Crypto Miner Greenridge on a Mission to Raise $22.8M

Greenridge Generation, a crypto miner, is on a mission for $22.8 million.

A US Securities and Exchange Commission filed October 3, showing that the firm is seeking to do this in an at-the market offering.

B. Riley Securities has signed a deal with the US-based bitcoin mining business to sell Class A common stock offers. The offer will provide the investment bank with up to 5% gross proceeds.

In the filing, Greenridge wrote, “we (the company) 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.”

The bitcoin mining company had received $100 million in funding in March to expand its US operations.

The loan amount was $81.4 Million from NYDIG’s affiliate and $26.5 Million as a promissory Note with B. Riley Financial, Inc.

Greenridge has announced that it saw an 18% increase in its mining production in June. But, it appears to be looking for funding as it reported a $107.9 million loss in the second quarter.

According to Greenridge’s June operating update, it reported that it had produced approximately 230 Bitcoins. This is an 18% increase over the 195 Bitcoins it mined May.

According to the miner, it has increased its hashrate capacity by 2.5 exahash per sec (“EH/s”) at 27,500 mining machines. This is an increase of 1.7 EH/s from 20,400 mining machine capacity in the previous month.

Greenridge claimed that 200 additional mining machines were ordered by the company. These machines are currently being transported and will be installed once they arrive.

After its second quarter losses, the company announced in August that it would suspend expansion plans for Texas. It mentioned a “sudden shift in mining economics” and stated it would concentrate on its South Carolina, New York locations. 

However, the New York Department of Environmental Conservation denied bitcoin mining company its June air permit renewal because it did not comply with state climate laws.

NYSDEC released a statement stating that Greenridge’s application was incompatible with climate goals outlined by the state’s Climate Leadership and Community Protection Act. This Act focuses on reducing New York’s greenhouse gases emission by at most 85% by 2050.

Source: Shutterstock



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