Greenidge Generation Holdings Stock Price, News & Analysis

Greenidge Generation Holdings Inc. (Nasdaq: GREE) is described in its public disclosures as a vertically integrated power generation company with a focus on cryptocurrency mining and related datacenter activities. According to company materials, it owns and operates a vertically integrated cryptocurrency data center and conducts operations through segments that include crypto mining, datacenter hosting, and power and capacity. The company is classified in the Data Processing, Hosting, and Related Services industry within the Information sector.

Greenidge’s business model combines power generation with digital asset infrastructure. The company has stated that its cryptocurrency data center operations generate revenue in the form of bitcoin by earning bitcoin as rewards and transaction fees for supporting the bitcoin network with application-specific integrated circuit computers (ASICs or miners) owned or leased by the company. In addition to self-mining, Greenidge reports datacenter hosting revenue and power and capacity revenue, reflecting its role as both a power generator and a datacenter operator.

Integrated power generation and datacenter operations

Greenidge has publicly described itself as a vertically integrated cryptocurrency datacenter and power generation company. Its disclosures highlight a focus on cryptocurrency mining, infrastructure development, engineering, procurement, construction management, and operations and maintenance of sites. A core asset is its power generation facility in Dresden, New York, which the company refers to as its flagship Dresden facility.

In company communications, Greenidge notes that the Dresden facility provides significant power to the local energy grid each year and also supplies electricity to its cryptocurrency datacenter. The company reports that it can curtail cryptocurrency mining operations in minutes and direct more of its power generation to the local grid. Greenidge has also disclosed that it provides power to the Upstate New York electrical grid every minute it operates, and that it can increase power to the grid during periods of high demand.

Cryptocurrency mining and hosting activities

Greenidge’s cryptocurrency-related operations include both self-mining of bitcoin and datacenter hosting for third parties. The company has reported cryptocurrency mining revenue and datacenter hosting revenue as distinct components of total revenue. It has also disclosed the scale of its current active datacenter operations in terms of exahash per second (E/Hs) of datacenter hosting and cryptocurrency mining capacity, with a portion associated with hosting and a portion associated with its own mining activities.

The company’s disclosures indicate that its vertically integrated model allows it to operate a cryptocurrency datacenter using electricity produced at its own facility. Greenidge has stated that its Dresden operation uses electricity produced at the facility to operate the datacenter while also providing power to the local grid.

Power and capacity segment

Greenidge reports a power and capacity component of its business alongside crypto mining and datacenter hosting. In its public statements, the company has highlighted power and capacity revenue and has emphasized the role of its Dresden facility in providing power to the local energy grid. The company has also discussed its participation in arrangements with the New York Independent System Operator (NYISO), under which it provides power to the grid and can adjust output in response to grid needs.

In connection with regulatory matters, Greenidge has entered into a stipulation of settlement with the New York State Department of Environmental Conservation regarding renewal and modification of its Title V Air Permit for the Dresden facility. The stipulation sets out greenhouse gas emissions limits over a multi-year period and describes the administrative process for issuance of a final Title V Air Permit. The company has characterized the resulting agreement as providing a pathway for a new five-year permit and has stated that the facility will continue to supply electricity to the local grid while operating as a datacenter.

Asset portfolio and recent transactions

Historically, Greenidge has owned and operated facilities at multiple locations. Earlier descriptions note facilities at Torrey, New York, and Spartanburg, South Carolina. More recent company disclosures describe the Dresden, New York facility as its flagship operation and refer to additional properties related to datacenter and power capacity development.

Through its subsidiaries, Greenidge has engaged in transactions involving datacenter and power-related properties. For example, the company reported that a wholly owned subsidiary entered into and completed a transaction to sell approximately 152 acres of land in Spartanburg, South Carolina, along with rights to 60 megawatts of electrical service associated with that property. The consideration included cash at closing and the right to receive future payments tied to additional electrical capacity made available to the property by specified dates, subject to the terms of the purchase agreement.

Greenidge has also disclosed the sale of a bitcoin mining facility in Columbus, Mississippi, through a subsidiary, for cash consideration subject to customary adjustments and expenses. In addition, the company has referenced a Mississippi expansion property with access to electrical capacity under an industrial power contract, and has described this site as part of its growth pipeline.

