655
|
|
|
|
11,063
|
|
|
|
|
240
|
%
|
OPERATING COSTS AND
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue - Cryptocurrency datacenter
(exclusive of depreciation and
amortization)
|
|
|
8,456
|
|
|
|
2,574
|
|
|
|
|
229
|
%
|
Cost of revenue - Power and capacity
(exclusive of depreciation and
amortization)
|
|
|
4,023
|
|
|
|
2,009
|
|
|
|
|
100
|
%
|
Cost of revenue - Services and other
(exclusive of depreciation and
amortization)
|
|
|
4,071
|
|
|
|
-
|
|
|
|
N/A
|
|
Selling, general and administrative
|
|
|
14,392
|
|
|
|
3,229
|
|
|
|
|
346
|
%
|
Merger and other costs
|
|
|
213
|
|
|
|
105
|
|
|
|
|
103
|
%
|
Depreciation and amortization
|
|
|
3,978
|
|
|
|
1,261
|
|
|
|
|
215
|
%
|
Loss from operations
|
|
|
2,522
|
|
|
|
1,885
|
|
|
|
|
34
|
%
|
OTHER (EXPENSE) INCOME,
NET:
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
(3,353)
|
|
|
|
(188)
|
|
|
|
|
1684
|
%
|
(Loss) gain on sale of digital assets
|
|
|
(5)
|
|
|
|
295
|
|
|
|
|
-102
|
%
|
Other income, net
|
|
|
39
|
|
|
|
19
|
|
|
|
|
105
|
%
|
Total other (expense) income,
net
|
|
|
(3,319)
|
|
|
|
126
|
|
|
|
|
-2731
|
%
|
(LOSS) INCOME BEFORE
INCOME TAXES
|
|
|
(797)
|
|
|
|
2,011
|
|
|
|
|
-140
|
%
|
(Benefit) provision for income taxes
|
|
|
(368)
|
|
|
|
732
|
|
|
|
|
-150
|
%
|
NET (LOSS)
INCOME
|
|
$
|
(429)
|
|
|
$
|
1,279
|
|
|
|
|
-134
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.01)
|
|
|
$
|
0.02
|
|
|
|
|
|
Diluted
|
|
$
|
(0.01)
|
|
|
$
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net (loss) income to Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
$
|
(429)
|
|
|
$
|
1,279
|
|
|
|
|
|
(Benefit) provision for
income taxes
|
|
|
(368)
|
|
|
|
732
|
|
|
|
|
|
Interest expense,
net
|
|
|
3,353
|
|
|
|
188
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
3,978
|
|
|
|
1,261
|
|
|
|
|
|
EBITDA
|
|
|
6,534
|
|
|
|
3,460
|
|
|
|
|
|
Stock-based
compensation
|
|
|
362
|
|
|
|
656
|
|
|
|
|
|
Merger and other
costs
|
|
|
213
|
|
|
|
105
|
|
|
|
|
|
Expansion
costs
|
|
|
2,104
|
|
|
|
-
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
9,213
|
|
|
$
|
4,221
|
|
|
|
|
|
Adjusted EBITDA
percentage of revenue
|
|
|
24.5
|
%
|
|
|
38.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net (loss) income to Adjusted Net
income:
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
$
|
(429)
|
|
|
$
|
1,279
|
|
|
|
|
|
Merger and other costs,
after tax
|
|
|
156
|
|
|
|
76
|
|
|
|
|
|
Expansion costs, after
tax
|
|
|
1,536
|
|
|
|
-
|
|
|
|
|
|
Adjusted Net
income:
|
|
$
|
1,263
|
|
|
$
|
1,355
|
|
|
|
|
|
GREENIDGE GENERATION HOLDINGS INC. AND
SUBSIDIARIES
|
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
|
MARCH 31, 2022 AND DECEMBER 31,
2021
|
|
Amounts denoted in $000's
|
|
|
|
|
|
|
|
|
March 31,2022
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
December 31, 2021
|
|
ASSETS
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
96,453
|
|
|
$
|
82,599
|
|
|
Short term
investments
|
|
-
|
|
|
|
496
|
|
|
Digital
assets
|
|
393
|
|
|
|
476
|
|
|
Accounts
receivable
|
|
5,569
