Greenidge Generation Announces $6 Million Investment to Support Ongoing Business Transformation
Greenidge Generation Holdings Inc. (NASDAQ: GREE) ("Greenidge" or the "Company"), a vertically integrated cryptocurrency datacenter and power generation company, today announced that it has entered into a securities purchase agreement with Armistice Capital that includes an initial investment of $6 million.
The investment from Armistice Capital will provide Greenidge with long-term capital to support the Company's growth strategy and is expected to fund its expansion into low-cost power centers, bitcoin mining, its EPCM business, new AI infrastructure/data centers and innovative efforts to support an increased interest in bitcoin.
Greenidge CEO Jordan Kovler commented: "The investment by Armistice sends a clear message regarding Greenidge's ongoing transformation and expansion efforts. This comes at an exciting time for us, as we continue to implement our growth plan, build upon our organization's culture and cement our competitive advantages to garner further interest with institutional investors. The capital from Armistice will provide us more opportunities to execute on our initiatives and maximize value for all Greenidge shareholders."
Under the terms of the agreement, Armistice Capital is initially investing $6 million to purchase a combination of 1,260,505 shares and pre-funded warrants priced at $4.76 per share. Armistice is also receiving warrants to purchase an additional 1,260,505 shares for an aggregate price of $6.62 million or $5.25 per share.
Greenidge recently reported its first profitable quarter in two years as its business transformation continues and announcd favorable preliminary financial and operating results for the fourth quarter 2023. This included Net Income of $1.4 million to $2.4 million, Adjusted EBITDA of $1.6 million to $2.6 million and Earnings Per Share of $0.18 to $0.32. In 2023, Greenidge reduced its debt by $85.3 million in aggregate, representing over 54% of its total debt.
About Greenidge Generation Holdings Inc.