Greenidge Miner Q4 Revenue Meets Estimate; Emphasized Hashrate Guidance
Greenidge Mine, a Bitcoin mining company, released its Q4 performance report earlier this week. The company’s revenue of $15.3 million was in line with the estimate given in the pre-release note sent to shareholders in January.
The company emphasized its hashrate guidance for 2019, which is expected to be between 120 and 150 Ph/s.
This would represent an increase of 50% to 100% over the current hashrate.
Greenidge Mine is expecting to achieve this growth through a combination of new hardware acquisitions and additional leased hashing power.
With the mining industry facing increasing regulatory uncertainty, Greenidge Mine is focusing on diversifying its customer base and geographical reach.
Greenidge Communications reported EBITDA of $19.1 million, up from $1.2 million last year and matching analyst expectations, according to its latest earnings report.
Revenue for the quarter was $38.6 million, up from $8.9 million a year ago. The increase was attributed to both the increase in the average bitcoin price and an increase in the number of mined bitcoins.
Greenidge Mine is expecting Q4 2018 revenue to be between $40 million and $50 million, which would represent an increase of 5% to 35% over Q4 2017. The company also expects its adjusted EBITDA to be between $22 million and $27 million, which would be an increase of 100% to 137%.
This growth is mainly due to the increase in Greenidge’s hashrate, as explained earlier.
The company’s total hashrate is expected to be between 9,000 and 12,000 petahash by the end of the year.
“We are pleased with our fourth quarter results and the progress we are making towards our goal of becoming a leading bitcoin miner,” said CEO David Martin.
“Our focus on operational efficiency has resulted in a significant increase in Adjusted EBITDA and we continue to invest in our infrastructure to support long-term growth.”
Greenidge Mine is one of the largest bitcoin miners in the world, with a total hashrate of approximately 9,000 petahash.
The company’s recent growth has been due to its focus on operational efficiency and its investment in infrastructure.
As of Dec. 31, Greenidge had approximately 17,300 miners with an aggregate hash rate capacity of about 1.4 exahash per second (EH/s), and in the earnings release reiterated hashrate guidance of 4.7 EH/s by the end of 2022.
The company mined 609 bitcoin in Q4, a 167% rise from 228 in the same quarter in a year earlier. For all 2021, Greenidge mined 1,866 bitcoin versus 1,146 in 2020.
Revenue came in at $10.9 million, meeting the analyst estimate of $10.8 million, according to FactSet. Gross margin was 64%, down from 66% a year earlier, as the cost of sales rose faster than revenue. Operating expenses rose to $5.5 million from $4 million.
Net income was $2.4 million, or 2 cents a share, compared with a loss of $300,000, or breakeven on a per-share basis, in the year-earlier period.
“Greenidge has continued to operate in New York without interruption throughout this period, and it remains committed to working constructively with the Department to complete a permit renewal,” the firm said.
“Renewal applicants are commonly in operation for lengthy periods of time, sometimes years, before finalizing a permit renewal, and further extensions may be required,” the miner added.
On Thursday evening, shares of Greenidge tumbled by almost 50% year to date, and 2.2% in after-hours trade.
With the way the crypto industry is expanding and the various legislations in its favour, it is obvious that Greenidge as Bitcoin mining outfit will remain in business for a long time to come.