Greenidge Generation Holdings Inc. (GREE)·Q4 2024 Earnings Summary

Executive Summary

• Q4 2024 preliminary revenue was $14.8M, up $2.4M vs Q3 ($12.4M), with positive Adjusted EBITDA of $2.6–$3.6M versus a $(0.1)M loss in Q3; net loss narrowed to $3.3–$4.3M from $6.3M in Q3 .
• Mix improved sequentially across all segments: self-mining revenue +$0.7M to $4.0M, hosting +$0.8M to $7.3M, and power/capacity +$0.9M to $3.5M .
• Strategic actions in the quarter included agreeing to sell the Spartanburg, SC property for $12.1M with an 8% profit participation and reinforcing a pivot toward data center and HPC opportunities; the NY Supreme Court also ruled in favor of Greenidge on its Title V Air Permit renewal, enabling continued NY operations .
• Management outlined 2025 capacity initiatives (targeting ~146.5MW by YE 2025) and balance sheet strengthening via potential note-to-equity conversions at a discount to par, a key forward catalyst alongside potential >200MW low-cost power asset acquisition under evaluation .

What Went Well and What Went Wrong

What Went Well

• Sequential financial improvement: Q4 revenue rose $2.4M QoQ to $14.8M; Adjusted EBITDA swung positive to $2.6–$3.6M from $(0.1)M in Q3, reflecting better operating mix and SG&A discipline .
• Segment strength: hosting (+$0.8M QoQ to $7.3M) and power/capacity (+$0.9M QoQ to $3.5M) drove the top-line gain, indicating diversified revenue traction beyond self-mining (+$0.7M QoQ to $4.0M) .
• Strategic positioning and tone: “Throughout 2024, we took significant steps to further right-size the business…reducing SG&A expenses by almost $9 million” and plan to “identify and monetize value-accretive properties” including >200MW assets, backed by a proposal to convert notes to equity to enable growth .

What Went Wrong

• Still loss-making: Q4 net loss remained $3.3–$4.3M despite improvements, and EBITDA (GAAP) was only $0.9–$1.9M, underscoring ongoing profitability headwinds and depreciation/interest burden .
• Liquidity tightened: cash ended Q4 at $8.6M (vs $11.4M cash and digital assets at Q3 end), with debt still elevated at ~$68.5M (down modestly from ~$69.5M) .
• Prior disruptions: Q2 earnings were pressured by miner relocations and a planned plant outage, indicating operational transitions can create near-term volatility and downtime risk .

Financial Results

Segment breakdown:

KPIs:

Notes: EPS was not disclosed in the Q2/Q3/Q4 earnings releases, and margins (gross/EBITDA %) were not provided in these materials .

Guidance Changes

Earnings Call Themes & Trends

(Company did not file an earnings call transcript for Q4 2024; themes synthesized from company releases.)

Management Commentary

• “Throughout 2024, we took significant steps to further right-size the business and stabilize our operations, reducing SG&A expenses by almost $9 million. We also implemented important new growth strategies, including the acquisition and successful buildouts of sites in Mississippi and North Dakota…” .
• “In 2025, we will continue to execute on our long-term growth plan…Among the strategic opportunities we are actively exploring is the potential acquisition of a property with over 200MW of low-cost power assets…we believe that the best opportunity…will require the conversion of a substantial amount of our outstanding notes into equity at a meaningful discount to par value.” .
• On data center strategy: “Today marks an exciting step forward…our South Carolina property sale to Data Journey represents our first large-scale entrance into the data center space…we look forward to supporting them… and partnering together on many other projects in the future.” .
• On NY operations: Company statement emphasized that the court ruling ensures continued NY facility operations and criticized DEC’s process as “arbitrary and capricious” .

Q&A Highlights

• No Q4 2024 earnings call transcript was available; therefore, Q&A themes and guidance clarifications could not be evaluated from a call transcript.

Estimates Context

• Wall Street consensus (S&P Global) for Q4 2024 was not retrievable at the time of analysis; as a result, we cannot provide formal comparisons vs consensus for revenue/EPS/EBITDA. Where estimates become available, we expect upward revisions to EBITDA and segment revenues given the sequential improvement reported by the company .

Key Takeaways for Investors

• Sequential improvement and mix shift: Q4 revenue (+$2.4M QoQ to $14.8M) with positive Adjusted EBITDA ($2.6–$3.6M) marks operational traction across hosting and power segments, reducing dependence on self-mining .
• Strategic pivot to data centers/HPC: SC property monetization ($12.1M; 8% profit share) and partnership framework with Data Journey signal a scalable, capital-light path to value creation adjacent to mining .
• Regulatory overhang eased: Favorable NY Supreme Court ruling preserves operations and diminishes permit risk—potentially supportive for investor confidence and site-level cash flows .
• Capacity roadmap and efficiency: Plans to reach ~146.5MW by YE 2025 and demonstrated miner efficiency progress (23.8 J/TH achieved in early Q1’25) underpin margin potential if BTC prices and network dynamics cooperate .
• Balance sheet actions ahead: Management’s willingness to convert notes to equity at a discount to par could de-lever and enable >200MW asset acquisition, but equity dilution risk must be weighed against growth optionality .
• Liquidity vigilance: Q4 cash of $8.6M and debt of $68.5M highlight the importance of timely asset monetizations and financing execution to sustain the roadmap .
• Near-term trading: Watch for follow-through on tender/asset sales, debt exchanges, and any formal guidance; positive headlines on acquisitions or financing could be catalysts, while delays or equity-heavy solutions may pressure shares .