Crypto Miner Greenridge on Mission to Raise $22.8 Million
Crypto miner Greenridge Generation is on a mission to raise up to $22.8 million.
A US Securities and Exchange Commission (SEC) filing dated Oct. 3 showed the firm is seeking to do so in an initial public offering.
The US-based bitcoin mining company has signed a sales agreement with B. Riley Securities for the Class A share offering, which will give the investment bank up to 5% of the gross proceeds from the offering.
In the filing, Greenridge wrote, “we (the company) 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 refinance all or part of our debt at that time, and fund acquisitions, capital expenditures and working capital.”
In March, the bitcoin mining company had secured $100 million in funding to help expand its operations in the United States.
The total amount included $81.4 million as a loan from an affiliate of NYDIG and $26.5 million as a promissory note with a B. Riley Financial, Inc cohort.
Although Greenridge announced that mine output rose by around 18% in June, it appears to be scrambling to raise funds as it reported a loss of $107.9 million in the second quarter.
According to its June monthly operations update, Greenridge said it produced approximately 230 Bitcoins, an increase of approximately 18%, compared to the 195 Bitcoins it mined in May.
The miner revealed that it increased hash rate capacity to 2.5 exahash per second (“EH/s”) from 27,500 miners in June, up from 1.7 EH/s mining capacity from 20,400 miners last month.
Greenridge stated that they ordered an additional 200 mining machines, which are in transit, as they will be installed upon arrival.
After the company’s second-quarter losses, it announced in August that it would halt expansion plans in Texas. It cited a “sudden change in mining economics” and said it would focus on the South Carolina and New York locations.
However, the New York Department of Environmental Conservation denied the bitcoin mining company’s air permit renewal in June, as it did not meet the requirements of state climate laws.
In a statement, NYSDEC said Greenridge’s application was inconsistent with the climate goals highlighted by the state’s Climate Leadership and Community Protection Act (CLCPA), which focuses on reducing New York’s greenhouse gas emissions by at least 85% by 2050.
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