Select Results Include Q4 Net Income of $1.4
million to $2.4 million, Adjusted EBITDA of $1.6 million to
$2.6 million, and Earnings Per Share of $0.18 to
$0.32
Company Reports First Profitable Quarter in
Two Years As Ongoing Transformation of Business
Continues
Complete Fourth Quarter and Full-Year 2023
Financial Results to be Announced on March 27, 2024
Greenidge Generation Holdings Inc. (NASDAQ: GREE) (“Greenidge”),
a vertically integrated cryptocurrency datacenter and power
generation company, today announced favorable preliminary financial
and operating results for the fourth quarter of 2023.
Preliminary Fourth Quarter 2023 Financial
Results1:
- Revenue of approximately $19.7 million;
- Net income from continuing operations of approximately $1.4
million to $2.4 million;
- Adjusted EBITDA of approximately $1.6 to approximately $2.6
million;
- Earnings per share of $0.18 to $0.322;
- Cryptocurrency datacenter self-mining revenue of $7.3
million;
- Cryptocurrency datacenter hosting revenue of $10.7 million;
and
- Power and capacity revenue of $1.7 million;
Fourth Quarter 2023
Highlights:
Our cryptocurrency datacenter operations produced approximately
710 bitcoin during the fourth quarter of 2023, of which 506 bitcoin
were produced for colocation and 203 bitcoin were produced for
self-mining. The average closing price of Bitcoin during the fourth
quarter of 2023 was $36,276.79.
As of December 31, 2023, Greenidge datacenter operations
consisted of approximately 29,700 miners with approximately 3.1
EH/s of combined capacity for both datacenter hosting and
cryptocurrency mining, of which 19,000 miners, or 1.9 EH/s, is
associated with datacenter hosting and 10,700 miners, or 1.2 EH/s,
is associated with Greenidge's cryptocurrency mining.
Greenidge ended the quarter with approximately $13.6 million of
cash and approximately $68.7 million of debt. In aggregate,
Greenidge reduced its debt by $85.3 million in 2023, representing
over 54% of its total debt.
Greenidge CEO Jordan Kovler commented: “We had a strong year on
many fronts, including significantly reducing our debt load and
making the necessary changes to alter the trajectory of the
business, culminating in our first profitable quarter in two years.
We continue to work diligently on paths to increasing profitable
revenue and reducing debt. While there is more to come, I want to
thank our team for the hard work that led to us delivering at least
$0.18 in earnings per share and $1.4 million in net income in the
fourth quarter, with a lower average Bitcoin price than we see
today. We remain relentlessly focused on expanding our reach into
low-cost power centers, our growing EPCM business, AI
infrastructure/data centers and innovative approaches to embrace
increased interest in bitcoin. I am confident that Greenidge’s
approach and resources differentiate us from our competitors and
positions us well for future growth.”
The preliminary financial information presented in this press
release is based on Greenidge’s current expectations and may be
adjusted as a result of, among other things, completion of
customary annual audit procedures. Management plans to discuss
Greenidge’s complete fourth quarter and full-year 2023 financial
results after the market closes on March 27, 2024.
Preliminary Financial and Operating Results
The preliminary financial and operating results set forth above
for the three months ended December 31, 2023, 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 results
which are unaudited and 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. These estimates
should not be viewed as a substitute for Greenidge's full quarterly
financial statements for the three months ended December 31, 2023,
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 power generation company, focusing on
cryptocurrency mining, infrastructure development, engineering,
procurement, construction management, operations and maintenance of
sites.
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 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, 2022 and Quarterly Reports on Form 10-Q for the
periods ended March 31, 2023 and June 30, 2023, 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.
Use of Non-GAAP Information
To provide investors and others with additional information
regarding Greenidge’s financial results, Greenidge has disclosed in
this press release the non-GAAP operating performance measures of
Adjusted EBITDA. 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, business
expansion costs, impairments of long-lived assets, gains or losses
from the sales of long-lived assets, remeasurement of environmental
liabilities, restructuring and loss on extinguishment of debt.
These non-GAAP financial measures are a supplement to and not a
substitute for or superior to, Greenidge’s results presented in
accordance with U.S. GAAP. The non-GAAP financial measures
presented by Greenidge may be different from non-GAAP financial
measures presented by other companies. Specifically, Greenidge
believes the non-GAAP information provides useful measures to
investors regarding Greenidge’s financial performance by excluding
certain costs and expenses that Greenidge 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.
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.
__________________________ 1 For the three months ended December
31, 2023; Greenidge expected, approximate financial results. 2
Based on 7,605,782 weighted average Class A and Class B shares
outstanding for the three months ended December 31, 2023. 9,175,329
combined Class A and Class B shares outstanding as of January 29,
2024.
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