UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)
x    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 20222023
OR
o    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____________________ to _____________________
Commission File Number: 001-40808

Greenidge Generation Holdings Inc.
(Exact Name of Registrant as Specified in its Charter)

Delaware86-1746728
(State or other jurisdiction of
incorporation or organization)		(I.R.S. Employer
Identification No.)
135 Rennell Drive, 3rd Floor
 Fairfield, CT
06890
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code: (203) 718-5960
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbol(s)Name of each exchange on which registered
Class A Common Stock, $0.0001 par valueGREEThe Nasdaq Global Select Market
8.50% Senior Notes due 2026GREELThe Nasdaq Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated fileroAccelerated filero
Non-accelerated filerxSmaller reporting companyx
Emerging growth companyx
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x
Securities registered pursuant to Section 12(g) of the Act: None
As of November 11, 2022,10, 2023, the registrant had 16,213,0434,507,874 shares of Class A common stock, $0.0001 par value per share, outstanding and 28,526,3722,852,639 shares of Class B common stock, $0.0001 par value per share, outstanding.



Table of Contents
Page
3
4
5
7
89
2328
4351
4351
4452
4452
4955
4955
4955
4955
4956
Exhibit Index
5056
5158
1


CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q includes certain statements that may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements other than statements of historical fact are forward-looking statements for purposes of federal and state securities laws. These forward-looking statements involve uncertainties that could significantly affect our financial or operating results. These forward-looking statements may be identified by terms such as “anticipate,” “believe,” “continue,” “foresee,” “expect,” “intend,” “plan,” “may,” “will,” “would” “could” and “should” and the negative of these terms or other similar expressions. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties and are not guarantees of future performance. Forward-looking statements in this document include, among other things, statements regarding our business plan, business strategy and operations in the future. In addition, all statements that address operating performance and future performance, events or developments that are expected or anticipated to occur in the future, including statements relating to creating value for stockholders, are forward-looking statements.
Forward-looking statements are subject to a number of risks, uncertainties and assumptions. Matters and factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements include but are not limited to the matters and factors described in Part I, Item 1A. “Risk Factors” of Greenidge's Form 10-K for the year ended December 31, 20212022 filed with the Securities and Exchange Commission ("SEC") on March 31, 20222023 and in this Quarterly Report on Form 10-Q, as well as those described from time to time in our future reports filed with the SEC, which should be reviewed carefully. Please consider Greenidge's forward-looking statements in light of those risks.
2


PART I—FINANCIAL INFORMATION
Item 1. Financial Statements
Greenidge Generation Holdings Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands, except share data)
September 30, 2022
(Unaudited)		December 31, 2021September 30, 2023December 31, 2022
(Unaudited)
ASSETSASSETSASSETS
CURRENT ASSETS:CURRENT ASSETS:CURRENT ASSETS:
Cash and cash equivalents$28,013 $82,599 
Restricted cash10,500 — 
Short-term investments— 496 
Cash, restricted cash and cash equivalentsCash, restricted cash and cash equivalents$10,687 $15,217 
Digital assetsDigital assets337 476 Digital assets— 348 
Accounts receivable4,704 5,524 
Prepaid expenses9,694 9,146 
Accounts Receivable, net of allowance for doubtful accounts of $0 at September 30, 2023 and December 31, 2022Accounts Receivable, net of allowance for doubtful accounts of $0 at September 30, 2023 and December 31, 2022275 2,696 
Prepaid expenses and other assetsPrepaid expenses and other assets8,017 6,266 
Emissions and carbon offset creditsEmissions and carbon offset credits1,259 2,361 Emissions and carbon offset credits1,597 1,260 
Income tax receivableIncome tax receivable857 798 
Current assets held for saleCurrent assets held for sale507 6,473 
Total current assetsTotal current assets54,507 100,602 Total current assets21,940 33,058 
LONG-TERM ASSETS:LONG-TERM ASSETS:LONG-TERM ASSETS:
Property and equipment, netProperty and equipment, net246,071 217,091 Property and equipment, net47,777 130,417 
Right-of-use assets222 1,472 
Intangible assets, net2,841 3,537 
Goodwill3,062 3,062 
Deferred tax assets29 15,058 
Other long-term assetsOther long-term assets615 445 Other long-term assets800 292 
Long-term assets held for saleLong-term assets held for sale19,295 — 
Total assetsTotal assets$307,347 $341,267 Total assets89,812 163,767 
LIABILITIES AND STOCKHOLDERS' EQUITYLIABILITIES AND STOCKHOLDERS' EQUITYLIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:CURRENT LIABILITIES:CURRENT LIABILITIES:
Accounts payableAccounts payable$4,064 $5,923 Accounts payable13,664 9,608 
Accrued emissions expenseAccrued emissions expense5,226 2,634 Accrued emissions expense7,924 6,052 
Accrued expensesAccrued expenses15,560 10,375 Accrued expenses8,016 11,327 
Income taxes payable185 2,481 
Short-term environmental liabilityShort-term environmental liability1,700 600 
Long-term debt, current portionLong-term debt, current portion73,218 19,577 Long-term debt, current portion2,365 67,161 
Lease obligations, current portion112 736 
Current liabilities held for saleCurrent liabilities held for sale1,732 3,974 
Total current liabilitiesTotal current liabilities98,365 41,726 Total current liabilities35,401 98,722 
LONG-TERM LIABILITIES:LONG-TERM LIABILITIES:LONG-TERM LIABILITIES:
Long-term debt, net of current portion and deferred financing feesLong-term debt, net of current portion and deferred financing fees96,515 75,251 Long-term debt, net of current portion and deferred financing fees87,085 84,585 
Lease obligations, net of current portion137 193 
Environmental liabilitiesEnvironmental liabilities22,415 11,306 Environmental liabilities27,733 27,400 
Other long-term liabilitiesOther long-term liabilities358 368 Other long-term liabilities4,820 107 
Total liabilitiesTotal liabilities217,790 128,844 Total liabilities155,039 210,814 
COMMITMENTS AND CONTINGENCIES (NOTE 13)
STOCKHOLDERS' EQUITY:STOCKHOLDERS' EQUITY:STOCKHOLDERS' EQUITY:
Preferred stock, par value $0.0001, 20,000,000 shares authorized, none outstandingPreferred stock, par value $0.0001, 20,000,000 shares authorized, none outstanding— — Preferred stock, par value $0.0001, 20,000,000 shares authorized, none outstanding— — 
Common stock, par value $0.0001, 3,000,000,000 shares authorized, 42,964,462 and 40,865,336 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively4 4 
Common stock, par value $0.0001, 500,000,000 shares authorized, 7,310,481 and 4,625,278 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectivelyCommon stock, par value $0.0001, 500,000,000 shares authorized, 7,310,481 and 4,625,278 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively1 — 
Additional paid-in capitalAdditional paid-in capital290,576 281,815 Additional paid-in capital308,030 293,774 
Cumulative translation adjustmentCumulative translation adjustment(139)— Cumulative translation adjustment(342)(357)
Accumulated deficitAccumulated deficit(200,884)(69,396)Accumulated deficit(372,916)(340,464)
Total stockholders' equityTotal stockholders' equity89,557 212,423 Total stockholders' equity(65,227)(47,047)
Total liabilities and stockholders' equityTotal liabilities and stockholders' equity$307,347 $341,267 Total liabilities and stockholders' equity$89,812 $163,767 
The accompanying notes are an integral part of these condensed consolidated financial statements.
3


Greenidge Generation Holdings Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (UNAUDITED)
(in thousands, except per share data)
Three Months Ended September 30,Nine Months Ended September 30,Three Months Ended September 30,Nine Months Ended September 30,
20222021202220212023202220232022
REVENUE:REVENUE:REVENUE:
Cryptocurrency datacenter$18,272 $31,156 $61,571 $54,217 
Datacenter hosting revenueDatacenter hosting revenue$12,136 $— $28,740 $— 
Cryptocurrency mining revenue, netCryptocurrency mining revenue, net6,602 18,272 17,033 61,571 
Power and capacityPower and capacity3,613 3,077 12,395 7,255 Power and capacity2,141 3,613 4,973 12,395 
Services and other7,474 1,521 24,387 1,521 
Total revenueTotal revenue29,359 35,754 98,353 62,993 Total revenue20,879 21,885 50,746 73,966 
OPERATING COSTS AND EXPENSES:OPERATING COSTS AND EXPENSES:OPERATING COSTS AND EXPENSES:
Cost of revenue - cryptocurrency datacenter (exclusive of depreciation and amortization)14,675 5,974 34,795 11,504 
Cost of revenue - power and capacity (exclusive of depreciation and amortization)3,760 2,831 10,955 6,688 
Cost of revenue - services and other (exclusive of depreciation and amortization)3,660 854 11,304 854 
Cost of revenue - datacenter hosting (exclusive of depreciation)Cost of revenue - datacenter hosting (exclusive of depreciation)9,432 — 20,830 — 
Cost of revenue - cryptocurrency mining (exclusive of depreciation)Cost of revenue - cryptocurrency mining (exclusive of depreciation)4,458 14,675 10,639 34,796 
Cost of revenue - power and capacity (exclusive of depreciation)Cost of revenue - power and capacity (exclusive of depreciation)1,465 3,760 4,762 10,955 
Selling, general and administrativeSelling, general and administrative10,240 5,446 35,720 12,017 Selling, general and administrative6,662 7,789 22,724 27,889 
Merger and other costs242 29,847 940 31,095 
Depreciation and amortization13,835 2,667 22,680 5,531 
DepreciationDepreciation3,383 13,511 10,368 21,701 
Impairment of long-lived assetsImpairment of long-lived assets— — 71,500 — Impairment of long-lived assets4,000 — 4,000 71,500 
Loss (gain) on sale of assetsLoss (gain) on sale of assets— 759 (1,752)130 
Remeasurement of environmental liabilityRemeasurement of environmental liability— — 11,109 — Remeasurement of environmental liability1,600 — 1,600 11,109 
Total operating costs and expensesTotal operating costs and expenses46,412 47,619 199,003 67,689 Total operating costs and expenses31,000 40,494 73,171 178,080 
Loss from operations(17,053)(11,865)(100,650)(4,696)
Operating lossOperating loss(10,121)(18,609)(22,425)(104,114)
OTHER EXPENSE, NET:OTHER EXPENSE, NET:OTHER EXPENSE, NET:
Interest expense, netInterest expense, net(5,430)(1,009)(15,693)(1,377)Interest expense, net(3,040)(5,430)(9,725)(15,692)
Interest expense - related party— — — (22)
Gain (loss) on sale of digital assetsGain (loss) on sale of digital assets— 18 (15)159 Gain (loss) on sale of digital assets— — 398 (15)
Loss on sale of assets(759)— (130)— 
Other income (loss), net144 (29)200 (23)
Other income (expense), netOther income (expense), net— 126 (4)164 
Total other expense, netTotal other expense, net(6,045)(1,020)(15,638)(1,263)Total other expense, net(3,040)(5,304)(9,331)(15,543)
Loss before income taxes(23,098)(12,885)(116,288)(5,959)
Loss from continuing operations before income taxesLoss from continuing operations before income taxes(13,161)(23,913)(31,756)(119,657)
Provision for income taxesProvision for income taxes79 (4,989)15,200 (2,860)Provision for income taxes— — — 15,038 
Net loss from continuing operationsNet loss from continuing operations(13,161)(23,913)(31,756)(134,695)
(Loss) income from discontinued operations, net of tax(Loss) income from discontinued operations, net of tax(1,078)736 (696)3,207 
Net lossNet loss(23,177)(7,896)(131,488)(3,099)Net loss$(14,239)$(23,177)$(32,452)$(131,488)
Foreign currency translation adjustment27 — (139)— 
Comprehensive loss$(23,150)$(7,896)$(131,627)$(3,099)
Loss per share:
(Loss) income per basic share:(Loss) income per basic share:
Loss per basic share from continuing operationsLoss per basic share from continuing operations$(1.81)$(5.66)$(5.01)$(32.36)
(Loss) income per basic share from discontinued operations(Loss) income per basic share from discontinued operations(0.15)0.17 (0.11)0.77 
Loss per basic shareLoss per basic share$(1.96)$(5.49)$(5.12)$(31.59)
(Loss) income per diluted share:(Loss) income per diluted share:
Loss per diluted share from continuing operationsLoss per diluted share from continuing operations$(1.81)$(5.66)$(5.01)$(32.36)
(Loss) income per diluted share from discontinued operations(Loss) income per diluted share from discontinued operations(0.15)0.17 (0.11)0.77 
Loss per diluted shareLoss per diluted share$(1.96)$(5.49)$(5.12)$(31.59)
Average Shares OutstandingAverage Shares Outstanding
BasicBasic$(0.55)$(0.26)$(3.16)$(0.13)Basic7,262 4,224 6,341 4,162 
DilutedDiluted$(0.55)$(0.26)$(3.16)$(0.13)Diluted7,262 4,224 6,341 4,162 
The accompanying notes are an integral part of these condensed consolidated financial statements.
4


Greenidge Generation Holdings Inc.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)
(in thousands, except share and member unit data)
Preferred StockCommon StockAdditional
Paid - In
Capital		Common UnitsPreferred UnitsSenior Priority UnitsTotal
Members'
Capital		Cumulative
Translation
Adjustment		Accumulated
Deficit		  TotalCommon StockAdditional
Paid - In
Capital		Cumulative
Translation
Adjustment		Accumulated
Deficit		  Total
SharesAmountSharesAmountNumber
of Units		Members'
 Capital		Number
of Units		Members'
 Capital		Number
of Units		Members'
Capital		SharesAmount
Balance at January 1, 2022— $— 40,865,336 $4 $281,815 — — — — — — $— $— $(69,396)$212,423 
Balance at January 1, 2023Balance at January 1, 20234,625,278 $— $293,774 $(357)$(340,464)$(47,047)
Stock-based compensation expenseStock-based compensation expense— — — — 362 — — — — — — — — — 362 Stock-based compensation expense— — 481 — — 481 
Issuance of shares, net of issuance costsIssuance of shares, net of issuance costs— — 415,000 — 3,791 — — — — — — — — — 3,791 Issuance of shares, net of issuance costs1,211,926 1 8,095 — — 8,096 
Restricted shares award issuance, net of withholdingsRestricted shares award issuance, net of withholdings— — 82,601 — (65)— — — — — — — — — (65)Restricted shares award issuance, net of withholdings9,275 — — — — — 
Proceeds from stock options exercised— — 334 — 2 — — — — — — — — 2 
Issuance of shares for amendment fee associated with debt modification (Note 9), net of issuance costsIssuance of shares for amendment fee associated with debt modification (Note 9), net of issuance costs133,333 — 1,000 — — 1,000 
Foreign currency translation adjustmentForeign currency translation adjustment— — — — — — — — — — — — (32)— (32)Foreign currency translation adjustment— — — 17 — 17 
Net lossNet loss— — — — — — — — — — — — (429)(429)Net loss— — — — (8,171)(8,171)
Balance at March 31, 2022— — 41,363,271 4 285,905 — — — — — — — (32)(69,825)216,052 
Balance at March 31, 2023Balance at March 31, 20235,979,812 $1 $303,350 $(340)$(348,635)$(45,624)
Stock-based compensation expenseStock-based compensation expense— — — — 306 — — — — — — — — — 306 Stock-based compensation expense— — 568 — — 568 
Issuance of shares, net of issuance costsIssuance of shares, net of issuance costs— — 553,587 — 2,078 — — — — — — — — 2,078 Issuance of shares, net of issuance costs1,253,434 — 3,320 — — 3,320 
Proceeds from stock options exercised— — 1,962 — 12 — — — — — — — — 12 
Restricted shares award issuance, net of withholdingsRestricted shares award issuance, net of withholdings3,368 — — — — — 
Foreign currency translation adjustmentForeign currency translation adjustment— — — — — — — — — — — — (134)— (134)Foreign currency translation adjustment— — — 10 — 10 
Net lossNet loss— — — — — — — — — — — — (107,882)(107,882)Net loss— — — — (10,042)(10,042)
Balance at June 30, 2022— — 41,918,820 4 288,301 — — — — — — — (166)(177,707)110,432 
Balance at June 30, 2023Balance at June 30, 20237,236,614 $1 $307,238 $(330)$(358,677)$(51,768)
Stock-based compensation expenseStock-based compensation expense— — — — 361 — — — — — — — — — 361 Stock-based compensation expense— — 482 — — 482 
Issuance of shares, net of issuance costsIssuance of shares, net of issuance costs— — 1,045,642 — 1,914 — — — — — — — — 1,914 Issuance of shares, net of issuance costs73,825 — 310 — — 310 
Restricted shares award issuance, net of withholdingsRestricted shares award issuance, net of withholdings42 — — — — — 
Foreign currency translation adjustmentForeign currency translation adjustment— — — — — — — — — — — — 27 — 27 Foreign currency translation adjustment— — — (12)— (12)
Net lossNet loss— — — — — — — — — — — — — (23,177)(23,177)Net loss— — — — (14,239)(14,239)
Balance at September 30, 2022— $— 42,964,462 $4 $290,576 — — — — — — $— $(139)$(200,884)$89,557 
Balance at September 30, 2023Balance at September 30, 20237,310,481 $1 $308,030 $(342)$(372,916)$(65,227)
5


