Greenidge Generation intends to sell class A common stocks in order to raise $22,800,000, according to a prospectus supplement SEC filing. B. Riley Securities and Northland Securities and Greenidge entered into a sales agreement under which B. Riley will serve as the underwriter and receive a commission of about 5% of the gross sales price.
The mining company recently filed after posting second-quarter losses of almost $107 million. Greenidge stated that it was halting operations related to the company’s Texas mining development at the time in mid-August.
The firm mined about 287 bitcoins (BTC) in July and has a mining capability of about 2.7 exahashes per second (EH/s) as of July 31, 2022. During the first week of March 2020, when a $65 million investment drove the natural gas suppliers’ “behind-the-meter” BTC mining activity, Bitcoin.com News published its first article on Greenidge.
“We have chosen to pause our plans to develop certain additional sites in our pipeline in the ERCOT market and, instead, intend to concentrate our operations at our two existing sites in South Carolina and New York for the time being,”Greenidge said at the time.
The facility’s staff claimed that it had installed 7,000 miners at the plant at the time, and that the Greenidge data center in the Finger Lakes region of New York was receiving 5.5 BTC every day. Since then, Greenidge has significantly increased the size of its bitcoin mining facilities, but environmentalists have criticized the business.
In a statement released in June 2022, the New York Department of Environmental Conservation (DEC) highlighted that it had rejected Greenidge’s request to renew its permit and emphasized the need for greater greenhouse gas (GHG) mitigation plans.
The department at the time stated, “DEC concluded the permit renewal application does not demonstrate compliance with the standards of the Climate Leadership and Community Protection Act.” According to a recent Greenidge SEC filing dated October 3, 2022, the volume of class A common shares sold will determine how much money is made from the sale.
“We currently plan to use the net proceeds from this offering, after deducting B. Riley’s commissions and offering expenses payable by us, for general corporate purposes, which may include, among other things, paying or refinancing all or a portion of our indebtedness at the time, and funding acquisitions, capital expenditures, and working capital,” Greenidge’s prospectus supplement SEC filing explains.