DRESDEN, N.Y., Oct. 21, 2021 /PRNewswire/ -- Greenidge
Generation Holdings Inc. (NASDAQ: GREE) ("Greenidge") today
announced new details regarding its plans to significantly expand
beyond its current site in the State of
New York.
To achieve this expansion, Greenidge has more than doubled its
recent order with Bitmain to 22,500 units; entered into an
exclusive agreement with a developer with a development pipeline of
at least 2,000MW of capacity in Texas; entered into a separate exclusive
agreement with a company controlling over 1,000MW of power
generation assets in Texas; and
signed a definitive agreement to acquire a 175-acre site in
South Carolina.
"Our recent senior notes offering has provided us with the
liquidity to advance a number of strategic growth initiatives,"
said Greenidge's CEO Jeff Kirt.
"Increasing our order with Bitmain brings our current and committed
miner capacity to over 130MW and 4.1 EH/s delivering in the next 12
months. Additionally, the site development efforts we announced
today are consistent with our plans to expand to new locations in
North America. Operating multiple
sites in our portfolio will allow us the flexibility to reposition
assets in order to maximize operating cash flow and provide
operational redundancy, if required."
Greenidge is evaluating over 3,000MW of options in the
Texas and South Carolina markets to determine the most
attractive locations to develop. The Company expects to deploy
substantially all of the 22,500 miners ordered from Bitmain in the
last six weeks at one or more of these locations.
Upsized Bitmain Order
Greenidge has more than doubled its recently announced order
with Bitmain from 10,000 S19j Pros to 22,500. The units will
deliver in the second and third quarters of 2022. In total,
Greenidge has approximately 29,000 miners currently on order with
Bitmain delivering between now and the third quarter of 2022. Once
deployed, these miners would bring Greenidge's total mining
capacity to approximately 44,950 miners representing 4.1EH/s and
130MW of capacity.
New Site Opportunities in Texas and South
Carolina
Greenidge also announced today it has entered into exclusive
agreements regarding the potential construction of new data centers
in Texas.
Greenidge's exclusive agreement with a developer for multiple
sites in Texas (the "Texas
Development Sites") includes at least six sites in the pipeline
that Greenidge and the developer have identified as potential
locations for Greenidge data centers. In total, the Texas
Development Sites have over 2,000MW of electrical capacity and
include several locations surrounded by abundant wind and solar
power generation.
Additionally, Greenidge has entered into an agreement giving it
an exclusive right of first refusal at multiple power generation
sites comprising over 1,000MW of power generation assets in the
ERCOT market (the "Texas Generation Sites"). The agreement
gives Greenidge the exclusive right of first refusal to develop
data centers at any current or future power generation sites
controlled by the counterparty in the ERCOT market until
January 2023.
In South Carolina, Greenidge
has signed a definitive agreement with a subsidiary of LSC
Communications ("LSC") to purchase LSC's facility in Spartanburg, SC. The transaction is structured
as an outright purchase of the site from LSC rather than a lease,
as was previously contemplated and announced in July 2021. The purchase price for the 175-acre
site, including over 750,000 square feet of industrial buildings,
is $15 million. The transaction is
expected to close in early December
2021.
Together, the Texas Development Sites, the Texas Generation
Sites and the South Carolina site
have over 3,000MW of combined electrical capacity. Greenidge now
anticipates that it will have electrical capacity for over 500MW by
2023. Greenidge plans to continue to offset 100% of the carbon
emissions associated with its mining operations at all current and
future locations.
Greenidge currently operates 45MW of mining capacity at its
existing site in Dresden, NY and
expects to continue to operate the facility. The expansion plans
announced today, once developed, would provide Greenidge with the
redundancy to absorb Dresden's
current and planned mining capacity at other locations, if
necessary.
Capital Structure
Greenidge intends to finance its expansion plans with cash on
hand, including the proceeds of its recent $55.2 million senior notes offering, as well as
operating cash flow. Additional debt and/or equity financing could
contribute to further expansion or to the acceleration of the
expected timeframe of expansion.
Separately, in response to investor inquiry, the company is
providing clarification regarding certain topics pertaining to its
Common Equity:
As previously disclosed, in September, Greenidge announced it
had entered into an equity purchase agreement with B. Riley
Principal Capital, LLC and filed a Form S-1 Registration Statement
(the "Equity Purchase S-1") with the Securities and Exchange
Commission relating to the equity purchase agreement. The maximum
number of shares that Greenidge can sell pursuant to the Equity
Purchase S-1 is 3.5 million, which would increase the number of
Greenidge's outstanding shares of Class A and Class B Common Stock
from approximately 38.7 million shares as of October 1, 2021, to 42.2 million shares, an
increase of 9.0%.