Preferred StockCommon StockAdditional
Paid - In
Capital		Common UnitsPreferred UnitsSenior Priority UnitsTotal
Members'
Capital		Cumulative
Translation
Adjustment		Accumulated
Deficit		Total
SharesAmountSharesAmountNumber
of Units		Members'
 Capital		Number
of Units		Members'
 Capital		Number
of Units		Members'
Capital
Balance at January 1, 2021— $— — $— $— 750 — 39,228 39,074 10,000 30,202 $69,276 $— $(24,916)$44,360 
Contribution of GGH Preferred Units, GGH Senior Priority Units, and notes payable to related party for GGHI Common Stock— — 26,800,300 3 72,888 — — (39,228)(39,074)(10,000)(30,202)(69,276)— — 3,615 
Contribution of GGH Common Units for GGHI Common Stock— — 1,199,700 — — (750)— — — — — — — — — 
Proceeds from sale of preferred stock, net of stock issuance costs of $3,3871,620,000 1 — — 37,112 — — — — — — — — — 37,113 
Stock-based compensation expense— — — — 1,063 — — — — — — — — — 1,063 
Proceeds from stock options exercised— — 160,000 — 1,000 — — — — — — — — — 1,000 
Stock issued to purchase miners— — 160,000 — 991 — — — — — — — — — 991 
Net income— — — — — — — — — — — — — 4,797 4,797 
Balance at June 30, 20211,620,000 1 28,320,000 3 113,054 — — — — — — — — (20,119)92,939 
Shares issued to Support.com shareholders upon Merger, net of issuance costs of $2,296— — 2,960,731 — 91,588 — — — — — — — — — 91,588 
Issuance of shares for investor fee associated with successful completion of Merger— — 562,174 — 17,826 — — — — — — — — — 17,826 
Issuance of warrants to advisor in connection with completion of Merger— — — — 8,779 — — — — — — — — — 8,779 
Conversion of preferred stock(1,620,000)(1)6,480,000 1 — — — — — — — — — — — 
Shares issued upon exercise of warrants— — 344,800 — 2,155 — — — — — — — — — 2,155 
Stock-based compensation expense— — — — 411 — — — — — — — — — 411 
Net loss— — — — — — — — — — — — — (7,896)(7,896)
Balance at September 30, 2021— $— 38,667,705 $4 $233,813 — — — — — — $— $— $(28,015)$205,802 
Common StockAdditional
Paid - In
Capital		Cumulative
Translation
Adjustment		Accumulated
Deficit		Total
SharesAmount
Balance at January 1, 20224,086,534 $— $281,819 $— $(69,396)$212,423 
Stock-based compensation expense— — 362 — — 362 
Issuance of shares, net of issuance costs41,500 — 3,791 — — 3,791 
Restricted shares award issuance, net of withholdings8,260 — (65)— — (65)
Proceeds from stock options exercised33 — 2 — — 2 
Foreign currency translation adjustment— — — (32)— (32)
Net loss— — — — (429)(429)
Balance at March 31, 20224,136,327 $— $285,909 $(32)$(69,825)$216,052 
Stock-based compensation expense— — 306 — — 306 
Issuance of shares, net of issuance costs55,359 — 2,078 — — 2,078 
Proceeds from stock options exercised196 — 12 — — 12 
Foreign currency translation adjustment— — — (134)— (134)
Net loss— — — — (107,882)(107,882)
Balance at June 30, 20224,191,882 $— $288,305 $(166)$(177,707)$110,432 
Stock-based compensation expense— — 361 — — 361 
Issuance of shares, net of issuance costs104,564 — 1,914 — — 1,914 
Foreign currency translation adjustment— — — 27 — 27 
Net loss— — — — (23,177)(23,177)
Balance at September 30, 20224,296,446 $— $290,580 $(139)$(200,884)$89,557 

The accompanying notes are an integral part of these condensed consolidated financial statements.

6


Greenidge Generation Holdings Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
Nine Months Ended September 30,Nine Months Ended September 30,
2022202120232022
CASH FLOW FROM OPERATING ACTIVITIES:
OPERATING ACTIVITIES FROM CONTINUING OPERATIONS:OPERATING ACTIVITIES FROM CONTINUING OPERATIONS:
Net lossNet loss$(131,488)$(3,099)Net loss$(32,452)$(131,488)
Adjustments to reconcile net loss to net cash flow from operating activities:
Depreciation and amortization22,680 5,531 
Income from discontinued operationsIncome from discontinued operations(696)3,207 
Net loss from continuing operationsNet loss from continuing operations(31,756)(134,695)
Adjustments to reconcile net loss from continuing operations to net cash flow from operating activities:Adjustments to reconcile net loss from continuing operations to net cash flow from operating activities:
DepreciationDepreciation10,368 21,701 
Impairment of long-lived assetsImpairment of long-lived assets4,000 71,500 
Interest expense added to principalInterest expense added to principal1,212 — 
Deferred income taxesDeferred income taxes15,016 (2,945)Deferred income taxes— 15,016 
Impairment of long-lived assets71,500 — 
Amortization of debt issuance costsAmortization of debt issuance costs3,059 54 Amortization of debt issuance costs2,137 3,059 
Impairment of digital assetsImpairment of digital assets— 85 
Gain on sale of assetsGain on sale of assets(1,752)130 
Impairment of digital assets85 — 
Loss on sale of assets130 — 
Remeasurement of environmental liabilityRemeasurement of environmental liability11,109 170 Remeasurement of environmental liability1,600 11,109 
Stock-based compensation expenseStock-based compensation expense1,029 1,474 Stock-based compensation expense1,531 1,029 
Investor fee paid in common stock— 17,826 
Advisor fee paid in warrants— 8,779 
Professional fees paid in common stockProfessional fees paid in common stock250 — 
Changes in operating assets and liabilities:Changes in operating assets and liabilities:Changes in operating assets and liabilities:
Accounts receivableAccounts receivable820 272 Accounts receivable2,421 (40)
Emissions and carbon offset creditsEmissions and carbon offset credits1,102 107 Emissions and carbon offset credits(337)1,102 
Digital assetsDigital assets348 — 
Prepaids and other assetsPrepaids and other assets(548)(5,955)Prepaids and other assets(1,801)(174)
Income tax receivableIncome tax receivable(59)— 
Accounts payableAccounts payable(1,559)(455)Accounts payable7,518 (1,627)
Accrued emissionsAccrued emissions2,592 (408)Accrued emissions1,872 2,592 
Accrued expensesAccrued expenses5,185 5,315 Accrued expenses(2,717)5,111 
Income taxes payable(2,296)— 
Income tax payableIncome tax payable— (2,344)
Other long-term liabilitiesOther long-term liabilities4,713 — 
OtherOther358 — Other(458)392 
Net cash flow used for operating activities(1,226)26,666 
CASH FLOW FROM INVESTING ACTIVITIES:
Net cash flow used for operating activities from continuing operationsNet cash flow used for operating activities from continuing operations(910)(6,054)
INVESTING ACTIVITIES FROM CONTINUING OPERATIONS:INVESTING ACTIVITIES FROM CONTINUING OPERATIONS:
Purchases of and deposits for property and equipmentPurchases of and deposits for property and equipment(127,374)(65,757)Purchases of and deposits for property and equipment(10,952)(127,368)
Proceeds from sale of assetsProceeds from sale of assets4,802 — Proceeds from sale of assets600 4,802 
Proceeds from sale of marketable securitiesProceeds from sale of marketable securities496 — Proceeds from sale of marketable securities— 496 
Cash received in merger—27,113
Net cash flow used for investing activities(122,076)(38,644)
CASH FLOW FROM FINANCING ACTIVITIES:
Proceeds from issuance of preferred stock, net of issuance costs— 37,113 
Net cash flow used for investing activities from continuing operationsNet cash flow used for investing activities from continuing operations(10,352)(122,070)
FINANCING ACTIVITIES FROM CONTINUING OPERATIONS:FINANCING ACTIVITIES FROM CONTINUING OPERATIONS:
Proceeds from issuance of common stock, net of issuance costsProceeds from issuance of common stock, net of issuance costs7,783 — Proceeds from issuance of common stock, net of issuance costs11,475 7,783 
Proceeds from stock options exercisedProceeds from stock options exercised14 1,000 Proceeds from stock options exercised— 14 
Proceeds from warrants exercised— 2,155 
Issuance costs associated with shares issued for Support acquisition— (2,296)
Restricted stock unit awards settled in cash for taxesRestricted stock unit awards settled in cash for taxes(65)— Restricted stock unit awards settled in cash for taxes— (65)
Proceeds from debt, net of issuance costsProceeds from debt, net of issuance costs107,105 25,112 Proceeds from debt, net of issuance costs— 107,105 
Principal payments on debtPrincipal payments on debt(35,258)(4,440)Principal payments on debt(6,809)(35,258)
Repayments of lease obligationsRepayments of lease obligations(363)(569)Repayments of lease obligations— (363)
Net cash flow provided by financing activities$79,216 $58,075 
CHANGE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH(44,086)46,097 
CASH AND CASH EQUIVALENTS - beginning of year82,599 5,052 
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH - end of period$38,513 $51,149 
Net cash flow provided by financing activities from continuing operationsNet cash flow provided by financing activities from continuing operations4,666 79,216 
Discontinued Operations:Discontinued Operations:
Net cash flow from operating activities of discontinued operationsNet cash flow from operating activities of discontinued operations(1,259)4,828 
Net cash flow from investing activities of discontinued operationsNet cash flow from investing activities of discontinued operations3,325 (6)
Increase in cash and cash equivalents from discontinued operationsIncrease in cash and cash equivalents from discontinued operations2,066 4,822 
CHANGE IN CASH, RESTRICTED CASH AND CASH EQUIVALENTSCHANGE IN CASH, RESTRICTED CASH AND CASH EQUIVALENTS(4,530)(44,086)
CASH, RESTRICTED CASH AND CASH EQUIVALENTS - beginning of yearCASH, RESTRICTED CASH AND CASH EQUIVALENTS - beginning of year15,217 82,599 
CASH, RESTRICTED CASH AND CASH EQUIVALENTS - end of periodCASH, RESTRICTED CASH AND CASH EQUIVALENTS - end of period$10,687 $38,513 
7



See Note 13 for supplemental cash flow information
The accompanying notes are an integral part of these condensed consolidated financial statements.
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1. ORGANIZATION AND DESCRIPTION OF BUSINESS
Greenidge Generation Holdings Inc. (“Greenidge”("Greenidge") and its subsidiaries (collectively, the “Company”"Company") own and operate a vertically integrated cryptocurrency datacenter and power generation company. The Company owns and operates facilities at two locations:a facility in the Town of Torrey, New York (the "New York Facility") and owned and operated a facility in Spartanburg, South Carolina.Carolina (the "South Carolina Facility"). The Company’s cryptocurrency datacenter operations generateCompany generates revenue in U.S. dollars by providing hosting, power and technical support services to third-party owned bitcoin mining equipment and generates revenue in the form of bitcoin by earning bitcoin as rewards and transaction fees for supporting the global bitcoin network with application-specific integrated circuit computers (“ASICs”("ASICs" or “miners”"miners") owned by the Company.Company, which may be operated at the Company's sites or at third-party hosting sites through short-term hosting agreements. The earned bitcoin isare then exchanged for U.S. dollars. The Company also owns and operates a 106 megawatt ("MW") power facility that is connected to the New York Independent System Operator (“NYISO”("NYISO") power grid. TheIn addition to the electricity used "behind the meter" by the New York datacenter, the Company sells electricity to the NYISO at all times when its power plant is running and increases or decreases the amount of electricity sold based on prevailing prices in the wholesale electricity market and demand for electricity.
Merger with Support.com, Inc.
On SeptemberNovember 9, 2023, the Company closed the sale of the South Carolina Facility as part of a deleveraging transaction. See Note 14, 2021, GGH Merger Sub, Inc. (“Merger Sub”), a wholly owned subsidiary of Greenidge, merged with and into Support.com, Inc. (“Support.com”), with Support.com continuing as the surviving corporation (the “Merger”) and a wholly owned subsidiary of Greenidge, pursuant to the Agreement and Plan of Merger, dated March 19, 2021 (the “Merger Agreement”), among Greenidge, Support.com and Merger Sub.
The Merger combined the respective businesses of Greenidge and Support.com through an all-stock transaction and has been accounted for using the acquisition method of accounting in accordance with the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification ("ASC") 805, Business CombinationsSubsequent Events, with Greenidge being deemedfor further details.
Effective May 16, 2023, the acquiring company for accounting purposes (see Note 3). Prior to the Merger, Greenidge's class ACompany effected a 1-for-10 reverse stock split of its outstanding shares of common stock. Unless specifically provided otherwise herein, all share and per share amounts of our common stock ("class A common stock") was registered pursuantpresented have been retroactively adjusted to reflect the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and, upon completion of the Merger on September 15, 2021, began trading on The Nasdaq Global Select Market ("Nasdaq") under the ticker symbol “GREE”. Concurrently, Support.com deregistered its shares pursuant to the Exchange Act.reverse stock split. See Note 9, "
Support.com provides solutions and technical programs to customers delivered by home-based employees. Support.com’s homesourcing model, which enables outsourced work to be delivered by people working from home, has been specifically designedStockholder's Equity", for remote work, with attention to security, recruiting, training, delivery, and employee engagement. Since the consummation of the Merger, the Support.com business operates as a wholly-owned subsidiary and a segment of Greenidge.further details.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Presentation of Condensed Consolidated Financial Statements
In the opinion of Greenidge management, the accompanying condensed consolidated financial statements include all adjustments necessary for a fair presentation of the results for the interim periods presented and such adjustments are of a normal recurring nature. The results for the unaudited interim condensed consolidated statements of operations and comprehensive (loss) income are not necessarily indicative of results to be expected for the year ending December 31, 20222023 or for any future interim period. The unaudited interim condensed interim consolidated financial statements do not include all of the information and notes required by United States Generally Accepted Accounting Principles ("GAAP") for complete financial statements.
The Company has reflected the operations of its Support.com business as discontinued operations for all periods presented. See Note 3, “Assets Held for Sale and Discontinued Operations” for further information. Unless otherwise noted, amounts and disclosures throughout these notes to the Company's condensed consolidated financial statements relate solely to continuing operations and exclude all discontinued operations.
The accompanying condensed consolidated financial statements should be read in conjunction with the notes to the consolidated financial statements of the Company in Greenidge's 2021its 2022 Annual Report on Form 10-K. There have been no material changes to the Company’s significant accounting policies during 2022.
Going Concern
In accordance with the FASBFinancial Accounting Standards Board (the "FASB") Accounting Standards Update (“ASU”("ASU") 2014-15, Presentation of Financial Statements – Going Concern, the Company’sGreenidge's management evaluated whether there are conditions or events that pose risk associated with the Company's ability to continue as a going concern within one year after the date these financial statements have been issued. The Company’s condensed consolidated financial statements have been prepared assuming that it will continue as a going concern.
When comparing to December 31, 2021, during 2022 the bitcoin price declined as much as 66% and ended the year 64% lower. Natural gas prices were much higher during 2022 compared to 2021, peaking at approximately 160% higher than the December 31, 2021 price, and ending the year approximately 47% higher than the December 31, 2021 price. The volatility in these commodity prices negatively impacted the Company's results in 2022 and, while the market has improved in 2023, the Company continues to address the negative impacts. As a result, management took certain actions during the second half of 2022 and during 2023 to improve the Company's liquidity that are described further below. At September 30, 2023, the Company had $10.7 million of cash, restricted cash and cash equivalents, while having
8
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During the second quarter of 2022, the price of bitcoin decreased approximately 57% and the price of natural gas increased approximately 53% and these economic conditions did not improve during the third quarter. The Company’s profit and cash flows are impacted significantly by volatility in the prices of bitcoin and natural gas, and the volatility in these commodity prices significantly impacted the Company's results during 2022. At September 30, 2022, the Company had $38.5 million of cash and cash equivalents, including restricted cash, and $0.6 million of bitcoin holdings at fair value, while having $24.9$29.6 million of accounts payable and accrued expenses, as well as $88.6an estimated $1.7 million of principal and interest payments on debt due withinenvironmental liability spend in the next 12 months.months, which are the main drivers of a negative ending working capital deficit. Additionally, the Company has $6.1 million of interest payments due over the next twelve months, exclusive of the debt and principal payments which were settled subsequent to September 30, 2023, as a result of the NYDIG transaction described below.
The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. ManagementIn an effort to improve liquidity, the Company has evaluated different optionscompleted or is in the process of completing the following transactions:
•In September 2022, Greenidge entered into an at-the-market issuance sales agreement, as amended, dated as of September 19, 2022, by and among the Company, B. Riley Securities, Inc. (“B. Riley Securities”) and Northland Securities, Inc., relating to shares of Greenidge’s Class A common stock (the "ATM Agreement"), and since October 1, 2022 through November 10, 2023, have received net proceeds of $14.0 million from sales of Class A common stock under the ATM Agreement, of which $11.7 million of net proceeds was received since January 1, 2023. See Note 9, "Stockholder's Equity", for further details.
•On January 30, 2023, the Company entered into debt restructuring agreements with NYDIG ABL LLC ("NYDIG") and B. Riley Commercial Capital, LLC ("B. Riley Commercial"). The restructuring of the NYDIG debt is expected to improve the Company's liquidity during 2023 as the payments required in 2023 on the remaining principal balance is interest payments of $2.0 million. This reduced debt service is substantially lower than the $62.7 million of principal and interest payments which would have been required in 2023 pursuant to the 2021 and 2022 Master Equipment Finance Agreements, both of which were refinanced in January 2023. See Note 5, "Debt" for further details regarding the debt restructuring agreements.
•In conjunction with the restructuring of the debt with NYDIG, the Company also entered into hosting agreements with NYDIG on January 30, 2023 (the “NYDIG Hosting Agreements”), which is expected to improve its liquidity position, as it provided for cost reimbursements for key input costs, while allowing the Company to participate in the upside should bitcoin prices rise.
•In August 2023, in connection with a non-binding term sheet that the Company entered into with NYDIG in June to effect a deleveraging transaction, the Company completed an electrical upgrade at its South Carolina facility increasing the capacity to 44 MW. Upon completion of this expansion, on August 10, 2023, the Company and NYDIG amended the NYDIG Hosting Agreements to increase the number of miners being hosted by Greenidge utilizing all of the expansion. The NYDIG Hosting Agreements were amended in furtherance of the broader transaction contemplated by the non-binding term sheet pursuant to which the Company would sell to NYDIG all of the upgraded mining facilities at the South Carolina site and would also subdivide and sell to NYDIG the approximately 22 acres of land on which the facilities are located. This deleveraging transaction with NYDIG closed on November 9, 2023. In exchange for the sale to NYDIG of the upgraded South Carolina mining facilities and the subdivided approximate 22 acres of land, Greenidge received total consideration of approximately $28 million:
◦The Senior Secured Loan with NYDIG with remaining principal of approximately $17.7 million was extinguished;
◦The B Riley Commercial Secured Promissory Note with remaining principal of approximately $4.1 million as of September 30, 2023, which NYDIG purchased from B. Riley Commercial on July 20, 2023 at par was extinguished;
◦A cash payment of approximately $4.5 million, and;
◦The Company will also receive bonus payments earned of approximately $1.6 million as a result of the completion of the expansion of the upgraded mining facility and the facility's uptime performance, which are payable at the completion of the transition services period, which is anticipated to occur in December 2023.
In conjunction with the sale, the Company and NYDIG terminated the South Carolina Hosting Order. As a result, at the time of closing the Company returned NYDIG's security deposit, which are included in other long-term
10


