Bitcoin mining business Greenidge Generation is seeking to raise about $22.8 million, according to an SEC filing released Wednesday. The company is seeking to raise about $22.8 million. According to the disclosure prospectus, New York-based Greenidge has executed a distribution agreement with investment firms B. Riley Securities and Northland Securities.
Bitcoin miner Greenidge Generation is looking to raise $22.8 million in an initial public offering
According to a prospectus supplementSEC filing, Greenidge Generation is seeking to raise $22,800,000 from the sale of its Class A common stock.Greenidge has entered into sales agreements with B. Riley Securities and Northland Securities in a sales agreement whereby B. Riley will act as the underwriter and receive a commission of approximately 5% of the gross proceeds of the sale.
The company’s latest filing comes after the mining companyreported a loss of about $107 millionin the second quarter; as of mid-August, Greenidge explained that it was suspending operations tied to the company’s Texas mine expansion.
“We have elected to suspend plans to develop certain additional pipeline sites in the ERCOT market and will instead focus our operations on two existing sites in South Carolina and New York for the time being,” Greenidge said at the time.
In July, the company mined about 287 bitcoins (BTC) and had a mining capacity of about 2.7 exahashes per second (EH/s) as of July 31, 2022.Bitcoin.com News, in the first week of March 2020 first reported on Greenidge, reporting that the $65 million investment fueled natural gas provider “Behind the Meter”BTCmining operations.
At the time, the facility’s crew said it had 7,000 miners installed at the plant and the Greenidge data center in New York’s Finger Lakes region was getting 5.5 BTCdaily. Since then, Greenidge’s bitcoin mining operations have expanded considerably, but the company has faced criticism from environmentalists.
In June 2022, the New York Department of Environmental Conservation (DEC)issued astatement noting that it had refused to renew Greenidge’s permit and citing the need to provide a better greenhouse gas (GHG) mitigation scheme.
The DEC noted at the time that it “determined that the permit renewal application did not meet the requirements of the Climate Leadership and Community Protection Act. “A recent Greenidge SEC filing dated October 3, 2022, states that the amount of proceeds to be obtained from the sale of Class A common stock depends on the number of shares of Class A common stock sold,” it noted.
“We currently plan to use the net proceeds from this offering, after deducting B. Riley’s fees and the offering expenses we will pay, for general corporate purposes, including, among other things, the payment or refinancing of all or a portion of our then outstanding debt, and for acquisitions, capital expenditures, working capital . to be used for general corporate purposes.” Greenidge’s Prospectus Supplement SEC Filing explains.
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