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DRESDEN, N.Y. - Greenidge Generation Holdings Inc. (NASDAQ:GREE), a vertically integrated cryptocurrency datacenter and power generation company, has reported a significant reduction in SG&A (Selling, General and Administrative) expenses and a robust increase in bitcoin production for the third quarter of 2024.
The company achieved a reduction in SG&A expenses of approximately $9.1 million year-to-date compared to the same period in 2023, surpassing its annual reduction goal by over $2 million by the end of the third quarter. This cost-saving measure is part of Greenidge's ongoing SG&A reduction program.
In the cryptocurrency mining sector, Greenidge's operations yielded approximately 167 bitcoin in the third quarter. The breakdown of bitcoin production includes 54 mined through proprietary operations and 113 for datacenter hosting clients. This production level demonstrates a consistent mining output with approximately 54 bitcoin in September, 55 in August, and 58 in July.
The company's mining fleet consists of approximately 29,000 bitcoin miners, with an estimated total hash rate capacity of 3.1 EH/s. As of September 30, 2024, Greenidge operates 18,000 miners with a 1.8 EH/s hash rate for datacenter hosting and 11,000 miners with a 1.3 EH/s hash rate for its own cryptocurrency mining.
Financially, Greenidge reported a net loss from continuing operations of $6.6 million, with an adjusted EBITDA loss of $0.4 million. The company ended the quarter with approximately $11.3 million in cash and digital assets, including 60 bitcoin, and around $69.5 million in debt.
Looking ahead, Greenidge plans to continue upgrading its miner fleet with newer generation miners, secure additional sites for development, and potentially monetize certain assets. The company's miner fleet efficiency is expected to improve following the deployment of over 1,000 miners purchased in 2024.
Greenidge also noted an upcoming hearing in late October at the New York State Supreme Court, Yates County, concerning its request for a temporary restraining order and preliminary injunction to allow its Dresden, NY facility to continue operations during its legal challenge of the New York Department of Environmental Conservation's denial of its Title V Air Permit renewal application.
The preliminary financial results for the third quarter of 2024 are based on current expectations and are subject to change following the completion of customary quarterly financial review and audit procedures. These results are unaudited and are forward-looking statements that involve uncertainties.
This article is based on a press release statement from Greenidge Generation Holdings Inc.
In other recent news, Greenidge Generation Holdings Inc. has disclosed significant developments. The company reported bitcoin production figures for August 2024, with a total of 55 bitcoins produced. The company's hash rate for August stood at 2.50 exahashes per second. It was also revealed that Greenidge held a reserve of 51 bitcoins as of early September 2024.
Greenidge is currently engaged in a legal dispute with the New York State Department of Environmental Conservation over a denied air permit renewal for its Dresden, NY facility. The company has taken legal action seeking to overturn the decision and maintain its operations during the proceedings.
In terms of innovation, Greenidge launched the Greenidge Pod X, a new crypto mining solution, and has begun operations at a new bitcoin mining site in Mississippi, deploying 2,400 bitcoin miners from its existing fleet. The company's 2024 Annual Meeting of Stockholders saw the election of ten directors and the ratification of MaloneBailey, LLP as the independent accounting firm for the fiscal year ending December 31, 2024. However, the company has postponed its fourth quarter and full-year earnings report for 2023 to April 2024, citing necessary revisions in accounting policies and additional time required to finalize annual audit procedures. These are recent developments at Greenidge.
InvestingPro Insights
Greenidge Generation Holdings Inc. (NASDAQ:GREE) has shown mixed financial performance in recent times, as reflected in both its operational results and market metrics. According to InvestingPro data, the company's revenue for the last twelve months as of Q2 2024 stood at $72.91 million, with a revenue growth of 7.59% over the same period. This growth, however, contrasts with the quarterly revenue decline of 11.24% in Q2 2024.
InvestingPro Tips highlight that Greenidge is "quickly burning through cash" and "operates with a significant debt burden." These observations align with the company's reported financial position, including the $69.5 million in debt mentioned in the article. The tip suggesting that "analysts do not anticipate the company will be profitable this year" is consistent with the reported net loss from continuing operations of $6.6 million in the third quarter.
The company's stock performance has been volatile, with InvestingPro data showing a significant 12.7% return over the last week and month, but a substantial decline of 27.8% over the past three months. This volatility is reflected in the InvestingPro Tip noting that "stock price movements are quite volatile."
For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for Greenidge Generation Holdings, providing a deeper understanding of the company's financial health and market position.
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