liabilities as of September 30, 2023, resulting in a cash outflow of $2.2 million. Within thirty days of closing, the Company also expects to receive a cash inflow of $3.5 million from the return of its security deposit held by the local utility, which was included in prepaid expenses and other assets as of September 30, 2023.
Additionally, the Company paid the remaining accrued interest on the Senior Secured and Secured Promissory Note of $0.9 million. The Company also settled certain third party transaction costs and Greenidge's share of local taxes of $0.5 million.
Prior to the closing of the South Carolina Facility sale, the Company had a cash outflow of approximately $0.9 million related to the settlement of accounts payable related to the facility upgrade, which were classified as current liabilities held for sale as of September 30, 2023.
Following the completion of the South Carolina Facility sale, the Company continues to own approximately 153 acres of land in South Carolina, and is assessing potential uses of the remaining site, which may include the sale of the property. The NYDIG Hosting Agreements related to the New York Facility were not impacted by this transaction and remain in place.
•In addition, the Company sold equipment, coupons and certain environmental credits for total proceeds of $11.7 million from the second quarter of 2022 through the second quarter of 2023 to raise additional funds.
•Since entering into the NYDIG Hosting Agreements, the Company has identified opportunities to deploy its company-owned miners. In March 2023, the Company entered into a hosting agreement with Conifex Timber Inc. ("Conifex"), whereby Conifex will provide hosting services to Greenidge utilizing renewable power (the “Conifex Hosting Agreement”). In April 2023, the Company entered into a hosting agreement with Core Scientific, Inc. ("Core") in which Core will host and operate Greenidge-owned bitcoin miners at its facilities (the “Core Hosting Agreement”, and together with the NYDIG Hosting Agreements and the Conifex Hosting Agreement, the “Hosting Agreements”). In addition, the Company installed approximately 1,500 additional company-owned miners at its existing facilities in Dresden, New York. The Company believes that the installation of these miners at Conifex and Core facilities along with those miners at its own facilities will improve the Company's profits and liquidity during the remainder of 2023 and beyond.
Despite these improvements to the Company's financial condition, Greenidge management expects that it will require additional capital in order to fund the Company’s expenses and to support the Company’s near-term working capital needs and remaining debt servicing requirements. TheseManagement continues to assess different options to improve its liquidity which include, but are not limited to:
•selling or monetizing certain assets, including but not limited to sales of additional miners, sales of surplus mining infrastructure equipment, or sales of unannounced and undeveloped locations the Company was evaluating for expansion;
•issuances of equity, including but not limited to issuances under the 2022Equity Purchase Agreement (as defined in Note 9, Stockholders' Equity) andand/or the ATM Agreement (as defined in Note 9, Stockholders' Equity);Agreement.
•migrating certaina sale of itsthe Company's remaining real estate in South Carolina and/or sale of the remaining miner infrastructure equipment to lower cost locations; andinventory, which was not used in the South Carolina expansion.
•negotiating with lenders to modify the terms of certain of the Company’s existing financings, which could result in various modifications, including but not limited to, the modification of interest rates and/or debt amortization, assignment of collateral and changes to the Company's business model.
On March 18, 2022, Greenidge issued a secured promissory note, as borrower, in favor of B. Riley Commercial Capital, LLC, as noteholder (the "Noteholder"), evidencing a $26.5 million aggregate principal amount loan by the Noteholder to Greenidge (the "Secured Promissory Note"). In the Company's efforts to further improve liquidity, Greenidge and the Noteholder amended the Secured Promissory Note on August 10, 2022. The amendment extended the maturity to June 2023, reduced scheduled monthly amortization payments and reduced mandatory prepayments.
The Company has received proceeds of $59.8 million since October 2021 from sales of common stock under the 2021 Purchase Agreement (as defined in Note 9, Stockholders' Equity) and the 2022 Purchase Agreement (as defined in Note 9, Stockholders' Equity), of which $2.5 million of proceeds, net of discounts, was received during the three months ended September 30, 2022. In September 2022, Greenidge entered into an ATM Agreement (as defined in Note 9, Stockholders' Equity), and since September 30, 2022 through November 11, 2022, the Company received proceeds of $1.6 million from sales of common stock under the ATM Agreement.
The Company sold assets, including certain miners and other assets during the nine months ended September 30, 2022 for proceeds of $4.8 million; however, demand for miners has continued to decline during the third quarter of 2022.
The Company anticipatesestimates that existingits cash resources will be depleted by the end of the first quarter of 2024. The Company's estimate of cash resources available to the Company for the next 12 months is dependent on completion of certain actions, including the completion of the sale of the South Carolina real estate, a sale of remaining equipment inventory, or obtaining additional short-term outside financing; as well as bitcoin prices and blockchain difficulty levels similar to those existing as of the filing of this Quarterly Report on Form 10-Q and energy prices similar to the those experienced in the third quarter of 2023. Depending on its assumptions regardingWhile bitcoin prices have begun to recover during the timing and ability to achieve more normalized levelsfirst nine months of operating revenue,2023 from the estimated amount of required liquidity will vary significantly. Similarly,significant declines experienced in 2022, management cannot predict when or if bitcoin prices will recover to priorsufficient levels for a sustained period of time, or whenthe volatility of energy costs may decrease.costs. While the Company continues to work to implement the options to improve liquidity, there can be no assurance that these efforts will be successful.
Management's ability to successfully implement these optionssuccessful and the Company's liquidity could be negatively impacted by itemsfactors outside of its control, in particular, significant decreases in the price of bitcoin, regulatory changes concerning cryptocurrency, increases in energy costs or other macroeconomic conditions and other matters identified in Part I, Item 1A "Risk Factors" of ourin the Company's Annual Report on Form 10-K for the year ended December 31, 20212022 and Part II, Item 1A "Risk Factors" ofin this Quarterly Report on Form 10-Q. Given the lack of improvement in the above mentioned factors in the third quarter of 2022, there isthis uncertainty regarding the Company’sCompany's financial condition andover the next 12 months from the date these financial statements were issued, the Company has concluded that there is substantial doubt about its ability to continue as a going concern for a reasonable period of time.
Restricted Cash
The Company has agreed to certain restrictions on $10.5 million of cash received associated with certain financings made during the three months ended September 30, 2022. The Company agreed to certain restrictions associated with this cash which is classified as restricted as of September 30, 2022.
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Reclassifications
Certain prior year amounts have been reclassified to conform to the current period presentation.
Recent Accounting Pronouncements, Adopted
In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. As an emerging growth company, the Company has elected to adopt this pronouncement following the effective date for private companies beginning with periods beginning after December 15, 2021. The Company adopted this standard on January 1, 2022, and the adoption did not materially impact the Company's condensed consolidated financial statements.
3. MERGER WITH SUPPORT.COM
As described in Note 1, on September 14, 2021, Greenidge and Support.com combined their respective businesses through an all-stock merger transaction where Support.com became a wholly owned subsidiary of Greenidge. The Merger has been accounted for as a business combination using the acquisition method of accounting in accordance with the provisions of FASB ASC 805, Business Combinations (“ASC 805”). Greenidge was determined to be the acquiring company for accounting purposes.
Results of Support.com Operations Since the Merger
For the three months ended September 30, 2022, the acquired Support.com business contributed $7.5 million in revenue and $1.0 million of operating income, which includes approximately $0.2 million of amortization expenses of acquired intangible assets. For the nine months ended September 30, 2022, the acquired Support.com business contributed $24.4 million in revenue and $4.3 million of operating income, which includes approximately $0.7 million of amortization expenses of acquired intangible assets.
Supplemental Pro Forma Financial Information
In accordance with ASC 805, the following supplemental unaudited pro forma information gives effect to the Merger as if it had occurred on January 1, 2021. The unaudited pro forma financial information reflects certainstatements do not include any adjustments related to the acquisition, such as:
•Conforming the accounting policies of Support.com to those applied by Greenidge;
•Recording certain incremental expenses resulting from purchase accounting adjustments, such as amortization expense in connection with fair value adjustments to intangible assets; and
•Recording the related tax effects of pro forma adjustments.
$ in thousandsThree Months Ended
September 30, 2021		Nine Months Ended
September 30, 2021
Revenues$42,448 $87,830 
Net loss$(11,783)$(12,602)
The pro forma results for three and nine months ended September 30, 2021 include $30.0 million and $32.4 million, respectively, of transaction costs for both Greenidge and Support.com $24.5 million and $26.9 million after tax, respectively), such as advisor fees, legal and accounting expenses. These costs will not affect the combined company’s statement of operations beyond 12 months after the closing date, September 14, 2021.
The unaudited pro forma financial information should not be relied upon as being indicative of the historical results that would have been obtained if the Merger had actually occurred on that date, nor the results of operations of the Company in the future.
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4. SEGMENT INFORMATION
Effective September 14, 2021, following the completion of the Merger (see Notes 1 and 3), Support.com began operating within the Company as a separate operating and reporting segment; therefore, Greenidge has two operating and reporting segments since the Merger: (i) Cryptocurrency Datacenter and Power Generation and (ii) Support Services.
The Cryptocurrency Datacenter and Power Generation segment generates revenue primarily by earning bitcoin, with miners that are owned by the Company, as rewards and transaction fees for supporting the global bitcoin network. The Cryptocurrency Datacenter and Power Generation segment also sells surplus electricity generated by its power plant, and not consumed in cryptocurrency datacenter operations, to the NYISO power grid at prices set on a daily basis through the NYISO wholesale market. In addition, the Company receives revenuesmight result from the saleoutcome of its capacity and ancillary services in the NYISO wholesale market. The Cryptocurrency Datacenter and Power Generation segment operates in the United States.
The Support Services segment provides solutions and technical programs to customers delivered by home-based employees. The Support Services segment provides customer service, sales support, and technical support primarily to large corporations, businesses and professional services organizations. The Support Services segment also earns revenues for end-user software products provided through direct customer downloads and sales via partners. The Support Services segment operates primarily in the United States, but also has employees located in Philippines, India, Mexico, Colombia and Canada, including those staff providing support services.
The Company’s measure of profit or loss for segment reporting is income (loss) before income taxes, interest and depreciation and amortization and adjusted for share based compensation and excluding items not indicative of ongoing business trends (referred to as “Segment Adjusted EBITDA”). This is the measure used by the Company's Chief Operating Decision Maker to assess performance and allocate resources.
The table below presents information about reportable segments for the three and nine months ended September 30, 2022 and 2021, respectively:
Three Months Ended September 30,Nine Months Ended September 30,
$ in thousands2022202120222021
Revenues:
Cryptocurrency Datacenter and Power Generation$21,885 $34,233 $73,966 $61,472 
Support Services7,474 1,521 24,387 1,521 
Total Revenues$29,359 $35,754 $98,353 $62,993 
    
Segment Adjusted EBITDA (loss)    
Cryptocurrency Datacenter and Power Generation$(3,669)$20,973 $3,886 $33,464 
Support Services1,381 204 5,282 204 
Total Segments Adjusted EBITDA (loss)$(2,288)$21,177 $9,168 $33,668 
this uncertainty.
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Revenue Recognition

Revenue From Contracts With Customer - Hosting

On January 30, 2023, Greenidge entered into the NYDIG Hosting Agreements, with Greenidge operating miners owned by NYDIG affiliates. Under these agreements, the Company agreed to host, power and provide technical support services, and other related services, to NYDIG affiliates’ mining equipment at certain Greenidge facilities for a term of five years. The terms of such arrangements requires NYDIG affiliates to pay a reimbursement fee that covers the cost of power and direct costs associated with management of the mining facilities, a hosting fee as well as a gross profit-sharing arrangement. Under the NYDIG Hosting Agreements, NYDIG affiliates are required to provide Greenidge an upfront security deposit, pay a configuration fee for the setup of new or relocated miners, and pay for repairs and parts consumed in non-routine maintenance (i.e., units that are out of service for more than 12 hours).

Datacenter Hosting Revenue

The Company generates revenue from contracts with customers from providing hosting services to a single third-party customer. Hosting revenue is recognized as services are performed on a variable basis. The Company recognizes variable hosting revenue each month as the uncertainty related to the consideration is resolved, hosting services are provided to its customer, and its customer utilizes the hosting service (the customer simultaneously receives and consumes the benefits of the Company's performance). The Company's performance obligation related to these services is satisfied over time. The Company recognizes revenue for services that are performed on a consumption basis (the amount of electricity utilized by the customer) as well as through a fixed fee that is earned monthly and a profit sharing component based on the net proceeds earned by the customer in the month from bitcoin mining activities. The Company bills its customer at the beginning of each month based on the anticipated consumption under the contract. Invoices are collected in the month of invoicing under the terms of the contract. The Company recognizes revenue based on actual consumption in the period and invoices adjustments in subsequent periods or retains credits toward future consumption.
Cryptocurrency Mining Revenue
Greenidge has entered into digital asset mining pools by executing contracts with the mining pool operators to provide computing power to the mining pool. The contracts are terminable at any time at no cost by either party and Greenidge’s enforceable right to compensation begins only when, and lasts as long as, Greenidge provides computing power to the mining pool operator. In addition,exchange for providing computing power, Greenidge is entitled to a fractional share of the cryptocurrency award the mining pool operator theoretically receives less digital asset transaction fees to the mining pool operator. The agreements entered into with the pool operators payout based on a Full-Pay-Per-Share payout formula, which is based on a conceptual formula that calculates the hash rate provided by Greenidge to the mining pool as a percentage of total network hash rate and other inputs. Under this payout formula, Greenidge is entitled to consideration upon the provision of computing power to the pool even if a block is not successfully placed by the pool operator. Revenue is measured as the value of the fractional share of the cryptocurrency award received from the pool operator, which has been reduced by the transaction fee retained by the pool operator.
Providing computing power in digital asset transaction verification services is an output of Greenidge’s ordinary activities. The provision of such computing power is the only performance obligation in Greenidge’s contracts with mining pool operators. The cryptocurrency that Greenidge receives as transaction consideration is noncash consideration, which Greenidge measures at fair value on the date received at the liquidation price received in the sale of the bitcoin reward, which is not materially different than the fair value at the contract inception or the time Greenidge has earned the award from the pools. The awards are received each day for the previous day's revenue and are automatically sold shortly after receipt. The consideration is all variable based on the amount of computing power provided by Greenidge and the total network hash rate and it is probable that a significant reversal of the consideration will not occur.
Pool fees paid by miners to pooling operators are based on a fixed percentage of the theoretical bitcoin block reward and network transaction fees received by miners. Pooling fees are netted against daily bitcoin payouts. Greenidge does not expect any material future changes in pool fee percentages paid to pooling operators.
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Digital Assets
Digital assets, primarily consisting of bitcoin, are included in current assets in the accompanying consolidated balance sheets. Digital assets are classified as indefinite-lived intangible assets in accordance with ASC 350, Intangibles – Goodwill and Other, and are accounted for in connection with Greenidge’s revenue recognition policy. Digital assets held are considered an intangible asset with an indefinite useful life, which is not amortized but assessed for impairment annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived asset is impaired.
The Company performs an analysis each period to identify whether events or changes in circumstances, principally decreases in the quoted prices on principal markets, indicate that it is more likely than not that its digital assets are impaired. Digital assets are considered impaired if the carrying value is greater than the lowest daily quoted prices at any time during the period. For quoted prices of bitcoin, the Company uses a source that publishes daily cryptocurrency trading metrics from information from multiple exchanges and uses an algorithm that factors the confidence from the distribution of prices reported by the exchanges. Subsequent reversal of impairment losses is not permitted. There were no impairments recorded during 2023. The Company assessed its digital assets for impairment, recorded an impairment of $0.1 million during the three and six months ended June 30, 2022, which is included in Other income, net on the consolidated statements of operations. The Company no longer holds bitcoin assets in custody wallets. As of September 30, 2022, the Company’s digital assets consisted of approximately 29.0 bitcoins.
The Company considers the conversion of digital assets into U.S. dollars as a part of its normal operating activities and includes the impact of that conversion in Net cash flow (used for) provided by operating activities from continuing operations on the Consolidated Statements of Cash Flows.
Digital Assets at December 31, 2022348 
Revenues from digital asset production17,033
Sale of digital assets(17,381)
Digital assets at September 30, 2023— 

Recent Accounting Pronouncements, Adopted
There were not any recently adopted or newly issued accounting pronouncements, that have had, or are expected to have, a material impact on the Company's condensed consolidated financial statements and disclosures.

