Bitcoin Miner Greenidge Seeks to Raise $22.8 Million in Class A Common Stock Proposal

The bitcoin mining operation Greenidge Generation is seeking to raise roughly $22.8 million, according to a U.S.Securities and Exchange Commission (SEC) filing published Wednesday. According to the prospectus disclosing information, the New York-based Greenidge conducted a sales agreement with the investment firms B. Riley Securities and Northland Securities.

According to a prospectus supplement SEC filing, Greenidge Generation is looking to raise $22,800,000 from a sale of class A common stocks. Greenidge entered a sales agreement with B. Riley Securities and Northland Securities, and B. Riley will be the underwriter and gets roughly 5% of the gross sales price as a commission.

The company’s recent filing follows the mining firm reporting losses of around $107 million for the second quarter. At the time in mid-August, Greenidge explained that it was pausing operations tethered to the firm’s Texas mining expansion.

“We have chosen to pause our plans to develop certain additional sites in our pipeline in the ERCOT market and, instead, intend to concentrate our operations at our two existing sites in South Carolina and New York for the time being,” Greenidge said at the time.

In July, the company mined approximately 287 bitcoin (BTC), and had around 2.7 exahash per second (EH/s) of mining capacity as of July 31, 2022. Bitcoin.com News first reported on Greenidge during the first week of March 2020, when a $65 million investment fueled the natural gas providers’ “behind-the-meter” BTC mining operation.

At the time, the facility’s crew said it installed 7,000 miners at the plant, and the Greenidge data center in New York’s Finger Lakes region was obtaining 5.5 BTC every day. Since then, Greenidge’s bitcoin mining operations expanded quite a bit, but the company has received criticism from environmentalists.

In June 2022, the New York Department of Environmental Conservation (DEC) issued a statement that noted it denied Greenidge’s permit renewal and cited the need to provide better greenhouse gas (GHG) mitigation schemes.

“DEC determined the permit renewal application does not demonstrate compliance with the requirements of the Climate Leadership and Community Protection Act,” the department noted at the time. The recent Greenidge SEC filing dated October 3, 2022, notes the amount of proceeds acquired from the sale will depend on the number of class A common stock sold.

“We currently plan to use the net proceeds from this offering, after deducting B. Riley’s commissions and offering expenses payable by us, for general corporate purposes, which may include, among other things, paying or refinancing all or a portion of our indebtedness at the time, and funding acquisitions, capital expenditures, and working capital,” Greenidge’s prospectus supplement SEC filing explains.

What do you think about Greenidge Generation’s recent SEC filing and the plans to raise up to $22.8 million? Let us know what you think about this subject in the comments section below.