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

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Bitcoin mining company Greenidge Generation is seeking to raise approximately $22.8 million, according to a USSecurities and Exchange Commission (SEC) filing released Wednesday. According to the prospectus disclosing information, New York-based Greenidge has entered into a sales agreement with investment firms B. Riley Securities and Northland Securities.

Bitcoin Miner Greenidge Generation Seeks to Raise $22.8 Million via Equity Offering

According to a prospectus supplement SEC filing, Greenidge Generation seeks to raise $22,800,000 through the sale of Class A common stock. Greenidge has entered into a sale agreement with B. Riley Securities and Northland Securities, and B. Riley will be the underwriter and will receive approximately 5% of the gross sale price as a commission.

The company’s recent filing follows the mining company reports losses of approximately $107 million for the second quarter. In mid-August, Greenidge explained that he was suspending operations related to the company’s mining expansion in Texas.

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

In July, the company mined around 287 bitcoins (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 in the first week of March 2020, when an investment of $65 million supplied natural gas suppliers “behind the meter” BTC mining.

At the time, the installation team said they installed 7,000 miners in the factory, and the Greenidge data center in New York’s Finger Lakes region got 5.5. BTC every day. Since then, Greenidge’s bitcoin mining operations have grown significantly, but the company has come under fire from environmentalists.

In June 2022, the New York Department of Environmental Conservation (DEC) Posted a statement noting that it was denying Greenidge’s license renewal and citing the need to provide better greenhouse gas (GHG) mitigation programs.

“DEC has determined that 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. Greenidge’s recent SEC filing dated October 3, 2022 indicates that the amount of sale proceeds will depend on the number of Class A common stock sold.

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

Keywords in this story

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

Jamie Redman

Jamie Redman is the News Manager at Bitcoin.com News and a fintech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written over 6,000 articles for Bitcoin.com News about disruptive protocols emerging today.




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