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3. ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS

A business is classified as held for sale when management having the authority to approve the action commits to a plan to sell or exit the business, the sale or exit is probable to occur during the next 12 months at a price or cost that is reasonable in relation to its current fair value and certain other criteria are met. A business classified as held for sale is recorded at the lower of its carrying amount or estimated fair value less cost to sell. When the carrying amount of the business exceeds its estimated fair value less cost to sell, a loss is recognized and updated each reporting period as appropriate. A business classified as held for sale should be reported in discontinued operations if the disposal represents a strategic shift that has or will have a major effect on a reporting entity's operations and financial results.
Support.com
The contract for Support.com's largest customer was not renewed upon expiration on December 31, 2022. As a result of this material change in the business, management and the board of directors made the determination to consider various alternatives for Support.com, including the disposition of assets. At December 31, 2022, the Company classified the Support.com business as held for sale and discontinued operations in the condensed consolidated financial statements as a result of its strategic shift to strictly focus on its cryptocurrency datacenter and power generation operations.
In January 2023, Greenidge completed the sale of a portion of the assets of Support.com for net proceeds of approximately $2.6 million. In June 2023, the Company entered into a purchase and sale agreements with third parties in order to sell certain remaining assets and liabilities, including the transfer of remaining customer contracts, for net proceeds of approximately $0.4 million. The Company has ended all Support.com operations as of September 30, 2023; therefore, the remaining assets and liabilities of Support.com have been presented as current at September 30, 2023 and December 31, 2022. The remaining assets and liabilities consist primarily of remaining receivables and refundable deposits, payables and accrued expenses associated with the closing of operations and foreign tax liabilities.
Major classes of assets and liabilities consist of the following:
$ in thousandsSeptember 30, 2023December 31, 2022
Assets:
Accounts receivable$472 $3,996 
Prepaid expenses and other current assets178 1,253 
Current assets held for sale650 5,249 
Property and equipment, net— 743 
Other assets457 481 
Long-term assets held for sale457 1,224 
Loss on classification to held for sale(600)— 
Assets held for sale507 6,473 
Liabilities:
Accounts payable64 191 
Accrued expenses803 3,351 
Current liabilities held for sale867 3,542 
Other long-term liabilities— 432 
Long-term liabilities held for sale— 432 
Liabilities held for sale$867 $3,974 



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Financial results from discontinued operations consist of the following:

Three Months Ended
September 30,		Nine Months Ended
September 30,
$ in thousands2023202220232022
Revenue$378 $7,474 $4,223 $24,387 
Cost of revenue - services and other (exclusive of depreciation and amortization)(957)(3,660)(4,425)(11,304)
Depreciation and amortization— (324)— (979)
Selling, general and administrative(1,353)(2,451)(3,265)(7,831)
Merger and other costs(154)(242)(684)(940)
Gain on asset disposal— — 4,162 — 
Loss on assets classified as held for sale1,135 — (600)— 
Other (loss) income, net(127)18 (107)36 
Pretax income from discontinued operations(1,078)815 (696)3,369 
Provision for income taxes— 79 — 162 
(Loss) income from discontinued operations, net of tax$(1,078)$736 $(696)$3,207 

The Company’s effective income tax rate from discontinued operations for the three months ended September 30, 2023 and 2022 was 0% and 9.7%, respectively, and for the nine months ended September 30, 2023 and 2022 was 0% and 4.8%, respectively, primarily due to foreign rate differences.

South Carolina Datacenter
In August 2023, in connection with a non-binding term sheet that the Company entered into with NYDIG in June to effect a deleveraging transaction, the Company completed an electrical upgrade at its South Carolina facility increasing the capacity to 44 MW. Upon completion of this expansion, on August 10, 2023, the Company and NYDIG amended the NYDIG Hosting Agreements to increase the number of miners being hosted by Greenidge utilizing all of the expansion. The NYDIG Hosting Agreements were amended in furtherance of the broader transaction contemplated by the non-binding term sheet pursuant to which the Company would sell to NYDIG all of the upgraded mining facilities at the South Carolina site and would also subdivide and sell to NYDIG the approximately 22 acres of land on which the facilities are located. The South Carolina Datacenter long-lived assets are presented as current assets held for sale as of September 30, 2023. The Company completed the sale on November 9, 2023 (see Note 14, Subsequent Events).

The table below provides a reconciliationsummary of the totalProperty Plant & Equipment, net categories of the Segments Adjusted EBITDA to the consolidated (loss) income before income taxes:South Carolina Assets & Liabilities Held for Sale:
Three Months Ended September 30,Nine Months Ended September 30,
$ in thousands2022202120222021
Total Segments Adjusted EBITDA (loss)$(2,288)$21,177 $9,168 $33,668 
Depreciation and amortization(13,835)(2,667)(22,680)(5,531)
Stock-based compensation(361)(411)(1,029)(1,474)
Merger and other costs(242)(29,847)(940)(31,095)
Expansion costs(183)(128)(2,375)(128)
Interest expense, net(5,430)(1,009)(15,693)(1,399)
Loss on sale of assets(759)— (130)— 
Long-lived asset impairment— — (71,500)— 
Remeasurement of environmental liability— — (11,109)— 
Consolidated loss before income taxes$(23,098)$(12,885)$(116,288)$(5,959)

$ in thousandsSeptember 30, 2023
Miner facility infrastructure$18,320 
Land975
Long-term Assets Held for Sale$19,295 
Accounts Payable$865 
Current Liabilities Held for Sale$865 
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5.


4. PROPERTY AND EQUIPMENT
Property and equipment, net consisted of the following at September 30, 20222023 and December 31, 2021:2022:
$ in thousands$ in thousandsEstimated Useful
Lives		September 30, 2022December 31, 2021$ in thousandsEstimated Useful
Lives		September 30, 2023December 31, 2022
Plant infrastructurePlant infrastructure10 years$10,226 $34,725 Plant infrastructure10 years$729 $— 
MinersMiners3 years176,309 48,121 Miners3 years$32,195 $81,979 
Miner facility infrastructureMiner facility infrastructure10 years32,368 15,143 Miner facility infrastructure10 years8,154 14,203 
LandLandN/A8,460 8,460 LandN/A7,485 8,460 
EquipmentEquipment5 years1,012 1,660 Equipment5 years45 45 
Software3 years636 636 
Coal ash impoundment4 years— 2,410 
Construction in processConstruction in processN/A26,076 25,856 Construction in processN/A6,509 18,349 
Miner depositsMiner depositsN/A27,281 98,110 Miner depositsN/A— 7,381 
282,368 235,121 55,117 130,417 
Less: Accumulated depreciationLess: Accumulated depreciation(36,297)(18,030)Less: Accumulated depreciation(7,340)— 
$246,071 $217,091 $47,777 $130,417 
The Company has reevaluated the useful lives of the assets and adjusted the lives of the miners from 5 years to 3 years and the lives of plant infrastructure from 15 - 39 years to 10 years effective July 1, 2022. Total depreciation expense was $13.6$3.4 million and $2.7$13.5 million for the three months ended September 30, 20222023 and 2021,2022, respectively and $22.0$10.4 million and $5.5$21.7 million for the nine months ended September 30, 2023 and 2022, respectively.
On January 30, 2023, Greenidge entered into an agreement regarding its 2021 and 2021, respectively.2022 Master Equipment Finance Agreements with NYDIG. During the nine months ended September 30, 2023, the Company transferred ownership of bitcoin mining equipment with net book value of $50.0 million and miner deposits of $7.4 million that remained accrued to Greenidge for previous purchases of mining equipment with a bitcoin miner manufacturer and the related debt was canceled pursuant to a debt settlement agreement entered into with NYDIG. There was no gain or loss recognized on the sales as these assets. The Company recognized a gain on the sale of assets of $1.8 million, which primarily related to the sale of bitcoin miner manufacturer coupons, including $1.2 million that were transferred as part of the debt restructuring agreement with NYDIG.

Impairment

The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. To determine recoverability of a long-lived asset, management evaluates whether the estimated future undiscounted net cash flows, based on prevailing market conditions, from the asset are less than its carrying amount. If impairment is indicated, the long-lived asset is written down to fair value.
As
The Company evaluated the recoverability of the South Carolina facility classified as Held for Sale (see note 3, Assets Held for Sale and Discontinued Operations) as of September 30, 2023. The Company is evaluating future uses of the remaining real estate assets in South Carolina, which includes the land and the original building which was classified as construction in process as it was not used in cryptocurrency mining. The impairment assessment was performed using a market approach. An impairment charge of $4 million was recorded for the three month period ended September 30, 2023, which is the remaining value of the building which was determined to no longer be recoverable.

During the nine months ended September 30, 2022, as a result of the significant reduction in the price of bitcoin and increased energy prices during the nine months ended September 30, 2022, the Company recognized aCompany’s results of operations, as well as income expectations, were negatively impacted resulting in the recognition of noncash impairment chargecharges of $71.5 million for the assets associated with the Cryptocurrency Datacenter and Power Generation segment to reduce the net book value of the long-lived assets to fair value.

Fair value was determined utilizing the market approach, relying on the guideline public company method. Our guideline public company method incorporates revenue and hash rate multiples from other publicly traded companies with operations and other characteristics similar to Greenidge.

The table below provides a summary of the impairment by category of asset for the nine months ended September 30, 2022:
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to fair value. Fair value was determined utilizing the market approach. The excess of the book value over the estimated fair value was allocated to the long-lived assets of the Cryptocurrency and Power Generation segment.
$ in thousands
Land$5,000 
Plant infrastructure24,400 
Miners20,945 
Miner Facility Infrastructure990 
Equipment190 
Software70 
Coal ash impoundment925 
Construction in process18,980 
Total$71,500 
6. INTANGIBLE ASSETS
As described in Notes 1 and 3, on September 14, 2021, Greenidge and Support.com combined their respective businesses through an all-stock merger transaction that was accounted for as a business combination in accordance with ASC 805. Prior to the Merger, Greenidge did not have any intangible assets.
The following is a summary of finite-lived intangible assets:
$ in thousands
As of September 30, 2022Intangible AssetsAccumulated AmortizationIntangible Assets, Net
Customer relationships$3,320 $(867)$2,453 
Tradename490 (102)388 
Total$3,810 $(969)$2,841 
As of December 31, 2021Intangible AssetsAccumulated AmortizationIntangible Assets, Net
Customer relationships$3,320 $(244)$3,076 
Tradename490 (29)461 
Total$3,810 $(273)$3,537 
Amortization expense was $0.2 million and $0.7 million for the three and nine months ended September 30, 2022, respectively. There was less than $0.1 million of amortization expense for both the three and nine months ended September 30, 2021.
Future amortization expense is as follows:
$ in thousandsAmortization
2022 (for the remainder of)$232 
2023928 
2024928 
2025684 
Thereafter69 
Total$2,841 
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7.
5. DEBT
The Company has entered into equipment finance agreements that are secured by the purchased miner equipment. These agreements generally require monthly payments of principal, interest and a risk premium fee. The following table provides information on the equipment financingCompany's debt agreements:
$ in thousandsBalance as of:
NoteLoan DateMaturity DateInterest
Rate		Amount FinancedSeptember 30, 2022December 31, 2021
Equipment Financings:
ADecember 2020June 202217.0 %$4,482 $— $1,245 
BDecember 2020June 202217.0 %428 — 95 
CMarch 2021November 202217.0 %2,229 248 1,362 
DApril 2021December 202217.0 %4,012 669 2,674 
E - HMay 2021October 202315.0 %15,724 12,235 15,513 
IJuly 2021January 202317.0 %4,457 1,238 3,468 
JJuly 2021March 202317.0 %2,717 604 1,962 
KOctober 2021June 202317.0 %2,223 864 1,976 
LMarch 2022April 202413.0 %81,375 74,690 — 
Bonds PayableOctober 2021/December 2021October 20268.5 %72,200 72,200 72,200 
Secured Promissory NoteMarch 2022June 20237.5 %26,500 13,410 — 
Total debt176,158 100,495 
Less: Debt discount and issuance costs(6,425)(5,667)
Total debt at book value169,733 94,828 
Less: Current portion (73,218)(19,577)
Long-term debt, net of current portion and deferred financing fees $96,515 $75,251 
$ in thousandsBalance as of:
NoteLoan DateMaturity DateInterest
Rate		Amount FinancedSeptember 30, 2023December 31, 2022
Equipment Financings:
A-DMay 2021October 202315.0 %$15,724 $— $10,478 
EJuly 2021January 202317.0 %$4,457 — 495 
FMarch 2022April 202413.0 %$81,375 — 63,890 
Senior Unsecured NotesOctober 2021/December 2021October 20268.5 %$72,200 72,200 72,200 
Secured Promissory NoteMarch 2022November 20237.5 %$26,500 4,116 10,430 
Senior Secured LoanJanuary 2023January 202515.0 %$17,322 17,689 — 
Total Debt94,005 157,493 
Less: Debt discount and issue costs(4,555)(5,747)
Total debt at book value89,450 151,746 
Less: Current portion(2,365)(67,161)
Long-term debt, net of current portion and deferred financing fees$87,085 $84,585 
The Company incurred interest expense of $5.4$3.0 million and $1.0$5.4 million during the three months ended September 30, 20222023 and 2021,2022, respectively, and $15.7$9.7 million and $1.4$15.7 million during the nine months ended September 30, 20222023 and 2021,2022, respectively, under the terms of these financings.
Minimum future principal payments on debt as of September 30, 2022 were as follows:
$ in thousands
Remainder of 2022$20,404 
202366,479 
202417,075 
2025— 
202672,200 
Total$176,158 
Master Equipment Financing AgreementSenior Secured Loan
On March 21, 2022, Greenidge, as guarantor, together with its wholly-owned subsidiaries GTX Gen 1 Collateral LLC, GNY Collateral LLC and GSC Collateral LLC (collectively, the “Borrowers”"Borrowers"), entered into a Master Equipment Finance Agreement (the “NYDIG"NYDIG Financing Agreement”Agreement") with NYDIG, ABL LLC ("NYDIG"), as lender, whereby NYDIG agreed to lend to the Borrowers approximately $81 million under loan schedules that were partially funded for approximately $54 million in March 2022, with additional funding of $17 million through September 30,December 31, 2022, to finance the acquisition of certain miners and related equipment (the “Financed Equipment”"Financed Equipment"). The Borrowers' obligations under the NYDIG Financing
14


Agreement arewere fully and unconditionally guaranteed by Greenidge. Outstanding borrowings under the NYDIG Financing Agreement arewere secured by all assets of the Borrowers, including without limitation, the Financed Equipment and proceeds thereof (including
17


