Greenidge Sells South Carolina Property for $12M and 8% Stake in Future Profits

Greenidge Generation has sold its 152-acre property in South Carolina as the Bitcoin mining and power plant operator seeks ways to navigate its growth challenges.

In a statement released Tuesday, Greenidge announced the sale of the property in Spartanburg to boutique data center operator Data Journey for $12.1 million in cash, along with an 8% stake in the property’s future profits after Data Journey develops the site into industrial facilities.

Data Journey specializes in colocation and network connectivity, operating four facilities across two data centers in Catawba County, North Carolina, and Houston, Texas. Greenidge has pledged to support Data Journey in developing the Spartanburg property, which has access to 60 megawatts (MW) of power, into its third data center.

Greenidge also hinted at the possibility of similar transactions for its other properties. “Greenidge is now evaluating other sites for similar data center buildouts and intends to partner with Data Journey on other similar sites,” the company stated. The sale is expected to close in the first quarter of 2025.

Greenidge originally purchased the Spartanburg property in 2021 during the cryptocurrency bull run for $15 million. The transaction included 175 acres of land and over 750,000 square feet of industrial buildings. The company developed a 44-MW Bitcoin mining operation on 23 acres of the property, which it transferred to NYDIG in 2023 as part of a deal to settle outstanding loans.

Following the transfer, Greenidge retained the remaining 152 acres for potential future expansion. However, the company has faced challenges for growth, including limited access to external financing and shrinking operating margins. Greenidge’s realized hashrate capacity has dropped from 1.06 EH/s in the third quarter of 2023 to 0.78 EH/s in the third quarter of 2024.

As of September 30, 2024, Greenidge remained one of the few publicly traded Bitcoin mining companies with more debt than assets on its balance sheet.