Greenidge Generation Holdings Inc. (GREE) | Investment Case

1. Company Snapshot

1.a. Company Description

Greenidge Generation Holdings Inc.operates as an integrated cryptocurrency datacenter and power generation company.The company owns and operates cryptocurrency datacenters in New York and South Carolina.

It also owns and operates a 106 MW power generation facility.The company was founded in 1937 and is based in Fairfield, Connecticut.

Show Full description

1.b. Last Insights on GREE

Negative drivers behind Greenidge Generation Holdings Inc.'s recent performance include a net loss in Q4 2024, despite a $2.4 million revenue increase from Q3 2024. The company's dependence on cryptocurrency markets and Bitcoin mining may be a concern, as market volatility could impact its revenue stream. Additionally, the sale of the Spartanburg property to Data Journey for $12.1 million may have contributed to the net loss, as it could be a non-core asset divestiture. Furthermore, Greenidge's focus on AI/HPC and power generation may be a distraction from its core cryptocurrency datacenter business.

1.c. Company Highlights

Last Price	1.73
Change Percentage	0.00%
Open	1.7
Previous Close	1.73
Market Cap ( Millions)	27
Volume	308388
Year High	2.43
Year Low	0.58
M A 50	1.76
M A 200	1.37

FCF Yield	-74.10%
Dividend Yield	0.00%
ROE	2.90%
Debt / Equity	-7.15%
Net Debt / EBIDTA	-220.25%
Price To Book	-0.55
Price Earnings Ratio	-16.62
Price To FCF	-1.35
Price To sales	0.44
EV / EBITDA	12.67

2. Transcript Summary

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3. NewsRoom

Greenidge Generation Announces Changes to its Board of Directors

Apr -16

Source: businesswire.com

Greenidge Generation Reports Preliminary Financial and Operating Results for the Fourth Quarter and Full Year 2024

Mar -06

Source: businesswire.com

Water Tower Research Publishes Initiation of Coverage Report on Greenidge Generation Holdings, Inc., “Future of Integrated Crypto Data Centers and Power Generation Looks Bright”

Feb -20

Source: thenewswire.com

Data Journey on Aggressive Growth Track: Announces Purchase of Spartanburg Property from Greenidge Generation for $12.1 Million

Dec -12

Source: globenewswire.com

Greenidge Generation Announces Sale of South Carolina Property to Data Journey for $12.1 Million and 8% Stake in Planned Data Center's Profits

Dec -04

Source: businesswire.com

New York Supreme Court Rules for Greenidge Generation

Nov -14

Source: businesswire.com

Greenidge Announces Preliminary Financial and Operating Results for the Third Quarter 2024

Oct -14

Source: businesswire.com

Greenidge Generation Announces Preliminary Financial and Operating Results for the First Quarter 2024 and Release of Investor Presentation

May -01

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (23.43%)

6. Segments

Datacenter Hosting

Expected Growth: 23.0%

Greenidge Generation Holdings Inc.'s 23.0% growth in Datacenter Hosting is driven by increasing demand for cloud computing, rising adoption of cryptocurrencies, and growing need for secure and efficient data storage. Additionally, the company's focus on sustainability and renewable energy sources resonates with environmentally conscious clients, contributing to its rapid expansion.

Cryptocurrency Datacenter

Expected Growth: 25.33%

Greenidge Generation Holdings Inc.'s Cryptocurrency Datacenter growth is driven by increasing demand for cryptocurrency mining, strategic location in New York with low-cost energy, and high-performance computing infrastructure. Additionally, the company's focus on sustainability and environmentally friendly operations resonates with ESG-conscious investors, contributing to its 25.33% growth.

Power and Capacity

Expected Growth: 19.3%

Greenidge Generation Holdings Inc.'s 19.3% growth is driven by increasing demand for renewable energy, expansion of data center operations, and strategic partnerships. The company's focus on sustainable power and capacity solutions resonates with environmentally conscious clients, leading to increased adoption and revenue growth.

7. Detailed Products

Bitcoin Mining

Greenidge Generation Holdings Inc. operates a bitcoin mining operation, utilizing its existing power generation infrastructure to mine bitcoin, providing a new revenue stream for the company.

Renewable Energy

The company generates electricity through its portfolio of renewable energy sources, including hydroelectric power, providing clean energy to the grid.

Data Center Hosting

Greenidge Generation Holdings Inc. offers data center hosting services, providing a secure and reliable environment for customers to host their data and applications.

Cloud Computing

The company provides cloud computing services, offering customers scalable and on-demand access to computing resources and storage.

8. Greenidge Generation Holdings Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Greenidge Generation Holdings Inc. is medium due to the availability of alternative energy sources such as solar and wind power.

Bargaining Power Of Customers

The bargaining power of customers for Greenidge Generation Holdings Inc. is low due to the lack of negotiating power of individual customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Greenidge Generation Holdings Inc. is medium due to the presence of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants for Greenidge Generation Holdings Inc. is high due to the low barriers to entry in the energy market.

Intensity Of Rivalry

The intensity of rivalry for Greenidge Generation Holdings Inc. is high due to the presence of multiple competitors in the energy market.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	373.75%
Debt Cost	5.41%
Equity Weight	-273.75%
Equity Cost	20.90%
WACC	-36.97%
Leverage	-136.53%

11. Quality Control: Greenidge Generation Holdings Inc. passed 4 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Siebert Financial

A-Score: 5.0/10

Value: 7.0

Growth: 6.9

Quality: 7.2

Yield: 0.0

Momentum: 7.0

Volatility: 2.0

1-Year Total Return ->

A-Mark Precious Metals

A-Score: 4.7/10

Value: 6.2

Growth: 5.1

Quality: 3.7

Yield: 8.0

Momentum: 0.5

Volatility: 4.7

1-Year Total Return ->

TeraWulf

A-Score: 4.7/10

Value: 6.0

Growth: 4.3

Quality: 3.5

Yield: 5.0

Momentum: 9.0

Volatility: 0.3

1-Year Total Return ->

Perella Weinberg

A-Score: 4.7/10

Value: 5.3

Growth: 2.8

Quality: 6.6

Yield: 4.0

Momentum: 4.5

Volatility: 4.7

1-Year Total Return ->

Greenidge Generation Holdings

A-Score: 3.9/10

Value: 9.8

Growth: 4.0

Quality: 5.9

Yield: 0.0

Momentum: 3.5

Volatility: 0.3

1-Year Total Return ->

Bitcoin Depot

A-Score: 3.9/10

Value: 6.3

Growth: 2.1

Quality: 3.9

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

3.14%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

-36.97%

Greenidge Generation Holdings Inc. - US39531G3083

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on GREE

1.c. Company Highlights

More Volatile

Cheaper

Average Yield

Earnings Miss

Weak Momentum

Lower Yield

Lower Growth

Revenues Miss

Lower Quality

Revenues Beats

Earnings Beats

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (23.43%)

6. Segments

Datacenter Hosting

Expected Growth: 23.0%

Cryptocurrency Datacenter

Expected Growth: 25.33%

Power and Capacity

Expected Growth: 19.3%

7. Detailed Products

Bitcoin Mining

Renewable Energy

Data Center Hosting

Cloud Computing

8. Greenidge Generation Holdings Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Greenidge Generation Holdings Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.73$

Current Price

1.73$

Potential

0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA