Greenidge Generation Reports $19.2 Million Revenue in Q1 2025, Faces Increased Losses

Greenidge Generation Holdings Inc. reported a total revenue of $19.2 million for the first quarter of 2025, a slight decrease of 0.5% compared to $19.3 million in the same period last year. The company's revenue streams included $5.8 million from datacenter hosting, $4.2 million from cryptocurrency mining, and $9.2 million from power and capacity sales. Notably, power and capacity revenue saw a significant increase of 203% year-over-year, driven by higher demand and prices, while both datacenter hosting and cryptocurrency mining revenues declined by 36% and 40%, respectively, due to increased mining difficulty and the impact of the bitcoin halving in April 2024.

The company's operating costs rose to $21.6 million, up 3% from $21.1 million in the prior year, primarily due to increased costs associated with natural gas and emissions. This resulted in an operating loss of $2.4 million for the quarter, compared to a loss of $1.7 million in the same quarter of 2024. The net loss for the period was $5.6 million, reflecting a 41% increase from the $3.9 million loss reported a year earlier. The increase in net loss was attributed to higher interest expenses and losses on digital assets, which were partially offset by a gain on insurance proceeds related to damaged miners.

In terms of operational metrics, Greenidge's datacenter operations included approximately 30,100 miners with a combined capacity of 3.3 EH/s. The company reported a total bitcoin production of 112 bitcoins during the quarter, a decrease of 73% compared to the previous year, largely due to increased mining difficulty and reduced mining rewards. The average bitcoin price increased by 76% year-over-year, which provided some offset to the decline in production.

Strategically, Greenidge has been active in restructuring its operations and financial obligations. The company has engaged in several privately negotiated exchange agreements, issuing shares of its Class A common stock in exchange for a portion of its outstanding Senior Notes. As of March 31, 2025, Greenidge had $66.7 million in Senior Notes outstanding, and management is exploring options to address long-term debt obligations, including potential equity exchanges and cash purchases. The company also anticipates closing a sale of its South Carolina land, which is expected to generate $12.1 million in cash, further aiding its liquidity position.

Looking ahead, Greenidge's management remains cautiously optimistic about its ability to navigate the current market conditions and improve liquidity. The company believes that its existing cash, digital assets, and anticipated proceeds from asset sales will be sufficient to meet operational needs over the next 12 months. However, the ongoing challenges in the bitcoin mining sector, including fluctuating prices and regulatory hurdles, continue to pose risks to its financial stability and operational performance.