(including bitcoin). The partially funded loan schedules bearbore interest at a rate of 13% per annum and havehad terms of twenty-five25 months. Certain loan schedules arewere interest-only for a specified period and otherwise payments on loan schedules includeincluded both an interest and principal payment. Pursuant to the terms of the NYDIG Financing Agreement, the Borrowers and with certain exceptions, the Company, will bewere subject to certain covenants and restrictive provisions which, will, among other things: limitthings limited: the Borrowers’ ability to incur additional indebtedness for borrowed money; limit additional liens on the collateral or the equity interests of any of the Borrowers; limit consolidations or mergers including the Borrowers or the Company unless such would not constitute a Change in Control (as defined therein); limit disposing of the collateral or any portion of the collateral with certain exceptions; limit the Borrowers’ ability to make certain restricted payments and investments; and limit the ability to create certain direct obligations of the Borrowers or the Company unless the NYDIG Financing Agreement is at least pari passu in right of payment; each of which arewere subject to customary and usual exceptions and baskets. The loans under the NYDIG Financing Agreement cannotcould not be voluntarily partially prepaid, but maycould be prepaid in whole subject to a make-whole calculation. The NYDIG Financing Agreement is denoted in the table above as "Equipment Financings: L.A - D and F."
At December 31, 2022, Greenidge owed a payment of principal and interest in the amount of approximately $1.0 million due on December 25, 2022. Prior to defaulting on any payments, the Company and NYDIG entered into a waiver that stated both parties agreed that failure to pay the December 25, 2022 and the January 10, 2023 payments when due would not be an event of default if payment was made in full by January 27, 2023.
On January 30, 2023, the Company concurrently entered into a debt settlement agreement (the "Debt Settlement Agreement"), the Asset Purchase Agreement (the "NYDIG Purchase Agreement"), and a Senior Secured Loan Agreement (the "Senior Secured Loan") with NYDIG in order to refinance and replace certain outstanding indebtedness under certain Master Equipment Financing Agreements and related loan documentation (the "MEFAs"). The $75.8 million in debt previously outstanding under the MEFAs was reduced by $58.5 million pursuant to the Debt Settlement Agreement and the remaining $17.3 million outstanding under the MEFAs was refinanced. In exchange for this reduction in debt, the Company transferred under the NYDIG Purchase Agreement $50.0 million of bitcoin miners to NYDIG and $8.5 million of miner deposits and coupons that remained accrued to Greenidge for previous purchases of mining equipment with a bitcoin miner manufacturer. As part of the Debt Settlement Agreement, the Company entered into the Senior Secured Loan Agreement, as borrower, with NYDIG, as administrative agent and as collateral agent and is denoted in the table above as "Senior Secured Loan".
The Company evaluated the amendment under ASC 470-50, "Debt Modification and Extinguishment", and concluded that the updated terms qualified as a debt modification; therefore, no gain or loss was recorded.
The initial principal balance under the Secured Loan (the "Refinanced Amount") was approximately $17.3 million. Interest is payable monthly at an interest rate of 15% per annum, computed on the basis of a 360 day year of twelve 30-day months through January 30, 2025. The Secured Loan includes clauses requiring the Company to maintain cash balances in excess of $10 million, and failure to maintain this balance may be considered an event of default by the lender. The Secured Loan contains customary representations, warranties and covenants including restrictions on indebtedness, liens, restricted payments and dividend, investments, asset sales and similar covenants and contains customary events of default. In addition, the Secured Loan allowed for a voluntary prepayment of the loan in kind of approximately $10.2 million by transferring ownership of certain mining infrastructure assets to NYDIG if NYDIG entered into a binding agreement by April 30, 2023, facilitated by Greenidge, securing rights to a site for a future mining facility. The Company was informed on April 30, 2023 that NYDIG would not be entering into the binding agreement for the future mining facility and that portion of the debt remained outstanding, and as a result, accrued interest of approximately $0.4 million was capitalized into the principal balance at April 30, 2023.
In order to facilitate the transactions contemplated by a non-binding term sheet associated with the sale of the Company's South Carolina mining site to NYDIG, on August 11, 2023, NYDIG granted a limited waiver (the "Limited Waiver") to the Company with respect to reducing the Company’s minimum cash requirement from $10 million to $6 million and agreed to amend the NYDIG Senior Secured Loan on August 21, 2023 to extend the waiver of the minimum cash requirement as well as to suspend interest and principal payments due under both the NYDIG Senior Loan and the B Riley Commercial Note until the earlier of (i) the completion of the transactions contemplated by the non-binding term sheet, or (ii) December 29, 2023.
On November 9, 2023, the Company completed the sale of the South Carolina mining site to NYDIG which resulted in the settlement of the Senior Secured Loan as part of the consideration received in the sale. This settlement resulted in the
18


termination of all liens, mortgages and security interests previously securing the loan, as well as all related covenants. See note 14, Subsequent Events for further details.
Secured Promissory Note
As disclosed in Note 2, onOn March 18, 2022, Greenidge issued the Secured Promissory Notea secured promissory note, as borrower, in favor of the Noteholder.B. Riley Commercial as noteholder (the "Noteholder"), evidencing a $26.5 million aggregate principal amount loan by B. Riley Commercial to Greenidge (the "Secured Promissory Note"). The Secured Promissory Note is guaranteed by certain of Greenidge’s wholly-owned subsidiaries: Greenidge South Carolina LLC, GSC RE LLC and 300 Jones Road LLC. The loan outstanding under the Secured Promissory Note originally bore interest at a rate of 6% per annum and originally matured on July 20, 2022, subject to up to five 30-day extensions, through December 2022, that may be electedcould have been elected by Greenidge provided no Event of Default (as defined therein) has occurred and is continuing and Greenidge pays an Exit Fee (as defined therein) to the Noteholder.B. Riley Commercial. Pursuant to the terms of the Secured Promissory Note, Greenidge and its subsidiaries will bewere subject to certain covenants and restrictive provisions which will, among other things, limit their ability to incur additional indebtedness for borrowed money or additional liens other than debt and liens permitted pursuant to the Secured Promissory Note; consolidate or merge unless Greenidge survives; or transfer all or substantially all of their assets; make certain restricted payments or investments; have a Change of Control (as defined therein); modify certain material agreements; and engage in certain types of transactions with affiliates; each of which are subject to customary and usual exceptions and baskets. The Secured Promissory Note is secured by a first priority mortgage lien on certain real property together with related improvements, fixtures and personal property located at Greenidge's South Carolina Facility. Greenidge’s obligations under the Secured Promissory Note may be prepaid in whole or in part without penalties or fees.
On August 10, 2022, Greenidge and the NoteholderB. Riley Commercial agreed to amend the terms of the Secured Promissory Note, by extending the maturity to June 2023, reducing scheduled monthly amortization payments and revising the interest rate to 7.5%. The Exit Fees (as defined therein) associated with the four 30-day extensions subsequent to August 10, 2022, were accelerated and added to the principal balance as of that date. The principal balance following the amendment was $16.4 million as of August 10, 2022. Additionally mandatory repayments of the Secured Promissory Note were revised, such that 65% of the net cash proceeds received from sales of stock under the 2022Equity Purchase Agreement shallwould be paid to NoteholderB. Riley Commercial to repay the Secured Promissory Note. The Company evaluated the amendment under ASC 470-50, "Debt Modification and Extinguishment", and concluded that the updated terms qualified as a debt modification, and therefore, no gain or loss was recorded.
On January 13, 2023, Greenidge and B. Riley Commercial entered into a Waiver and Acknowledgement Letter (the "B Riley Waiver") regarding the terms of the Amended and Restated Bridge Promissory Note dated August 10, 2022 executed by Greenidge in favor of B. Riley Commercial. Under the B Riley Waiver, B. Riley Commercial agreed that Greenidge’s failure to pay the approximately $1.5 million payment of principal and interest due under the BRCC Note on December 20, 2022 would not be an event of default if that payment were made in full by the earlier of January 20, 2023 or the date that Greenidge and B. Riley Commercial enter into a mutually satisfactory amendment to the BRCC Note addressing, among other things, future amortization requirements under the Secured Promissory Note. The waiver left the due dates for other scheduled payments under the BRCC Note unaffected.
On January 30, 2023, Greenidge entered into the Consent and Amendment No. 1 to the Promissory Note (the "B. Riley Amendment") with B. Riley Commercial. The B. Riley Amendment modified the payment dates and principal and interest payment amounts under the Promissory Note, requiring no principal and interest payments until June 2023 and monthly payments thereafter through November 2023. Under the terms of the B. Riley Amendment, each of B. Riley Commercial and Atlas Holdings LLC ("Atlas"), or an affiliate thereof, purchased $1 million of Greenidge’s Class A common stock under the ATM Agreement. B. Riley Commercial purchased common stock on a principal basis at $7.50 per share and Atlas or its affiliate purchased common stock at market prices through B. Riley acting as sales agent. Greenidge also paid a $1 million dollar amendment fee to B. Riley Commercial, payable by the delivery of Greenidge Class A common stock to B. Riley Commercial, as principal under the ATM Agreement, at a price of $7.50 per share. Under the B. Riley Amendment, Greenidge is required to make mandatory monthly debt repayments under the Promissory Note of 15% of the net proceeds of sales of equity, including sales under the ATM Agreement and the equity purchase agreement. The monthly principal amortization payments are $1.5 million beginning June 20, 2023.
The Company evaluated the amendment under ASC 470-50, "Debt Modification and Extinguishment", and concluded that the updated terms qualified as a debt modification, therefore, no gain or loss was recorded.
On July 20, 2023, NYDIG purchased the secured promissory note from B. Riley Commercial. Under the Limited Waiver discussed in the description of the Senior Secured Loan, NYDIG agreed to amend the NYDIG the Secured Promissory Note
19


on or before August 21, 2023 to suspend interest and principal payments due under the B Riley Commercial Note until the earlier of (i) the completion of the transactions contemplated by the non-binding term sheet, or (ii) December 29, 2023.
On November 9, 2023, the Company completed the sale of the South Carolina mining site to NYDIG which resulted in the settlement of the Secured Promissory Note as part of the consideration received in the sale. This settlement resulted in the termination of all liens, mortgages and security interests previously securing the loan, as well as all related covenants. See note 14, Subsequent Events for further details.
Senior Unsecured Notes
During the fourth quarter of 2021, the Company sold $72.2 million of 8.50% Senior Notes due October 2026 (the "Notes") pursuant to the Company's registration statement on Form S-1. Interest on the Notes is payable quarterly in arrears on January 31, April 30, July 31 and October 31 of each year to the holders of record at the close of business on the immediately preceding January 15, April 15, July 15 and October 15, respectively. The Notes are senior unsecured obligations of the Company and rank equal in right of payment with the Company's existing and future senior unsecured indebtedness. The Notes trade on the Nasdaq Global Select Market under the symbol "GREEL."
The Company may redeem the Notes for cash in whole or in part at any time (i) on or after October 31, 2023 and prior to October 31, 2024, at a price equal to 102% of their principal amount, plus accrued and unpaid interest to, but excluding, the date of redemption, (ii) on or after October 31, 2024 and prior to October 31, 2025, at a price equal to 101% of their principal amount, plus accrued and unpaid interest to, but excluding, the date of redemption, and (iii) on or after October 31, 2025 and prior to maturity, at a price equal to 100% of their principal amount, plus accrued and unpaid interest to, but excluding, the date of redemption. In addition, the Company may redeem the Notes, in whole, but not in part, at any time at its option, at a redemption price equal to 100.5% of the principal amount plus accrued and unpaid interest to, but not including, the date of redemption, upon the occurrence of certain change of control events.
Minimum Future Principal Payments
Minimum future principal payments on debt at September 30, 2023 were as follows:
$ in thousands
Remainder of 2023$4,116 
2024— 
202517,689 
202672,200 
2027— 
Total$94,005 
See Note 14, Subsequent Events, for details on the settlement of debt subsequent to September 30, 2023.
Fair Value Disclosure
The notional value and estimated fair value of the Company's debt totaled $176.2$94.0 million and $139.2$38.6 million, respectively at September 30, 2023 and $157.5 million and $88.5 million, respectively at December 31, 2022. The notional value does not include unamortized discounts and debt issuance costs of $6.4$4.6 million and $5.7 million at September 30, 2022.2023 and December 31, 2022, respectively. The estimated fair value of the Bonds Payable, representing the fair value of our 8.50% senior securedunsecured notes due October 2026 was measured using quoted market prices at the reporting date. Such instruments were valued using Level 1 inputs. For the Equipment Financingsequipment financings, senior secured note and Secured Promissory Note, the Company believes the notional values approximate their fair values.
8. RELATED PARTY TRANSACTIONS
Letters of Credit6. EARNINGS PER SHARE
The Company's controlling stockholder, Atlas Holdings LLC ("Atlas"), obtained a letterCompany calculates basic earnings per share by dividing the net income (loss) by the weighted average number of credit from a financial institution inshares of common stock outstanding for the amountperiod. The diluted earnings per share is computed by assuming the exercise, settlement, and vesting of $5.0 million at September 30, 2022, payable toall potential dilutive common stock equivalents outstanding for the New York State Department of Environmentalperiod using the treasury stock method.
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Conservation ("NYSDEC"). This letter of credit guarantees the current valueThe following table sets forth a reconciliation of the Company’s landfill environmental liability (see Note 13).numerator and denominator used to compute basic earnings and diluted per share of common stock.
Atlas also obtained a letter of credit from a financial institution in
Three Months Ended September 30,Nine Months Ended September 30,
$ in thousands, except per share amounts2023202220232022
Numerator
Net loss from continuing operations$(13,161)$(23,913)$(31,756)$(134,695)
(Loss) income from discontinued operations, net of tax(1,078)736 (696)3,207 
Net loss$(14,239)$(23,177)$(32,452)$(131,488)
Denominator
Basic weighted average shares outstanding7,262 4,224 6,341 4,162 
Diluted weighted average shares outstanding7,262 4,224 6,341 4,162 
(Loss) income per basic share:
Loss per basic share from continuing operations$(1.81)$(5.66)$(5.01)$(32.36)
(Loss) income per basic share from discontinued operations(0.15)0.17 (0.11)0.77 
Loss per basic share$(1.96)$(5.49)$(5.12)$(31.59)
(Loss) income per diluted share:
Loss per diluted share from continuing operations$(1.81)$(5.66)$(5.01)$(32.36)
(Loss) income per diluted share from discontinued operations(0.15)0.17 (0.11)0.77 
Loss per diluted share$(1.96)$(5.49)$(5.12)$(31.59)
For the amount of $3.6 million atthree and nine months ended September 30, 2022, payable2023, there was no impact of dilution from any of the outstanding 12,048 RSUs or 359,647 common stock options due to Empire Pipeline Incorporated (“Empire”) in the eventnet loss, since inclusion of any impact from these awards would be anti-dilutive. For the Company should not make contracted payments for costs related to a pipeline interconnection project the Company has entered into with Empire (see Note 13).
Guarantee
An affiliate of Atlas has guaranteed the payment obligation of Greenidge in favor of Emera Energy Services, Inc. ("Emera") under an Energy Management Agreementthree and an ISDA Master Agreement under which Greenidge may enter into various transactions involving the purchase and sale of natural gas, electricity and other commodities with Emera. This guaranty is limited to $1.0 million.
Other
Affiliates of Atlas from time to time incur certain expansion costs for the benefit of Greenidge, which are fully reimbursed by Greenidge. The amount of costs reimbursed by Greenidge during the nine months ended September 30, 2022, there was less than $0.1 million.no impact of dilution from any of the outstanding 48,215 RSUs or 57,056 common stock options due to the net loss, since inclusion of any impact from these awards would be antidilutive.
9. STOCKHOLDERS' EQUITY
Equity Purchase Agreement with B. Riley Principal Capital, LLC
On September 15, 2021, Greenidge entered into a common stock purchase agreement (the “2021 Purchase Agreement”) with B. Riley Principal Capital, LLC (the “Investor”) pursuant to which Greenidge has the right to “put” or sell to the Investor up to $500 million of shares of class A common stock, subject to certain limitations and conditions set forth in the 2021 Purchase Agreement, from time to time during the term of the 2021 Purchase Agreement. The per share purchase price for the shares of class A common stock that Greenidge elected to sell to the Investor pursuant to the 2021 Purchase Agreement were determined by reference to the volume weighted average price of class A common stock during the applicable purchase date on which Greenidge had timely delivered written notice to the Investor directing it to purchase shares under the 2021 Purchase Agreement, less a fixed 5% discount, which was to be increased to a fixed 6% discount at such time that the Company received aggregate cash proceeds of $200 million as payment for all shares of class A common stock purchased by the Investor in all prior sales of class A common stock made under the 2021 Purchase Agreement. The Investor had no obligation to purchase shares pursuant to the 2021 Purchase Agreement to the extent that such purchase would have caused the Investor to own more than 4.99% of the Company’s issued and outstanding shares of class A common stock.
Greenidge and the Investor entered into a mutual termination agreement on April 6, 2022 (the "Mutual Termination"), which became effective immediately upon signing. Prior to the termination, the Company had sold an aggregate of 2,547,500 shares of class A common stock pursuant to the 2021 Purchase Agreement representing proceeds of $54.9 million, net of discounts, under the 2021 Purchase Agreement. The Company did not incur any early termination penalties as a result of the Mutual Termination.
On April 7, 2022, Greenidge entered into a new common stock purchase agreement, as amended by Amendment No. 1 to Common Stock Purchase Agreement, dated as of April 13, 2022 (as amended, the “2022 Purchase Agreement”) with the Investor. Pursuant to the 2022 Purchase Agreement, Greenidge has the right to sell to the Investor up to $500 million in shares of its class A common stock, subject to certain limitations and the satisfaction of specified conditions in the 2022 Purchase Agreement, from time to time over the 24-month period commencing on April 28, 2022.
The per share purchase price for the shares of class A common stock that Greenidge elects to sell to the Investor pursuant to the 2022 Purchase Agreement will be determined by reference to the volume weighted average price of the class A common stock (“VWAP”) during the full primary (or “regular”) trading session on Nasdaq on the applicable purchase date, calculated in accordance with the 2022 Purchase Agreement, or, if the total aggregate number (or “volume”) of class A common stock traded on Nasdaq reaches a certain threshold amount (calculated in accordance with the 2022 Purchase Agreement) prior to the official close of the regular trading session on Nasdaq on such purchase date, then the VWAP will be calculated only for the period beginning at the official open (or “commencement”) of the regular trading session and ending at the time the volume of class A common stock traded on Nasdaq reaches such threshold amount
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(such period for each purchase, the “Purchase Valuation Period”), less a fixed 5% discount to the VWAP for the Purchase Valuation Period, which shall be increased to 6% at such time that Greenidge has received aggregate cash proceeds of $200 million from all prior sales of class A common stock to the Investor under the 2021 Purchase Agreement and the 2022 Purchase Agreement.
The per share purchase price for the shares of class A common stock that Greenidge elects to sell to the Investor in an intraday purchase pursuant to the 2022 Purchase Agreement will be calculated in the same manner as in the case of a regular purchase, provided that the VWAP for such intraday purchase will be measured during the portion of the normal trading hours on Nasdaq on the applicable purchase date that will begin 30 minutes after the latest of (i) the time that the applicable intraday purchase notice is timely received by the Investor, (ii) the time that the Purchase Valuation Period for any prior regular purchase effected on the same purchase date (if any) has ended and (iii) the time that the Intraday Purchase Valuation Period (defined below) for the most recent prior intraday purchase effected on the same purchase date (if any) has ended, and ending at the earlier of (x) the official close of the regular trading session on Nasdaq on such purchase date and (y) the time the volume of shares of class A common stock traded on Nasdaq reaches a certain threshold amount calculated in accordance with the 2022 Purchase Agreement (such period for each intraday purchase, the “Intraday Purchase Valuation Period”), less a fixed 5% discount to the VWAP for the Intraday Purchase Valuation Period, which shall be increased to 6% at such time that Greenidge has received aggregate cash proceeds of $200 million from all prior sales of class A common stock to the Investor under the 2021 Purchase Agreement and the 2022 Purchase Agreement.
In addition, on April 13, 2022, Greenidge entered into Amendment No. 1 to the 2022 Purchase Agreement (the “Amendment”) with the Investor. The Amendment provides for an additional feature that would cause the period used to determine the applicable purchase price to be paid by the Investor for shares elected to be sold by Greenidge to terminate on the applicable purchase date if the trading price of the class A common stock falls below a minimum price threshold. The Amendment also modifies the maximum amount of shares of Greenidge’s class A common stock that Greenidge can elect to sell to the Investor in any single purchase effected by Greenidge.
Under the applicable Nasdaq rules, unless stockholder approval is obtained, Greenidge may not sell more than 19.99% of the total number of shares of its class A common stock and class B common stock issued and outstanding immediately prior to the execution of the 2022 Purchase Agreement, which number of shares shall be reduced on a share-for-share basis by the number of shares of class A common stock that may be aggregated with the transactions contemplated by the 2022 Purchase Agreement under the applicable Nasdaq rules. Sales of common stock pursuant to the 2022 Purchase Agreement, and the timing of any sales, are solely at the option of the Company, and the Company is under no obligation to sell any securities to the Investor under the 2022 Purchase Agreement.
In connection with the 2022 Purchase Agreement, Greenidge entered into a registration rights agreement with the Investor, pursuant to which Greenidge agreed to prepare and file a registration statement registering the resale by the Investor of those shares of Greenidge’s class A common stock to be issued under the 2022 Purchase Agreement. The registration statement became effective on April 28, 2022 (the "Effective Date"), relating to the resale of 5,720,951 shares of Greenidge’s class A common stock in connection with the 2022 Purchase Agreement.
From the Effective Date to September 30, 2022, Greenidge issued 1,599,229 shares of class A common stock to the Investor pursuant to the 2022 Purchase Agreement for aggregate proceeds of $5.0 million, net of discounts.
At The Market Issuance Sales Agreement with B. Riley Securities
On September 19, 2022, as amended on October 3, 2022, Greenidge entered into an at market issuance sales agreement (the "ATM Agreement") with B. Riley Securities, Inc. ("B. Riley") and Northland Securities, Inc. ("Northland"), relating to shares of Greenidge’s class A common stock. Under the ATM Agreement, B. Riley will use its commercially reasonable efforts to sell on Greenidge’s behalf the shares of Greenidge’s class A common stock requested to be sold by Greenidge, consistent with B. Riley’s normal trading and sales practices, under the terms and subject to the conditions set forth in the ATM Agreement. Greenidge has the discretion, subject to market demand, to vary the timing, prices and number of shares sold in accordance with the ATM Agreement. B. Riley may sell the Company’s class A common stock by any method permitted by law deemed to be an “at the market offering” as defined in Rule 415(a)(4) promulgated under the Securities Act. Greenidge will pay B. Riley commissions for its services in acting as sales agent, in an amount equal to up to 5.0% of the gross proceeds of all class A common stock sold through it as sales agent under the ATM Agreement. Pursuant to the registration statement filed registering shares to be sold in accordance with the terms of the ATM Agreement, Greenidge may offer and sell shares of its class A common stock up to a maximum aggregate offering price of $22,800,000.
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From October 1, 2022 through November 11, 2022, Greenidge issued 1,634,964 shares, which B. Riley sold for $1.6 million of net proceeds to Greenidge.
10.7. EQUITY BASED COMPENSATION
In February 2021, Greenidge adopted an equity incentive plan and reserved 3,831,112383,111 shares of classClass A common stock for issuance under the plan (the “2021 Equity Plan”), applicable to employees and non-employee directors. In April 2023, the stockholders approved an amendment and restatement of the Company's 2021 Equity Plan to increase the maximum aggregate number of shares of Class A common stock that may be issued for all purposes under the Plan by 500,000 shares of Class A common stock from 383,111 to 883,111 shares of Class A common stock and to remove the counting of shares of Class A common stock granted in connection with awards other than stock options and stock appreciation rights against the total number of shares available under the Plan as two shares of Class A common stock for every one share of Class A common stock granted in connection with such award. For the nine months ended September 30, 2023, no additional shares had been granted under the 2021 Equity Plan. In October 2022, the Company registered 307,684 shares of Class A common stock, outside of the 2021 Equity Plan, that were reserved for issuance upon the vesting and exercise of non-qualified stock options inducement grants.
Restricted Common Stock Unit Awards
During the nine months ended September 30, 2022, the Company awarded 55,870 restricted commonRestricted stock units (“RSUs”unit ("RSU") under the 2021 Equity Plan to employees, whichawards are generally eligible to vest over a three-year period.
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The Company’s unvested RSU awards activity for the nine months ended September 30, 20222023 is summarized below:
RSUsWeighted Average
Grant Date
Fair Value
Unvested at December 31, 2021516,987$6.80 
Granted55,870$5.70 
Vested(90,704)$6.25 
Unvested at September 30, 2022482,153$6.77 
RSUsWeighted Average
Grant Date
Fair Value
Unvested at December 31, 202224,729$68.80 
Vested(12,681)$61.69 
Unvested at September 30, 202312,048$76.28 
The value of RSU grants is measured based on their fair market value on the date of grant and amortized over their requisite service periods. DuringThere were no grants awarded during the ninethree months ended September 30, 2022, the fair market value of the awards granted totaled $0.3 million, and as of2023. At September 30, 2022,2023, there was approximately $2.0$0.5 million of total unrecognized compensation cost related to unvested restricted stock rights, which is expected to be recognized over a remaining weighted-average vesting period of approximately 1.02 years.less than 1 year.
Common Stock Options
The Company’s common stock options activity for the nine months ended September 30, 20222023 is summarized below:
OptionsWeighted Average
Exercise Price
Per Share		Weighted Average
Remaining
Contractual Life
(in years)		Aggregate
Intrinsic
Value
Outstanding at December 31, 2021583,080 $6.01 9.2$5,854 
Exercised(2,296)$6.25  
Forfeited(9,554)$6.77  
Expired(667)$6.25 
Outstanding at September 30, 2022570,563$6.00 8.38$- 
Exercisable as of September 30, 2022447,930$5.89 8.35$8,386 
OptionsWeighted Average
Exercise Price
Per Share		Weighted Average
Remaining
Contractual Life
(in years)		Aggregate
Intrinsic
Value
Outstanding at December 31, 2022364,185 $20.46 
Forfeited(4,538)$62.50  
Outstanding at September 30, 2023359,647$19.92 8.80$1,471 
Exercisable as of September 30, 202347,450$59.22 7.41$194 
The value of common stock option grants is measured based on their fair market value on the date of grant and amortized over their requisite service periods. As ofAt September 30, 2022,2023, there was approximately $0.2$2.2 million of total unrecognized compensation cost related to unvested common stock options, which is expected to be recognized over a remaining weighted-average vesting period of approximately 1.492.0 years.
Stock-basedStock-Based Compensation
The Company recognized stock-based compensation expense of $0.4$0.5 million and $0.4 million during the three months ended September 30, 20222023 and 2021,2022, respectively and $1.0$1.5 million and $1.5$1.0 million during the nine months ended September 30, 20222023 and 2021,2022, respectively. Stock-based compensation expense is included in selling, general and
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administrative expenses in the accompanying unaudited condensed consolidated statements of operations and comprehensive (loss) income.operations.
11.8. INCOME TAXES
The income tax provision for interim periods is determined using an estimate of the annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the estimate of the annual effective tax rate is updated, and if the estimated effective tax rate changes, a cumulative adjustment is made. In addition, the effect of changes in enacted tax laws or rates or tax status is recognized in the interim period in which the change occurs.
The Company's effective tax rate was (0.3)% and (13.1)% for the three and nine months ended September 30, 2022, respectively.
2023 was 0.0% which was lower than the statutory rate of 21% because the Company has recognized a full valuation allowance on its deferred tax assets. The Company continued to evaluate the realizability of deferred tax assets and, due to continued reduced profitability, as a result of the declines in bitcoin prices ,concludedconcluded that a valuation allowance should continue to be recognized for any deferred tax assets generated during the quarter. As a result, there was no net income tax benefit recorded for pretax losses of the U.S. operations in the three months and nine months ended September 30, 2022.2023.
22


