Power Generator Greenidge Pivots to Retain Mined Bitcoin
New York-headquartered power generator and bitcoin mining firm Greenidge Generation has adopted a bitcoin retention strategy, pivoting away from its previous bitcoin liquidation policy.
Greenidge announced the plan on Thursday, stating it would accumulate bitcoin from its proprietary mining business to balance its liquidity position with additional revenue from its hosting business and electricity sales.
Previously, Greenidge adhered to a treasury strategy of liquidating almost all of its mined bitcoin. As of March 31, the company held only $301,000 worth of digital assets.
“As we continue to expand our mining operations across the country, retaining more of the bitcoin we earn from our self-mining activities is a logical evolution of our strategy and aligns with our belief in both bitcoin and Greenidge’s long-term growth prospects,” said Greenidge CEO Jordan Kovler.
The company boasts 122 megawatts of total energy capability, generating revenues from power, bitcoin mining, and hosting. During Q1, its average cost of revenue across the three business segments was about $59.8/mWh. Greenidge mined 134 BTC during the first quarter for its account and 275 BTC on behalf of NYDIG.
Additionally, Greenidge has signed a stock purchase agreement with B. Riley Principal Capital to support its expansion and the bitcoin retention strategy. Under the agreement, Greenidge has the option to sell up to $20 million of its Class A common stock to B. Riley.
