FAIRFIELD, Conn., Oct. 25,
2023 /PRNewswire/ -- Greenidge Generation Holdings
Inc. (NASDAQ: GREE) ("Greenidge"), a vertically integrated
cryptocurrency datacenter and power generation
company, today announced selected preliminary financial and
operating results for the third quarter of 2023.
For the three months ended September 30,
2023, Greenidge expects to report revenue of approximately
$21 million, net loss from continuing
operations in a range of approximately $7
million to $8 million and
Adjusted EBITDA in a range of approximately zero to approximately
$1 million. Adjusted EBITDA is a
non-GAAP measure. See the table attached to this press release for
a reconciliation from GAAP to non-GAAP measures and "Use of
Non-GAAP Information" below for more details.
Cryptocurrency datacenter hosting revenue is expected
to be approximately $12.5 million,
Cryptocurrency datacenter self-mining revenue is
expected to be approximately $6.5
million and Power and capacity revenue is expected to be
approximately $2 million for the
third quarter of 2023. Our cryptocurrency datacenter
operations produced approximately 871 bitcoin during
the third quarter of 2023, of which 636 bitcoin were
produced for colocation and 235 bitcoin were produced
for self-mining. As of September 30,
2023, Greenidge datacenter operations consisted of
approximately 42,300 miners with approximately 4.6 EH/s of combined
capacity for both datacenter hosting and
cryptocurrency mining, of which 32,100 miners, or 3.4
EH/s, is associated with datacenter hosting and 10,200 miners, or
1.2 EH/s, is associated with Greenidge's
cryptocurrency mining.
Greenidge ended the quarter with approximately $10.7 million of cash and approximately
$89.5 million of debt.
Preliminary Financial and Operating Results
The
preliminary financial and operating results set forth above for the
three months ended September 30,
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 September 30,
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
cryptocurrency datacenter and power generation
company.
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. A
reconciliation of the non-GAAP financial measures to U.S. GAAP
results is included herein.
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 ranges of net loss
to the expected ranges of EBITDA and Adjusted EBITDA for the three
months ended September 30, 2023 (in
millions, unaudited):
Amounts denoted in
millions
|
Third Quarter
2023
|
|
Low
|
High
|
Net loss from
continuing operations
|
$
(8)
|
$
(7)
|
Provision for income
taxes
|
—
|
—
|
Interest expense,
net
|
3
|
3
|
Depreciation and
amortization
|
3
|
3
|
EBITDA (loss) from
continuing operations
|
$
(2)
|
$
(1)
|
Stock-based
compensation
|
1
|
1
|
Restructuring
costs
|
1
|
1
|
Adjusted EBITDA from
continuing operations
|
$
—
|
$
1
|
For further information, please contact:
Investor Relations
investorrelations@greenidge.com
Media Inquiries
media@greenidge.com
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SOURCE Greenidge Generation Holdings Inc.