The effective tax rate for the three and nine months ended September 30, 2022 was different from0.0% and (12.6)%, respectively, which was lower than the U.S. federal statutory rate of 21% primarily due to a charge of $15.0 million for the recognition of a valuation allowance during the second quarter ofthree months ended June 30, 2022 for deferred tax assets. Deferred tax assets, primarily relaterelated to historical net operating loss carryforwards of the Support.com business that was acquired in 2021.2021, due to the reduced profitability caused by the declines in the price of bitcoin and the increased power costs.
9. STOCKHOLDERS' EQUITY
Reverse Stock Split
On April 11, 2023, the stockholders approved a reverse stock split of the Company's issued and outstanding Class A common stock, par value $0.0001 per share and Class B common stock, par value $0.0001 per share, such that all outstanding shares of common stock shall be reclassified into a smaller number of shares such that every ten (10) shares of Class A common stock are combined and reclassified into one (1) share of Class A common stock and every ten (10) shares of Class B common stock are combined and reclassified into one (1) share of Class B common stock such that every holder of outstanding shares of common stock on the effective date specified in the Certificate of Amendment shall receive, subject to the treatment of fractional shares described in the Certificate of Amendment, one share of Class A common stock or Class B common stock, as applicable, in exchange for ten shares of Class A common stock or Class B common stock, as applicable, held by such holder (the “Reverse Stock Split,”).
Equity Purchase Agreement with B. Riley Principal Capital, LLC
On September 15, 2021, as amended on April 7, 2022, Greenidge entered into the Equity Purchase Agreement with B. Riley Principal. Pursuant to the Equity Purchase Agreement, Greenidge has the right to sell to B. Riley up to $500 million in shares of its Class A common stock, subject to certain limitations and the satisfaction of specified conditions in the Equity Purchase Agreement, from time to time over the 24-month period commencing on April 28, 2022.
In connection with the Equity Purchase Agreement, Greenidge entered into a registration rights agreement with the Investor, pursuant to which Greenidge agreed to prepare and file a registration statement registering the resale by the Investor of those shares of Greenidge’s Class A common stock to be issued under the Equity Purchase Agreement. The Company'sregistration statement became effective tax rate was 38.7% and 48.0%on April 28, 2022 (the "Effective Date"), relating to the resale of 572,095 shares of Greenidge’s Class A common stock in connection with the Equity Purchase Agreement.
From the Effective Date to September 30, 2023, Greenidge issued 159,923 shares of Class A common stock to the Investor pursuant to the Equity Purchase Agreement for aggregate proceeds of $5.0 million, net of discounts, of which there were no issuances in the three andor nine months ended September 30, 2021, respectively.2023.
At The effective tax ratesMarket Issuance Sales Agreement with B. Riley Securities
On September 19, 2022, as amended on October 3, 2022, Greenidge entered into the ATM Agreement with B. Riley and Northland, relating to shares of Greenidge’s Class A common stock. Under the ATM Agreement, B. Riley will use its commercially reasonable efforts to sell on Greenidge’s behalf the shares of Greenidge’s Class A common stock requested to be sold by Greenidge, consistent with B. Riley’s normal trading and sales practices, under the terms and subject to the conditions set forth in the ATM Agreement. Greenidge has the discretion, subject to market demand, to vary the timing, prices and number of shares sold in accordance with the ATM Agreement. B. Riley may sell the Company’s Class A common stock by any method permitted by law deemed to be an "at the market offering" as defined in Rule 415(a)(4) promulgated under the Securities Act. Greenidge pays B. Riley commissions for its services in acting as sales agent, in an amount to up to 5.0% of the gross proceeds of all Class A common stock sold through it as sales agent under the ATM Agreement. Pursuant to the registration statement filed registering shares to be sold in accordance with the terms of the ATM Agreement, Greenidge may offer and sell shares of its Class A common stock up to a maximum aggregate offering price of $22,800,000.
From October 1, 2022 through November 10, 2023, Greenidge issued 2,920,816 shares under the ATM Agreement for net proceeds of $14.0 million, of which 73,825 shares were issued for net proceeds of $0.4 million for the three months ended September 30, 2023 and 2,583,631 for net proceeds of $11.7 million for the nine months ended September 30, 2021 include the recognition of a deferred tax liability caused by the reorganization from a limited liability company to a corporation during the three months ended March 31, 2021.