Additionally, Greenidge is clarifying that its controlling
shareholder, which consists of certain funds associated with Atlas
Holdings LLC ("Atlas Funds"), has not sold any of its shares of
Greenidge Common Stock to date.
Following Greenidge's 4:1 stock split in January 2021, Atlas Funds' holdings of
Greenidge Common Stock have remained
at approximately 26.8 million shares of Class B Common Stock.
Atlas Funds' holdings of Greenidge
Common Stock are subject to Form 4 filing requirements with
the SEC. As such, any sales by Atlas Funds of Greenidge Common Stock are required to be
reported on Form 4.
As previously disclosed, LSC is a portfolio company of private
investment funds managed by Atlas Holdings LLC.
About Greenidge Generation Holdings Inc.
Greenidge Generation Holdings Inc. (NASDAQ: GREE) is a
vertically integrated bitcoin mining and power generation company.
Greenidge is committed to 100% carbon-neutral bitcoin mining at all
of its locations by utilizing low-carbon sources of energy and
offsetting its carbon footprint. Greenidge currently operates one
facility in upstate New York and
plans to expand operations to multiple locations in North America. Support.com, a Greenidge
subsidiary, is a leading provider of customer and technical support
solutions delivered by home-based employees.
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, such as statements concerning
(i) the consummation of the arrangements related to the Texas
Development Sites and the Texas Generation Sites and the definitive
agreement with LSC, (ii) the ability to continue operations at
Greenidge's Dresden, New York
facility, (iii) the delivery of miners currently on order with
Bitmain (iv) future electrical capacity, (v) the ability to offset
carbon emissions and (vi) the ability to obtain future debt or
equity financing, 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 II, Item 1A. "Risk Factors"
of Greenidge's Quarterly Reports on Form 10-Q, and its other
filings with the Securities and Exchange Commission, as well as
statements about or relating to or otherwise affected by: (i) the
ability to negotiate or execute definitive documentation with
respect to the Texas Development Sites and the Texas Generation
Sites on terms and conditions that are acceptable to Greenidge,
whether on a timely basis or at all; (ii) the ability to close on
and recognize the anticipated objectives and benefits of an
expansion into the Texas Development Sites, the Texas Generation
Sites and the LSC facility; (iii) the ability to recognize the
anticipated objectives and any benefits, including the anticipated
tax treatment, of the acquisition of Support.com; (iv) changes in
applicable laws, regulations or permits affecting Greenidge's
operations or the industries in which it operates, including
regulation regarding power generation, cryptocurrency usage and/or
cryptocurrency mining; (v) any failure to obtain adequate financing
on a timely basis and on acceptable terms with regard to growth
strategies or operations; (vi) fluctuations in the market pricing
of bitcoin and other cryptocurrencies; (vii) loss of public
confidence in, or use cases of, bitcoin and other cryptocurrencies;
(viii) the potential of cryptocurrency market manipulation; (x) the
economics of mining cryptocurrency, including as to variables or
factors affecting the cost, efficiency and profitability of mining;
(xi) the availability, delivery schedule and cost of equipment
necessary to maintain and grow the business and operations of
Greenidge, including mining equipment and equipment meeting the
technical or other specifications required to achieve Greenidge's
growth strategy, (xii) the possibility that Greenidge may be
adversely affected by other economic, business or competitive
factors, including factors affecting the industries in which it
operates or upon which it relies and is dependent; (xiii) the
ability to expand successfully to other facilities, mine other
cryptocurrencies or otherwise expand the business; (xiv) changes in
tax regulations applicable to Greenidge, its assets or
cryptocurrencies, including bitcoin; (xv) any litigation involving
Greenidge; (xvi) costs and expenses relating to cryptocurrency
transaction fees and fluctuation in cryptocurrency transaction
fees; (xvii) the condition of Greenidge's physical assets,
including that Greenidge's current single operating facility may
realize material, if not total, loss and interference as a result
of equipment malfunction or break-down, physical disaster, data
security breach, computer malfunction or sabotage; and (xix) the
actual and potential economic fallout resulting from the COVID-19
pandemic. 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.
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SOURCE Greenidge Generation Holdings Inc.