|
|
|
|
5,524
|
|
|
Prepaid
expenses
|
|
10,286
|
|
|
|
9,146
|
|
|
Emissions and carbon
offset credits
|
|
1,025
|
|
|
|
2,361
|
|
|
|
|
|
Total current
assets
|
|
113,726
|
|
|
|
100,602
|
|
LONG-TERM
ASSETS:
|
|
|
|
|
|
|
Property and equipment,
net
|
|
292,051
|
|
|
|
217,091
|
|
|
Right-of-use
assets
|
|
1,375
|
|
|
|
1,472
|
|
|
Intangible
assets
|
|
3,305
|
|
|
|
3,537
|
|
|
Goodwill
|
|
3,062
|
|
|
|
3,062
|
|
|
Deferred tax
assets
|
|
16,846
|
|
|
|
15,058
|
|
|
Other long-term
assets
|
|
989
|
|
|
|
445
|
|
|
|
|
|
Total assets
|
$
|
431,354
|
|
|
$
|
341,267
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Accounts
payable
|
$
|
14,823
|
|
|
$
|
5,923
|
|
|
Accrued emissions
expense
|
|
2,637
|
|
|
|
2,634
|
|
|
Accrued
expenses
|
|
11,676
|
|
|
|
10,375
|
|
|
Income taxes
payable
|
|
3,879
|
|
|
|
2,481
|
|
|
Long-term debt, current
portion
|
|
66,729
|
|
|
|
19,577
|
|
|
Lease obligation,
current portion
|
|
500
|
|
|
|
736
|
|
|
|
|
|
Total current
liabilities
|
|
100,244
|
|
|
|
41,726
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
|
|
Long-term debt, net of
current portion and deferred financing fees
|
|
103,191
|
|
|
|
75,251
|
|
|
Lease obligation, net
of current portion
|
|
195
|
|
|
|
193
|
|
|
Asset retirement
obligations
|
|
2,691
|
|
|
|
2,691
|
|
|
Environmental
liability
|
|
8,615
|
|
|
|
8,615
|
|
|
Other long-term
liabilities
|
|
366
|
|
|
|
368
|
|
|
|
|
|
Total
liabilities
|
|
215,302
|
|
|
|
128,844
|
|
STOCKHOLDERS'
EQUITY
|
|
216,052
|
|
|
|
212,423
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
|
431,354
|
|
|
$
|
341,267
|
|
GREENIDGE GENERATION HOLDINGS INC. AND
SUBSIDIARIES
|
|
LTM ADJUSTED EBITDA
|
|
RECONCILIATION OF NET (LOSS) INCOME TO ADJUSTED
EBITDA
|
|
Amounts denoted in 000's
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trailing
|
|
|
Fiscal Year
|
|
|
|
|
|
|
|
|
12 Months
|
|
|
2021
|
|
|
Q1 2021
|
|
|
Q1 2022
|
|
|
March 31, 2022
|
|
Net (loss)
income
|
$
|
(44,480)
|
|
|
$
|
1,279
|
|
|
$
|
(429)
|
|
|
$
|
(46,188)
|
|
Provision (benefit) for
income taxes
|
|
408
|
|
|
|
732
|
|
|
|
(368)
|
|
|
|
(692)
|
|
Interest expense,
net
|
|
3,692
|
|
|
|
188
|
|
|
|
3,353
|
|
|
|
6,857
|
|
Depreciation and
amortization
|
|
8,855
|
|
|
|
1,261
|
|
|
|
3,978
|
|
|
|
11,572
|
|
EBITDA
|
|
(31,525)
|
|
|
|
3,460
|
|
|
|
6,534
|
|
|
|
(28,451)
|
|
Stock-based
compensation
|
|
3,770
|
|
|
|
656
|
|
|
|
362
|
|
|
|
3,476
|
|
Goodwill
impairment
|
|
42,307
|
|
|
|
-
|
|
|
|
-
|
|
|
|
42,307
|
|
Merger and other
costs
|
|
32,272
|
|
|
|
105
|
|
|
|
213
|
|
|
|
32,380
|
|
Expansion
costs
|
|
2,362
|
|
|
|
-
|
|
|
|
2,104
|
|
|
|
4,466
|
|
Remeasurement of
environmental liability
|
|
3,688
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,688
|
|
Adjusted
EBITDA
|
$
|
52,874
|
|
|
$
|
4,221
|
|
|
$
|
9,213
|
|
|
$
|
57,866
|
|
View original
content:https://www.prnewswire.com/news-releases/greenidge-generation-reports-first-quarter-2022-results-and-provides-april-2022-operational-update-301548129.html
SOURCE Greenidge Generation Holdings Inc.