12. EARNINGS PER SHARE
2023. The Company calculates basic earnings per share by dividing the net income (loss) by the weighted average number of shares issued includes the issuance of common stock outstanding for133,333 shares to B. Riley as payment of a $1.0 million amendment fee on the period. The diluted earnings per share is computed by assuming the exercise, settlement, and vesting of all potential dilutive common stock equivalents outstanding for the period using the treasury stock method.
The following table sets forth a reconciliation of the numerator and denominator used to compute basic earnings and diluted per share of common stock.
Three Months Ended September 30:Nine Months Ended September 30:
$ in thousands, except per share amounts2022202120222021
Numerator
Net loss$(23,177)$(7,896)$(131,488)$(3,099)
Less: Net income attributable to the member units before the reorganization———(648)
Net loss attributable to Greenidge$(23,177)$(7,896)$(131,488)$(3,747)
Denominator
Basic weighted average shares outstanding42,23930,11641,62028,949
Diluted weighted average shares outstanding42,23930,11641,62028,949
(Loss) earnings per share
Basic$(0.55)$(0.26)$(3.16)$(0.13)
Diluted$(0.55)$(0.26)$(3.16)$(0.13)
Promissory Note in February 2023.
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For the nine months ended September 30, 2021, basic (loss) earnings per share is applicable only for the period from January 29, 2021 through September 30, 2021, which is the period following the reorganization ofOther
In May 2023, Greenidge Generation Holdings LLC (" GGH") into Greenidge and presents the period that the Company had outstanding common stock. Prior to the reorganization, there were noissued 54,348 unregistered shares of its class A common stock outstanding, and the limited liability structure of GGH consisted of member units. The Company analyzed the calculation of earnings per unitto a vendor as payment for periods prior to the reorganization and determined that it resulted in values that would not be meaningful to the users of these condensed consolidated financial statements.
For the three and nine months ended September 30, 2022, there was no impact of dilution from any of the outstanding 482,153 RSUs or 570,563 common stock options due to the net loss, since inclusion of any impact from these awards would be anti-dilutive. For the three and nine months ended September 30, 2021, there were no shares excluded from the calculation of diluted earnings per share due to the net loss, since inclusion of any impact from these awards would be antidilutive.services provided.
13.10. COMMITMENTS AND CONTINGENCIES
Legal Matters
From time to time, the Company may be involved in various lawsuits and legal proceedings that arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in such matters may arise and harm the Company's business. The Company has received claims and lawsuits from former employees of the Support.com business. The Company is currently not aware of any such legal proceedings or claims that it believes will have a material adverse effect on its business, financial condition or operating results.
Environmental Liabilities
The Company has a coal combustion residual ("CCR") liability associated with the closure of a coal ash pond located on the Company's property in the Town of Torrey, New York. In accordance with ASC 410-30, Environmental LiabilitiesObligations ("ASC 410-30"), the Company has a liability of $17.3 million and $17.5 million as of September 30, 2023 and December 31, 2022, respectively. CCRs are subject to federal and state requirements. In October 2023, the Company completed the necessary steps to officially cease use of the coal ash pond. Following this occurring, The Company is required to complete the remediation of the coal ash pond CCR by November 2028 and will perform the work in stages over the next five years. Estimates are based on various assumptions including, but not limited to, closure and post-closure cost estimates, timing of expenditures, escalation factors, and requirements of granted permits. Additional adjustments to the environment liability may occur periodically due to potential changes in remediation requirements regarding coal combustion residuals which may lead to material changes in estimates and assumptions.
The Company owns and operates a fully permitted landfill that also acts as a leachate treatment facility. In accordance with ASC 410-30, Environmental Obligations ("ASC 410-30"), the Company has recorded an environmental liability of $8.6$12.1 million as of September 30, 20222023 and $10.5 million December 31, 2021.2022. The Company recorded a charge of $1.6 million during the three months ended September 30, 2023 as a result of updates to the post-closure cost estimates. As required by NYSDEC, companies with landfills are required to fund a trust to cover closure costs and expenses after the landfill has stopped operating or, in lieu of a trust, may negotiate to maintain a letter of credit guaranteeing the payment of the liability. Estimates are based on various assumptions including, but not limited to, closure and post-closure cost estimates, timing of expenditures, escalation factors, and requirements of granted permits. Additional adjustments to the environment liability may occur periodically due to potential changes in estimates and assumptions.
The Companyliability has coal combustion residual ("CCR") liabilities associated with the closure of a coal ash pond located on the Company's property in the Town of Torrey, New York. In accordance with ASC 410-30, the Company has a liability of $13.8 million as of September 30, 2022, which includes a charge of $11.1 million during the nine-months ended September 30, 2022 as a result of an update to the cost estimates as part of the ongoing evaluation of the site. CCRs are subject to federal and state requirements. Estimates arebeen determined based on various assumptions including, but not limitedestimated costs to closureremediate as well as post-closure costs which are assumed over an approximate 30-year period and post-closure cost estimates, timingassumes an annual inflation rate of expenditures, escalation factors, and requirements of granted permits. Additional adjustments to the environment liability may occur periodically due to potential changes in remediation requirements regarding coal combustion residuals which may lead to material changes in estimates and assumptions.3.0%.
Other Matters
Support.com has received and may in the future receive additional requests for information, including subpoenas, from other governmental agencies relating to the subject matter of a Consent Orderconsent order and Civil Investigative Demands.civil investigative demands. The Company intends to cooperate with these information requests and is not aware of any other legal proceedings against the Company by governmental authorities at this time.
Commitments
The Company entered into a contract with Empire Pipeline Incorporated (“Empire”) in September 2020 that provides for the transportation to its pipeline of 15,000 dekatherms of natural gas per day, approximately $0.2 million per month. The contract ends in September 2030 and may be terminated by either party with 12 months' notice after the initial 10-year period.
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14.11. CONCENTRATIONS
The Company has one powera single hosting customer NYISO, that accounted for 12%58% and 9%57% of consolidatedthe company's revenue forduring the three months ended September 30, 2022 and 2021, respectively. NYISO accounted for 13% and 12% of consolidated revenue for the nine months ended September 30, 20222023, respectively. There was no datacenter hosting revenue during the three and 2021, respectively.nine months ended September 30, 2022.
For cryptocurrency datacenterthe Company's self-mining operations, Greenidge considers its mining pool operators to be its customers. Greenidge has historically used a limited number of pool operators that have operated under contracts with a one-day term, which allows Greenidge the option to change pool operators on a daily basis.at any time. Revenue from one of the Company’s pool operator customers accounted for approximately 60%32% and 62%81% of total revenue for the three months ended September 30, 20222023 and 2021,2022, respectively, and 56%31% and 37%75% for the nine months ended September 30, 20222023 and 2021,2022, respectively.
The Support Services segment's largestCompany has one major power customer, NYISO, that accounted for approximately 19%10% and 18%17% of the Company's consolidatedits revenue duringfor the three months ended September 30, 2023 and 2022, respectively , and 10% and 17% for the nine months ended September 30, 2023 and 2022, respectively, and also accounted for approximately 69% and 67% of the Company's consolidated accounts receivable balance at September 30, 2022 and December 31, 2021, respectively. The contract with the Support Services segment's largest customer expires on December 31, 2022 and has not been renewed.
The Company has one natural gas vendor that accounted for approximately 67%19% and 60%51% of the aggregate cost of revenue- cryptocurrency data center and cost of revenue- power and capacityrevenue for the three months ended September 30, 20222023 and 2021,2022, respectively, and 64%26% and 59% of cost of revenue37% for the nine months ended September 30, 20222023 and 2021,2022, respectively.
The Company has one major provider of hosting services for its self-mining operation that accounted for approximately 24% and 15% of cost of revenue for the three and nine months ended September 30, 2023, respectively. There was no hosting services for the self-mining operation during the three and nine months ended September 30, 2022.
15.
12. RELATED PARTY TRANSACTIONS
Letters of Credit
The Company's controlling stockholder, Atlas, has a letter of credit from a financial institution in the amount of $5.0 million at September 30, 2023 and December 31, 2022, payable to the NYSDEC. This letter of credit guarantees the current value of the Company’s landfill environmental liability. See Note 10, "Commitments and Contingencies" under the section "Environmental Liabilities" for further details.
Atlas also has a letter of credit from a financial institution in the amount of $3.6 million at September 30, 2023 and December 31, 2022, payable to Empire Pipeline Incorporated (“Empire”) in the event the Company should not make contracted payments for costs related to a pipeline interconnection project the Company has entered into with Empire (see Note 10, "Commitments and Contingencies").
Guarantee
An affiliate of Atlas had guaranteed the payment obligation of Greenidge in favor of Emera Energy Services, Inc. ("Emera") under an Energy Management Agreement and an ISDA Master Agreement under which Greenidge may enter into various transactions involving the purchase and sale of natural gas, electricity and other commodities with Emera. This guaranty was limited to $1.0 million and is no longer in effect. Atlas did not make any payments under the guarantee during the three and nine months ended September 30, 2023 and 2022.
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13. SUPPLEMENTAL BALANCE SHEET AND CASH FLOW INFORMATION
$ in thousandsSeptember 30, 2023December 31, 2022
Prepaid expenses:
Electric deposits$3,500 $1,400 
Prepaid insurance3,798 3,822 
Other719 1,044 
Total$8,017 $6,266 
Accrued expenses:
Accrued interest$1,530 $1,741 
Accrued compensation2,164 1,535 
Accrued non-income taxes1,371 1,932 
Other2,951 6,119 
Total$8,016 $11,327 
Greenidge had the following noncash investing and financing activities:
Nine Months Ended September 30,
$ in thousands20232022
Property and equipment purchases in accounts payable$1,581 $2,501 
Common stock issued for amendment fee to lender$1,000 $— 
Exchange of assets for reduction in debt$49,950 $— 
Exchange of coupons for reduction in debt$1,152 $— 
Exchange of equipment deposits for reduction in debt$7,381 $— 
Accrued interest added to debt principal$592 $— 
Nine Months Ended September 30,
$ in thousands20222021
Shares issued to Support.com shareholders upon Merger$— $93,885 
Property and equipment purchases financed with common stock$— $991 
Contribution of Preferred Units, Senior Priority Units, and notes payable to related
party for Greenidge class B common stock		$— $72,891 
Issuance of shares for investor fee associated with successful completion
of Merger		$— $17,826 
Issuance of warrants to advisor in connection with completion of Merger$— $8,779 
Under the contract with its hosting provider, Greenidge is required to maintain cash in a restricted account sufficient to cover earned but unpaid hosting services. At September 30, 2023, this account had $1.2 million of cash designated for payment of such services.
16.14. SUBSEQUENT EVENTS
Subsequent events have been evaluated through November 14, 2022,2023, the date at which the condensed consolidated financial statements were available to be issued, and the Company has concluded that no such events or transactions took place that would require disclosure herein, except as stated directly below.below:
Management Transition
Effective October 8, 2022, The BoardOn November 9, 2023 we closed the Sale of Directors appointed David Andersonthe South Carolina Facility to complete the positiondeleveraging transaction with NYDIG. In exchange for the sale to NYDIG of Chief Executive Officer and Scott MacKenzie to the position of Chief Strategy Officer. Upon assuming the role, Mr. Anderson joined Greenidge's Board of Directors. As an inducement for Messrs. Anderson and MacKenzie to enter into employment with Greenidge, Greenidge's Compensation Committee approved grants of stock options ("Options") to each of Messrs. Anderson and MacKenzie. The Options granted to Mr. Anderson are exercisable for 1,852,812 shares of Greenidge's class A common stock ("Shares")upgraded 44 MW South Carolina mining facilities and the Options granted to Mr. MacKenzie are exercisable for 1,224,030 Shares. subdivided real estate of approximately 22 acres of land, Greenidge received total consideration of approximately $28 million:
◦The options were grantedSenior Secured Loan with NYDIG with remaining principal of approximately $17.7 million was extinguished;
◦The B Riley Commercial Secured Promissory Note with remaining principal of approximately $4.1 million as of September 30, 2023, which NYDIG purchased from B. Riley Commercial on October 10, 2022July 20, 2023 at par was extinguished;
◦A cash payment of approximately $4.5 million, and have an exercise price equal to the closing price
◦The Company will also receive bonus payments earned of approximately $1.6 million as a Share on the grant date. The Options vest in equal annual installments on eachresult of the first, second and third anniversariescompletion of the grant date, subject to Messrs. Anderson'sexpansion of the upgraded mining facility and MacKenzie's continued service through the applicable vesting dates, respectively.facility's uptime performance,
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Greenidge also announcedwhich are payable at the mutual agreement between Greenidgecompletion of the transition services period, which is anticipated to occur in December 2023.
In conjunction with the sale, the Company and Jeffrey Kirt that Mr. Kirt would resign from his roles as CEO and Director, effectiveNYDIG terminated the South Carolina Hosting Order. As a result, at the time of closing the Company returned NYDIG's security deposit, which are included in other long-term liabilities as of October 7, 2022September 30, 2023, resulting in a cash outflow of $2.2 million. Within thirty days of closing, the Company also expects to receive a cash inflow of $3.5 million from the return of its security deposit held by the local utility, which was included in prepaid expenses and transition to providing consulting services to Greenidge. Mr. Kirt’s consulting services to Greenidge are scheduled to continue through October 10,other assets as of September 30, 2023. Under
Additionally, the termsCompany paid the remaining accrued interest on the Senior Secured and Secured Promissory Note of $0.9 million. The Company also settled certain third party transaction costs and Greenidge's share of local taxes of $0.5 million.
Following the completion of the letter agreement that describeSouth Carolina Facility sale, the termsCompany continues to own approximately 153 acres of Mr. Kirt’s separationland in South Carolina, and is assessing potential uses of employment from Greenidgethe remaining site, which may include the sale of the property. The NYDIG Hosting Agreements related to the New York Facility were not impacted by this transaction and the terms of his consulting services to Greenidge, Mr. Kirt will receive his base salary of $750,000 during the consulting period, immediate vesting of 229,868 RSUs, and a one-time grant under the Company’s 2021 Equity Incentive Plan of 280,000 restricted stock units that were fully vested at grant on October 10, 2022 and settleremain in twelve weekly installments beginning on October 14, 2022.place.

ATM Agreement
On September 19, 2022, as amended on October 3, 2022, Greenidge entered into the ATM Agreement with B. Riley and Northland. Pursuant to the ATM Agreement, Greenidge may offer and sell shares of its class A common stock having an aggregate offering price of $22,800,000. See Note 9, Stockholder's Equity.

Support Services Customer Contract
In October 2022, the Company was informed that the contract associated with the Support Services segment's largest customer, which expires on December 31, 2022, will not be renewed beyond that date. This customer accounted for approximately 19% and 18% of the Company's consolidated revenue during the three and nine months ended September 30, 2022, respectively.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion should be read together with the audited financial statements and the related notes thereto of Greenidge Generation Holdings Inc. (“Greenidge”), together with its consolidated subsidiaries (the “Company”) for the years ended December 31, 20212022 and 20202021 included in our Annual Report on Form 10-K and the unaudited interim financial statements and related notes thereto of the Company for the three and nine months ended September 30, 2022 and 20212023 included elsewhere in this Quarterly Report on Form 10-Q. This discussion contains certain forward-looking statements that reflect plans, estimates and beliefs and involve numerous risks and uncertainties, including but not limited to those described in the “Risk Factors” disclosed in Item 1A to Part I of Greenidge's Annual Report on Form 10-K for the year ended December 31, 20212022 and in this Quarterly Report on Form 10-Q, and “Cautionary Statement Regarding Forward-Looking Statements” sections of this Quarterly Report on Form 10-Q. Actual results may differ materially from those contained in any forward-looking statements. For purposes of this section, “the Company,” “we,” “us” and “our” refer to Greenidge Generation Holdings Inc. together with its consolidated subsidiaries. You should carefully read “Cautionary Statement Regarding Forward-Looking Statements” in this Quarterly Report on Form 10-Q.
Overview
Cryptocurrency Datacenter and Power Generation Segment
We own cryptocurrency datacenter operations in the Town of Torrey, New York (the "New York Facility") and in Spartanburg, South Carolina (the “South"South Carolina Facility”Facility" and, together with the New York Facility, the “facilities”"facilities"). The New York Facility is a vertically integrated cryptocurrency datacenter and power generation facility with an approximately 106 megawatt (“MW”("MW") nameplate capacity, natural gas power generation facility. We generate revenue from three primary sources (1) datacenter hosting which we commenced on January 30, 2023, (2) cryptocurrency mining and (3) power and capacity. On November 9, 2023, the South Carolina Facility was sold to NYDIG and assets of the facility were classified as Held for Sale as of September 30, 2023. See Recent Transactions below for the details of the transaction.
We generate all the power we require for our cryptocurrency datacenter operations in the New York Facility, where we enjoy relatively lower market prices for natural gas due to our access to the Millennium Gas Pipeline price hub. At the South Carolina Facility, we purchase power from a supplier of approximately 60% zero-carbon sourced energy, which results in relatively stable energy cost environment. We believe our competitive advantages include relatively low fixed costs, an efficientefficiently designed mining fleetinfrastructure and in-house operational expertise.expertise that we believe is capable of maintaining a higher operational uptime of miners. We are currently mining bitcoin and contributinghosting bitcoin miners, which contributes to the security and transactability of the bitcoin ecosystem while concurrently supplying power to assist in meeting the power needs of homes and businesses in the region served by our New York Facility.
Greenidge datacenter operations consisted of approximately 42,300 miners with approximately 4.6 EH/s of combined capacity for both datacenter hosting and cryptocurrency mining, of which 32,100 miners, or 3.4 EH/s, is associated with datacenter hosting and 10,200 miners, or 1.2 EH/s, is associated with Greenidge's cryptocurrency mining. Subsequent to the South Carolina transaction, datacenter operations will consist of approximately 27,900 miners with approximately 2.9 EH/S of combined capacity for both datacenter hosting and cryptocurrency mining, of which 17,700 miners or 1.8 EH/s, is associated with datacenter hosting and 10,200 miners, or 1.2 EH/s is associated with Greenidge's cryptocurrency mining.
Recent Transactions
South Carolina Expansion and Sale
In August 2023, in connection with a non-binding term sheet that the Company entered into with NYDIG in June to effect a deleveraging transaction, the Company completed an electrical upgrade at its South Carolina facility increasing the capacity to 44 MW, as well as the expansion of the mining infrastructure in order to support approximately 8,500 incremental miners. Upon completion of this expansion, on August 10, 2023, the Company and NYDIG amended the NYDIG Hosting Agreements to increase the number of miners being hosted by Greenidge utilizing all of the expansion. The NYDIG Hosting Agreements were amended in furtherance of the broader transaction contemplated by the non-binding term sheet pursuant to which the Company would sell to NYDIG all of the upgraded mining facilities at the South Carolina site and would also subdivide and sell to NYDIG the approximately 22 acres of land on which the facilities are located. As the Company was still in the process of subdividing the 22 acre parcel, which is required to close the transaction pursuant to the non-binding term sheet after having completed the upgrade of the mining facilities, the parties have amended the existing NYDIG Hosting Agreements in the interim. In connection with amending the NYDIG Hosting Agreements, and in order to facilitate the transactions contemplated by the non-binding term sheet, NYDIG also agreed, among other things, to grant the Limited Waiver to the Company with respect to reducing the Company’s minimum cash requirement under the NYDIG Senior Secured Loan from $10 million to $6 million and to amend the NYDIG Senior Secured Loan and the Secured Promissory Note issued to B Riley Commercial (which NYDIG purchased from B Riley Commercial on July 20, 2023 at par) on August 21, 2023 to extend the waiver of the minimum cash requirement as well as to suspend interest and principal payments due under both the NYDIG Senior Loan and the B Riley Commercial Note
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until the earlier of (i) the completion of the transactions contemplated by the non-binding term sheet, or (ii) December 29, 2023.
On November 9, 2023 we closed the Sale of the South Carolina Facility to complete the deleveraging transaction with NYDIG. In exchange for the sale to NYDIG of the upgraded 44 MW South Carolina mining facilities and the subdivided real estate of approximately 22 acres of land, Greenidge received total consideration of approximately $28 million:
◦The Senior Secured Loan with NYDIG with remaining principal of approximately $17.7 million was extinguished;
◦The B Riley Commercial Secured Promissory Note with remaining principal of approximately $4.1 million as of September 30, 2022, we powered2023, which NYDIG purchased from B. Riley Commercial on July 20, 2023 at par was extinguished;
◦A cash payment of approximately 76 MW$4.5 million, and
◦The Company will also receive bonus payments earned of approximately $1.6 million as a result of the completion of the expansion of the upgraded mining capacity capablefacility and the facility's uptime performance, which are payable at the completion of producing an estimated aggregate hash rate of 2.4 EH/s at our facilities, substantially all ofthe transition services period, which is dedicatedanticipated to bitcoin mining. Our Cryptocurrency Datacenteroccur in December 2023.
In conjunction with the sale, the Company and Power Generation segment generates revenue i) throughNYDIG terminated the exchangeSouth Carolina Hosting Order. As a result, at the time of bitcoins earnedclosing the Company returned NYDIG's security deposit, which are included in other long-term liabilities as of September 30, 2023, resulting in a cash outflow of $2.2 million. Within thirty days of closing, the Company also expects to receive a cash inflow of $3.5 million from the return of its security deposit held by application-specific integrated circuit computers ("ASICs" or "miners") as rewards and transaction fees for U.S. dollars and, to a much lesser extentthe local utility, which was included in 2021 through revenue earned from third parties for hosting ASICs owned by third parties and providing operations, maintenanceprepaid expenses and other blockchain related servicesassets as of September 30, 2023.
Additionally, the Company paid the remaining accrued interest on the Senior Secured and Secured Promissory Note of $0.9 million. The Company also settled certain third party transaction costs and Greenidge's share of local taxes of $0.5 million.
Following the completion of the South Carolina Facility sale, the Company continues to third partiesown approximately 153 acres of land in South Carolina, and ii) throughis assessing potential uses of the remaining site, which may include the sale of electricity generated by our power plant, and not consumed in cryptocurrency datacenter operations,the property. The NYDIG Hosting Agreements related to New York State’s power grid at prices set on a daily basis through the New York Independent System Operator ("NYISO"Facility were not impacted by this transaction and remain in place.

