Greenidge Generation Holdings (GREE) Q4 2024 earnings summary

Executive summary

• Operates vertically integrated cryptocurrency datacenters and power generation, with main facilities in New York and recent expansion in Mississippi and North Dakota.

• 2024 saw the sale of the South Carolina facility, deleveraging the balance sheet and generating $28M in consideration, including debt extinguishment and cash.

• Revenue streams include datacenter hosting, cryptocurrency self-mining, and power/capacity sales, with a new focus on bitcoin self-mining retention.

• Significant capital raises in 2024 via equity and warrant issuances, and ongoing efforts to improve liquidity and address long-term debt.

Financial highlights

• Total revenue for 2024 was $59.5M, down 15% year-over-year; net loss from continuing operations improved to $19.8M from $29.0M in 2023.

• Adjusted EBITDA from continuing operations was $5.5M, up from $0.2M in 2023.

• Cryptocurrency mining revenue fell 21% to $19.1M; datacenter hosting revenue dropped 24% to $29.8M; power and capacity revenue rose 59% to $10.6M.

• Cost of revenue (excluding depreciation) decreased 19% to $41.1M, mainly due to the South Carolina facility sale and contract cancellations.

• Average cost to mine one bitcoin rose to $39,094, with the value per bitcoin mined at $61,686.

• Cash and cash equivalents at year-end were $8.6M, with digital assets valued at $7.0M.

Outlook and guidance

• Management expects proceeds from the pending South Carolina land sale in 2025 to further improve liquidity.

• Current cash and digital assets, plus operational cash flow, are expected to fund operations for the next 12 months, but long-term debt obligations remain a concern.

• Growth strategy focuses on acquiring low-cost power properties, developing AI/HPC data centers, and expanding bitcoin mining and hosting.