Bitcoin miner Greenidge Generation’s revenue forecasts are dropping as a result of revenue targets mixed with falling Bitcoin (BTC) and rising energy prices.
According to FactSet, Bitcoin (BTC) miner Greenidge Generation Holdings reported second-quarter revenue of $31.3 million. That fell $34 million behind analysts’ estimates. The company also reported a GAAP net loss of $107.9 million for the quarter, including $98.2 million in special items.
NASDAQ stock chart of the companyAs the chart shows, shares fell nearly 9.5 percent to $4.21 in after-hours trading on Monday, after rising nearly 12 percent on the day. Shares have lost 71 percent to date.
Greenidge produced approximately 621 Bitcoins in the second quarter of 2022 compared to 315 Bitcoins (BTC) in the second quarter of 2021 and had approximately 27,500 miners as of June 30, 2022 with a combined capacity of approximately 2.5 EH/s.
CEO Jeff Kirt said in a press release that the nearly 60 percent drop in the price of Bitcoin in the second quarter, coupled with the rise in global energy prices, presented a “challenging earnings environment.”
Jeff Kirt also added:
“The sudden change in the mining economy has caused us to reassess our strategy to cautiously prioritize liquidity and capital preservation over aggressive growth, and to maintain our relentless focus on operational performance.”
According to Kirt, Greenidge currently plans to halt development of new mining facilities, instead focusing more on its two existing sites in South Carolina and New York.
Greenidge expects to have at least 3.6 EH/s mining capacity by the first quarter of 2023 and maintain this level until “market conditions are attractive for additional growth”.
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