The investment is expected to support Greenidge’s expansion into new low-cost power centers, enhance its bitcoin mining capabilities, further develop its engineering, procurement, and construction management (EPCM) business, as well as fund new AI infrastructure/data centers.
Greenidge CEO Jordan Kovler stated that the capital infusion from Armistice Capital underscores the company’s ongoing transformation and growth efforts.
According to the agreement, Armistice Capital will initially invest $6 million in exchange for 1,260,505 shares and pre-funded warrants, with each share priced at $4.76. Additionally, Armistice will receive warrants to purchase an extra 1,260,505 shares at an aggregate price of $6.62 million, or $5.25 per share.
The investment follows Greenidge’s recent announcement of its first profitable quarter in two years. The company reported preliminary financial and operating results for the fourth quarter of 2023, with Net Income ranging from $1.4 million to $2.4 million, Adjusted EBITDA between $1.6 million and $2.6 million, and Earnings Per Share from $0.18 to $0.32. In 2023, Greenidge also reduced its debt by $85.3 million, which represented over 54% of its total debt.
Greenidge Generation Holdings Inc. focuses on vertically integrated power generation, specializing in cryptocurrency mining and related infrastructure development.
The details provided are based on a press release statement from Greenidge Generation Holdings Inc.
As Greenidge Generation Holdings Inc. (NASDAQ:GREE) secures a $6 million investment from Armistice Capital to enhance its growth strategy, it’s important to consider the company’s financial health and market performance. According to InvestingPro data, Greenidge has a market capitalization of approximately $37.98 million. Despite a significant return over the last week of 43.81%, the company’s stock price has experienced substantial volatility, which is reflected in a high price volatility score from InvestingPro.
InvestingPro Tips highlight the company’s challenges, such as its significant debt burden and a cash burn that is quickly depleting its reserves. Additionally, the company’s short-term obligations exceed its liquid assets, which may pose liquidity risks. Analysts on InvestingPro predict that the company will be profitable this year, which could be a pivotal point for Greenidge as it aims to leverage the fresh capital for expansion.
Investors interested in a deeper dive into Greenidge’s financials and potential can access more InvestingPro Tips by visiting https://www.investing.com/pro/GREE. There are 12 additional tips available, offering insights that could help in making informed investment decisions. For those looking to subscribe to InvestingPro for year-round insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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Source: Cryptocurrency - investing.com
