The company said the combination of falling bitcoin prices and high global energy prices presented a “challenging earnings environment.”
Bitcoin (BTC) miner Greenidge Generation Holdings (GREE) reported second-quarter revenue of $31.3 million, falling short of analyst estimates of $34 million, according to FactSet. The company also reported a GAAP net loss of $107.9 million in the quarter, including $98.2 million in special items.
Shares were down about 9.5% to $4.21 in after-hours trading Monday after rising almost 12% during the day. Shares are down 71% year to date.
Greenidge produced approximately 621 bitcoin during the second quarter of 2022, compared to 315 bitcoin in the second quarter of 2021, and had approximately 27,500 miners with approximately 2.5 EH/s of combined capacity as of June 30, 2022.
CEO Jeff Kirt said in a press release that the roughly 60% decline in the price of bitcoin in the second quarter, combined with the spike in global energy prices, presented a “challenging earnings environment.”
“The sudden change in mining economics has driven us to refocus our strategy to prudently prioritize liquidity and capital preservation over aggressive growth – while maintaining our relentless focus on operational performance,” Kirt said.
According to Kirt, Greenidge now plans to pause development of new mining sites and instead plans to concentrate on its two existing sites in South Carolina and New York.
Greenidge expects to have at least 3.6 EH/s of mining capacity by the first quarter of 2023, and to maintain that level until it determines that “market conditions are attractive for additional growth.”