Bitcoin Miner Greenidge Generation Shares Fall as Revenues Miss Estimates

The company said the combination of falling bitcoin prices and high global energy prices presented a “challenging earnings environment.”Read MoreCoinDesk

Bitcoin miner Greenidge Generation Holdings (GREE) reported second-quarter revenue of $31.3 million, falling short of analyst estimates of $34 million, according to FactSet. The company also reported a GAAP net loss of $107.9 million in the quarter, including $98.2 million in special items.

Shares were down about 9.5% to $4.21 in after-hours trading Monday after rising almost 12% during the day. Shares are down 71% year to date.

Greenidge produced approximately 621 bitcoin during the second quarter of 2022, compared to 315 bitcoin in the second quarter of 2021, and had approximately 27,500 miners with approximately 2.5 EH/s of combined capacity as of June 30, 2022.

CEO Jeff Kirt said in a press release that the roughly 60% decline in the price of bitcoin in the second quarter, combined with the spike in global energy prices, presented a “challenging earnings environment.”

“The sudden change in mining economics has driven us to refocus our strategy to prudently prioritize liquidity and capital preservation over aggressive growth – while maintaining our relentless focus on operational performance,” Kirt said.

According to Kirt, Greenidge now plans to pause development of new mining sites and instead plans to concentrate on its two existing sites in South Carolina and New York.

Greenidge expects to have at least 3.6 EH/s of mining capacity by the first quarter of 2023, and to maintain that level until it determines that “market conditions are attractive for additional growth.”


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Leave a Reply

Your email address will not be published. Required fields are marked *