Regulatory and operational developments

Greenidge’s public filings and press releases describe a multi-year regulatory process regarding the Dresden facility’s Title V Air Permit in New York. The company has reported a stipulation of settlement with the New York State Department of Environmental Conservation that incorporates new greenhouse gas emissions limits and related monitoring and reporting requirements. The stipulation contemplates issuance of a draft Title V permit modification and renewal, followed by public comment and review by the U.S. Environmental Protection Agency, and ultimately a final Title V Air Permit consistent with agreed emissions limits.

The company has also reported an electrical switchgear failure and resulting fire at the Dresden facility, which triggered automated safety protocols and a temporary de-energization of the facility. According to the company’s Form 8-K, the facility resumed normal operations approximately two weeks after the incident, with limited damage to certain electrical switchgear and no damage to owned or hosted bitcoin miners. The facility returned to service ahead of the company’s internal schedule and resumed delivering power to the local grid.

Capital structure and debt management

Greenidge has outstanding 8.50% Senior Notes due 2026, which the company refers to as senior unsecured debt in its public communications. The company has undertaken a series of tender and exchange offers for these notes, including cash tender options and exchange options for new 10.00% Senior Notes due 2030. Through these offers and related transactions, Greenidge has reported reductions in the principal amount of its 2026 senior indebtedness and issuance of a smaller principal amount of new 2030 notes.

In its press releases and non-GAAP disclosures, Greenidge has discussed measures such as Total Debt and Net Debt, defined in relation to the principal amount of its senior notes and its cash, cash equivalents, restricted cash, and digital assets. The company has presented these measures to illustrate the impact of asset sales and debt restructuring on its capital structure and has described the use of non-GAAP metrics as supplemental to its GAAP financial statements.

Non-GAAP financial measures

Greenidge uses several non-GAAP financial measures in its communications, including EBITDA, Adjusted EBITDA, Adjusted Free Cash Flow, Total Debt, and Net Debt. The company defines EBITDA as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA further adjusted for stock-based compensation and other items such as gains or losses from asset sales, troubled debt restructuring, insurance proceeds, and liquidation of subsidiaries, as determined by management.

Adjusted Free Cash Flow is defined by the company as net cash flow provided by (or used for) operating activities less purchases of and deposits for property and equipment, adjusted to add revenue from digital assets production and remove proceeds from the sale of digital assets already included in operating activities. Greenidge explains that, due to its bitcoin retention strategy, digital assets generated from mining are treated as an operating cash outflow in its GAAP financial statements, and that Adjusted Free Cash Flow is intended to approximate cash flow as if digital assets were liquidated at the time of receipt.

Total Debt, as described by the company, represents the aggregate outstanding principal indebtedness under its 8.50% Senior Notes due 2026 and 10.00% Senior Notes due 2030, excluding unamortized discounts, premiums, and issuance costs. Net Debt is defined as Total Debt less cash and cash equivalents (including restricted cash) and digital assets. The company notes that its definitions of these non-GAAP measures may differ from those used by other companies and that they are not intended as substitutes for GAAP measures.

Company status and listing

Greenidge Generation Holdings Inc. reports that its Class A common stock trades on the Nasdaq under the symbol GREE. The company has also noted that its 8.50% Senior Notes due 2026 have traded on the Nasdaq Global Select Market under the symbol GREEL. In connection with its exchange offers, Greenidge has indicated that the aggregate principal amount of new 10.00% Senior Notes due 2030 issued in certain transactions is below the minimum required for a Nasdaq listing, and that it seeks to list those new notes for trading on an over-the-counter market under a different ticker, while cautioning that there can be no assurance of an active trading market.

Available public information does not indicate that Greenidge has been delisted from Nasdaq or that it has completed a merger, acquisition, or bankruptcy proceeding that would fundamentally change its corporate identity. The company continues to file current reports on Form 8-K describing operational, regulatory, and financing developments.

Summary

Overall, Greenidge Generation Holdings Inc. presents itself as a vertically integrated power generation and cryptocurrency datacenter company operating within the Data Processing, Hosting, and Related Services industry. Its business combines power generation, bitcoin mining, and datacenter hosting, with a focus on managing power assets, regulatory obligations, and capital structure. Investors reviewing GREE stock often consider the company’s operational performance at its Dresden facility, its cryptocurrency mining and hosting capacity, its regulatory agreements in New York, and its ongoing efforts to restructure senior notes and manage Net Debt, as described in its public filings and press releases.