Greenidge Generation Holdings Inc.

Total revenue rose over 90% versus Q2 2021. Cryptocurrency mining revenue increased 43% year over year, aided by 621 bitcoins mined in the quarter, which was almost 100% more than the prior-year quarter. Quarter-average hashrate increased almost 200% year over year, while average difficulty was up over 30% and average bitcoin price was approximately 30% lower. Adjusted EBITDA was $2.9 million, down from $8.1 million a year ago, and adjusted EBITDA margin fell to 9.2% from 49.9%. At June 30, the company had approximately $67 million of cash and fair value of bitcoin, $92 million of cash on deposit with Bitmain, and approximately $176 million of debt; net debt was $109 million after cash and bitcoin. Management expects at least 3.6 exahash of installed mining capacity by Q1 2023, less than $7.5 million of remaining infrastructure costs, and minimal additional cash contributions for the rest of the Bitmain order book.

Jeff Kirt said the company is prioritizing liquidity and capital efficiency because mining economics have changed materially due to volatility in bitcoin and energy markets. He emphasized that Greenidge is concentrating on existing infrastructure in Dresden and Spartanburg, where returns on invested capital are better than developing new sites, and said the plan is fully funded. His tone was defensive but constructive: protect liquidity now, finish the current buildout, and keep optionality for a rebound in bitcoin prices.

Bob Loughran highlighted the year-over-year revenue growth, the 621 bitcoins mined, and the expansion in quarter-average hashrate, but noted that lower bitcoin prices and higher energy costs pressured profitability. He detailed adjusted EBITDA of $2.9 million and a 9.2% margin, plus three large GAAP charges: a $71.5 million noncash impairment, an $11.1 million CCR liability adjustment, and a $15 million tax valuation allowance. On liquidity, he cited approximately $67 million of cash and fair value of bitcoin, $92 million on deposit with Bitmain, approximately $176 million of debt, and the amended B. Riley note extended to June 2023 with a current principal balance of $16.4 million and a 7.5% rate.

There was no live analyst Q&A in the transcript, but management addressed the main investor concerns proactively: economics, liquidity, and the New York permit process. Jeff explained that the company is curtailing certain miners when selling power is more attractive than mining, and Terry Burke said the DEC permit denial is now being contested through a hearing process that he expects could take a few years at minimum. Management also said lenders provided strong support by flattening amortization, which should add liquidity as the buildout is completed.