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Bitcoin miner Greenidge Generation is seeking to raise approximately $22.8 million, according to a US Securities and Exchange Commission (SEC) filing published on Wednesday. According to the prospectus disclosing information, New York-based Greenidge executed a sale agreement with investment firms B. Riley Securities and Northland Securities.
According to an SEC prospectus supplement, Greenidge Generation wants to raise $22,800,000 from a sale of Class A shares. Greenidge entered into a sales agreement with B. Riley Securities and Northland Securities, and B. Riley will be the underwriter and will receive approximately 5% of the gross sales price as a commission.
The company’s recent filing follows the mining company reporting a loss of around $107 million for the second quarter. At the time in mid-August, Greenidge explained that it was halting operations related to the firm’s mining expansion in Texas.
“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 on our two existing facilities in South Carolina and New York for the time being,” Greenidge said at time.
In July, the company mined approximately 287 bitcoin (BTC), and had around 2.7 exahash per second (EH/s) mining capacity as of July 31, 2022. Bitcoin.com News first reported on Greenidge during the first week of March 2020, when a $65 million investment fueled natural gas providers’ “behind-the-meter” BTC mining.
At the time, the facility’s crew said it installed 7,000 miners at the facility, and the Greenidge data center in New York’s Finger Lakes region received 5.5 BTC each day. Since then, Greenidge’s bitcoin mining operations have expanded quite a bit, but the company has drawn criticism from environmentalists.
In June 2022, the New York Department of Environmental Conservation (DEC) issued a statement noting that it denied Greenidge’s permit renewal citing the need to provide better arrangements for greenhouse gas (GHG) reductions.
“DEC determined that the permit renewal application does not demonstrate compliance with the requirements of the Climate Leadership and Community Protection Act,” the department noted at the time. The recent Greenidge SEC filing dated October 3, 2022 notes that the amount of proceeds realized from the sale will depend on the number of Class A shares sold.
“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, the payment or refinancing of all or a portion of our indebtedness at the time , and financing acquisitions, capital expenditures and working capital,” explains Greenidge’s prospectus supplement SEC filing.
What do you think of Greenidge Generation’s latest SEC filing and plans to raise up to $22.8 million? Let us know what you think about this topic in the comments section below.
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