Cryptocurrency Mining Hosting Agreements
On March 15, 2023, we entered into a hosting agreement with Conifex Timber Inc. (“Conifex”) wholesale market.to host 750 miners at
their facility in British Columbia, Canada (the “Conifex Hosting Agreement”). On April 27, 2023, we entered into a hosting agreement with Core Scientific, Inc. (“Core”) in which Core will host and operate approximately 6,900 of Greenidge-owned bitcoin miners at its facilities (the “Core Hosting Agreement”, and, together with the NYDIG Hosting Agreements as described below and the Conifex Hosting Agreement, the “Hosting Agreements”) . We opportunistically increase or decreasealso installed an additional 1,500 of company-owned miners at our existing facilities. Under the total amountterms of electricity soldthe Hosting Agreements, the host entities will operate Greenidge owned miners in exchange for a hosting fee and a percentage of the mining proceeds.

NYDIG Agreements
On January 30, 2023, we entered into a number of agreements associated with our secured debt with NYDIG, including a Membership Interest and Asset Purchase Agreement (the "NYDIG Purchase Agreement"), a Senior Secured Loan Agreement (the "Senior Secured Loan") and a Debt Settlement Agreement (the "Debt Settlement Agreement") regarding our 2021 and 2022 Master Equipment Finance Agreements (the "MEFAs") with NYDIG. The effect of these agreements was to transfer to NYDIG ownership of bitcoin mining equipment that was secured by the power plant based on prevailing prices inMEFAs along with certain credits and coupons that had accrued to Greenidge for previous purchases of mining equipment with a bitcoin miner manufacturer. The transfer of these assets reduced the wholesale electricity market.
We believe that, over the long-term, behind-the-meter power generation capability provides a stable, cost-effective source of power for cryptocurrency datacenter activities. Our behind-the-meter power generation capability provides us with stable delivery due to the absence of any contract negotiation risk with third-party power suppliers, the absence of transmissionprincipal and distribution cost risk and the firm delivery of natural gas for our New York Facility via our captive pipeline. Furthermore, our New York Facility has operated with minimal downtime for maintenance and repairs over recent years. Notwithstanding the structural stabilityaccrued interest balance of our behind-the-meter capabilities, we do however procure natural gas at our New York Facility throughsecured debt with NYDIG from $75.8 million to $17.3 million, for an aggregate debt reduction of $58.5 million (the "Refinancing"). The Senior Secured Loan allowed for a third-party energy managervoluntary prepayment of the loan in kind of approximately $10 million by transferring ownership of certain mining infrastructure assets to NYDIG if NYDIG enters into a binding agreement, facilitated by Greenidge, securing rights to a site for a future mining facility by April 30, 2023, which schedules delivery of our natural gas needs from the wholesale market which is subjectdid not occur. NYDIG chose not to price volatility. We procure the majority of our natural gas at spot prices and enter into fixed price forward contracts from timea binding agreement securing rights to time for the purchase of a portion of anticipated natural gas purchases based on prevailing market conditions to partially mitigate the financial impacts of natural gas price volatility and to manage commodity risk. These forward contracts qualify for the normal purchases and sales exception under Accounting Standards Codification ("ASC") 815, Derivatives and Hedging, as it is probable that these contracts will result in physical delivery.site facilitated by Greenidge.
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Volatility
The restructuring of the NYDIG debt is expected to improve Greenidge’s liquidity during 2023 as the payments required in 2023 on the natural gas market has impactedremaining principal balance is interest payments of $2.0 million. This reduced debt service is substantially lower than the $62.7 million of principal and will continueinterest payments which would have been required in 2023 pursuant to impact our resultsthe 2021 and 2022 MEFAs, both of operationswhich have now been refinanced.

Greenidge provided additional collateral to NYDIG on its remaining mining-related assets, infrastructure assets, equity of its subsidiaries and certain cash balances to secure the remaining debt balance with NYDIG. The Senior Secured Loan contains certain affirmative, negative and financial performance. Natural gas prices have been on an upward trajectory since Junecovenants, including the maintenance of 2021a minimum cash balance of $10 million, early amortization events, and are expectedevents of default.

NYDIG Hosting Agreements
On January 30, 2023, we entered into the Hosting Agreements with NYDIG affiliates, which resulted in us largely operating as a hosting facility and service provider for miners acquired from us by NYDIG affiliates (the "NYDIG Hosting Agreements"). Under these agreements, we agreed to continuehost, power and provide technical support services, and other related services, to NYDIG affiliates’ mining equipment at elevated levels during 2022. During 2022, the volatility inour facilities for a term of five years. The terms of such arrangements require NYDIG affiliates to pay a hosting fee that covers the cost of natural gas resulted in an approximate 121% increasepower and direct costs associated with management of the mining facilities as well as a gross profit-sharing arrangement. This allows us to participate in the weighted averageupside should bitcoin prices rise, but reduces our downside risk of bitcoin price deterioration and cost increases related to natural gas. The arrangement covers most of natural gas duringour current mining capacity at the nine months ended September 30, 2022, as comparedNew York Facility and included the entire South Carolina Facility prior to the same period sale of the South Carolina Facility to NYDIG on November 9, 2023, at which point the Hosting Agreement related to South Carolina was terminated. During the first quarter, we transitioned the mining operations to hosting by re-pooling the miners to NYDIG mining pools during February and March 2023. This process was substantially complete at March 31, 2023.

B. Riley Promissory Note
On January 30, 2023, we also entered into the Consent and Amendment No. 1 to the Promissory Note ("Promissory Note Amendment")in favor of B. Riley Commercial ("B. Riley Commercial") regarding $10.6 million of debt, including accrued interest, which included the prior year. This is currently affecting, and has affected, the performancefollowing terms:
•B. Riley Commercial purchased $1 million of our business. VolatilityClass A common stock on a principal basis at a price of $7.50 per share pursuant to an at-the-market issuance sales agreement, as amended, dated as of September 19, 2022, by and among the Company, B. Riley Securities, Inc. (“B. Riley Securities”) and Northland Securities, Inc., relating to shares of Greenidge’s Class A common stock (the "ATM Agreement");
•Atlas Holdings LLC ("Atlas") purchased $1 million of our Class A common stock at market prices through B. Riley Securities acting in its capacity as sales agent pursuant to the natural gas market mayATM Agreement;
•Greenidge made a principal payment of $1.9 million to B. Riley Commercial in February 2023;
•No further principal or interest payments are required to be causedmade on the Secured Promissory Note until June 2023 except for the 15% of proceeds from sales of equity;
•Principal payments of $1.5 million beginning in June 2023 through November 2023 when any remaining principal will be due; AND
•We paid B. Riley Commercial a $1 million amendment fee payable by disruption in the delivery of fuel, including disruptionsour Class A common stock to B. Riley Commercial, issuable at $7.50 per share, acquired on a principal basis under the ATM Agreement.


Discontinued Operations
The contract with the Support.com's largest customer expired on December 31, 2022 and was not renewed. As a result, we have classified the Support.com business as held for sale and discontinued operations in these condensed consolidated financial statements as a result of management and the outbreak or escalationboard of military hostilities, weather, transportation difficulties, global demanddirectors making a decision to pursue alternatives for the Support.com business and supply dynamics, labor relations, environmental regulations or the financial viability of fuel suppliers.to strictly focus on its cryptocurrency datacenter and power generation operations. See “Note 3, "Risk Factors—Risks Related to Our Business—Risks Related to our Power Generation OperationsDiscontinued Operations"” in Part I, Item 1A of our Annual Report on Form 10-Kunaudited condensed consolidated financial statements for the year ended December 31, 2021 and in this Quarterly Report on Form 10-Q.additional information.
Support Services Segment
Effective September 14, 2021, following the completion of the Merger (see Notes 1 and 3 in this Quarterly Report on Form 10-Q), Support.com began operating within the Company as a separate operating and reporting segment. Our Support Services segment provides solutions and technical programs to customers delivered by home-based employees. The Support Services segment provides customer service, sales support, and technical support primarily to large corporations, businesses and professional services organizations. The Support Services segment also earns revenues for end-user software products provided through direct customer downloads and sale via partners. The Support Services segment operates primarily in the United States, but also has employees located in Philippines, India, Mexico, Columbia and Canada, including staff providing support services.
Development Plan Update
The Company had mining capacity of approximately 2.4 EH/s from approximately 24,500 active miners at September 30, 2022. The Company is reevaluating its development plan as it works through its plans to improve liquidity.
Beginning in the second quarter of 2022, the Company began to reduce its inventory of older, less efficient mining equipment in order to free up mining capacity for newer more, efficient miners in its order book. The Company expects this trend to continue through the end of 2022, and the Company may also consider other assets sales, including but not limited to sales of surplus mining infrastructure equipment, to further enhance its liquidity position.
Title V Air Permit
In late June 2022, the New York State Department of Environmental Conservation (“NYSDEC”), announced its denial of the Title V air permit renewal for our New York Facility. The Company filed a notice with the NYSDEC on July 28, 2022 requesting a hearing on NYSDEC’s decision. Having timely completed its application to renew its Title V air permit, the Company is permitted to operate uninterrupted under a State Administrative Procedures Act extension, in full compliance with its existing Title V Air Permit, until four months after final resolution of the adjudicatory hearing process. While no adjudicatory proceedings have been scheduled to date, the Company expects that the appeals process may take a number of years to fully resolve.
Water Permit
The New York Facility is subject to SPDES and Water Withdrawal permits issued by NYSDEC for five-year terms, which include state and federal requirements applicable to the cooling water intake structure and discharges from the facility to the Keuka Lake Outlet and Seneca Lake. These permits were renewed by NYSDEC prior to the September 30, 2022 expiration date. As part of this renewal the Company was granted an extension on installing the best technology available for cooling water intake structures until January 2023. The Company is in the process of installing these structures and expects to meet the January deadline.

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Results offrom Continuing Operations - Three Months Ended September 30,
The following table sets forth key components of our results from continuing operations and should be read in conjunction with our condensed consolidated financial statements and related notes. All comparisons below refer to the third quarter 2022
three months ended September 30, 2023 versus the third quarter 2021,first three months ended September 30, 2022, unless otherwise specified.
Three Months Ended September 30,Variance
$ in thousands20222021$%
Total revenue$29,359 $35,754 $(6,395)(18)%
Cost of revenue (exclusive of depreciation and amortization shown below)22,095 9,659 12,436 129 %
Selling, general and administrative expenses10,240 5,446 4,794 88 %
Merger and other costs242 29,847 (29,605)(99 %)
Depreciation and amortization13,835 2,667 11,168 419 %
Loss from operations(17,053)(11,865)(5,188)(44 %)
Other (expense) income:
Interest expense, net(5,430)(1,009)(4,421)(438 %)
Gain on sale of digital assets— 18 (18)N/A
Loss on sale of assets(759)— (759)N/A
Other income (loss), net144 (29)173 N/A
Total other expense, net(6,045)(1,020)(5,025)(493 %)
Loss before income taxes(23,098)(12,885)(10,213)(79)%
Provision (benefit) for income taxes79 (4,989)5,068 102 %
Net loss$(23,177)$(7,896)$(15,281)(194)%
Adjusted Amounts (a)
Adjusted (loss) income from operations$(16,628)$18,110 $(34,738)N/A
Adjusted operating margin(56.6 %)50.7 %
Adjusted net (loss) income$(21,993)$12,166 $(34,159)N/A
Other Financial Data (a)
EBITDA (loss)$(3,833)$(9,209)$5,376 58 %
as a percent of revenues(13.1 %)(25.8)%
Adjusted EBITDA (loss)$(2,288)$21,177 $(23,465)N/A
as a percent of revenues(7.8)%59.2 %
Three Months Ended September 30,Variance
20232022$%
REVENUE:
Datacenter hosting revenue$12,136 $— $12,136 N/A
Cryptocurrency mining revenue6,602 18,272 $(11,670)(64)%
Power and capacity2,141 3,613 (1,472)(41)%
Total revenue20,879 21,885 (1,006)(5)%
OPERATING COSTS AND EXPENSES:
Cost of revenue (exclusive of depreciation)15,355 18,435 (3,080)(17)%
Selling, general and administrative6,662 7,789 (1,127)(14)%
Depreciation3,383 13,511 (10,128)(75)%
Impairment of long-lived assets4,000 — 4,000 N/A
Loss (gain) on sale of assets— 759 (759)(100)%
Remeasurement of environmental liability1,600 — 1,600 N/A
Total operating costs and expenses31,000 40,494 (9,494)(23)%
Operating loss(10,121)(18,609)8,488 (46)%
OTHER EXPENSE, NET:
Interest expense, net(3,040)(5,430)2,390 (44)%
Other income (expense), net— 126 (126)(100)%
Total other expense, net(3,040)(5,304)2,264 (43)%
Loss from continuing operations before income taxes(13,161)(23,913)10,752 (45)%
Provision for income taxes— — — N/A
Net loss from continuing operations$(13,161)$(23,913)$10,752 (45)%
Adjusted Amounts (a)
Adjusted operating loss from continuing operations$(3,852)$(17,667)13,815 (78)%
Adjusted operating margin from continuing operations(18.4)%(80.7)%
Adjusted net loss from continuing operations$(6,892)$(22,971)16,079 (70)%
Other Financial Data (a)
EBITDA (loss) from continuing operations$(6,738)$(4,972)(1,766)36 %
as a percent of revenues(32.3)%(22.7)%
Adjusted EBITDA (loss) from continuing operations$13 $(3,669)3,682 (100)%
as a percent of revenues0.1 %(16.8)%
(a)Adjusted Amounts and Other Financial Data are non-GAAP performance measures. A reconciliation of reported amounts to adjusted amounts can be found in the "Non-GAAP Measures and Reconciliations" section of this Management's Discussion and Analysis ("MD&A").
Revenue
 Three Months Ended
September 30,		Variance
$ in thousands20222021$%
Cryptocurrency datacenter$18,272 $31,156 $(12,884)(41)%
Power and capacity3,613 3,077 536 17 %
Services and other7,474 1,521 5,953 391 %
Total revenue$29,359 $35,754 $(6,395)(18)%
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The components of revenue, expressed as a percentage of total revenue were:
Three Months Ended
September 30,
20222021
Cryptocurrency datacenter63 %87 %
Power and capacity12 %9 %
Services and other25 %4 %
Total revenue100 %100 %
Total revenue decreased $6.4 million, or 18%, to $29.4 million during the three months ended September 30, 2022 as compared to the prior year period. The decrease in revenue was due to the following:
•The revenue from our cryptocurrency datacenter operations decreased $12.9 million, or 41%, to $18.3 million primarily due to bitcoin prices decreasing by 49% compared to prior year and, to a lesser extent, increased difficulty rates. The price decreases were partially offset by a 19% higher volume of bitcoin mined as a result of our expanded fleet which resulted in a 115% increase in hash rate from the prior year comparative period.
•Power and capacity revenue increased $0.5 million, or 17%, to $3.6 million due to an increase in selling price per megawatt hour ("MWh") of 58% offset by a decline in MWh capacity sold to the power grid of 26%.
•The Services and other segment included a full three months of operations in 2022 compared to 16 days of operations in 2021 following the acquisition on September 14, 2021. This resulted in an increase in revenue of $6.0 million, or 391%, to $7.5 million during the three months ended September 30, 2022.
Refer to the "Segment Results of Operations - Three Months Ended September 30" of this MD&A for a more detailed discussion of revenues from the Cryptocurrency Datacenter and Power Generation segment and the Support Services segment.
Cost of revenue (exclusive of depreciation and amortization)
 Three Months Ended
September 30,		Variance
$ in thousands20222021$%
Cryptocurrency datacenter$14,675 $5,974 $8,701 146 %
Power and capacity3,760 2,831 929 33 %
Services and other3,660 854 2,806 329 %
Total cost of revenue$22,095 $9,659 $12,436 129 %
As a percentage of total revenue75.3 %27.0 %

Total cost of revenue, exclusive of depreciation and amortization, increased $12.4 million, or 129%, to $22.1 million in the three months ended September 30, 2022 as compared to the prior year period. The following were the main contributors to the increase in cost of revenue:
•The cost of revenue per MWh (exclusive of depreciation and amortization) increased for both cryptocurrency datacenter and power and capacity operations due to a significant increase in the natural gas cost per dekatherm, which increased approximately 104% in the three months ended September 30, 2022 as compared to the same period of 2021.
•Cryptocurrency datacenter cost of sales increased 146% due to the significant increase in cryptocurrency datacenter fleet requiring an increase in the use of megawatt hours.
•Services and other cost of revenue increased $2.8 million, or 329%, to $3.7 million for the three months ended September 30, 2022 as compared to the prior year period primarily resulting from inclusion of the full three months of operations of Support.com in 2022 compared to only 16 days of operations included in the comparable period of the prior year.
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Total cost of revenue as a percentage of total revenue was significantly higher due to the higher cost of natural gas combined with the lower price of bitcoin in the Cryptocurrency Datacenter and Power Generation segment.
Selling, general and administrative expenses
Selling, general and administrative expenses increased $4.8 million, or 88%, to $10.2 million for the three months ended September 30, 2022 as compared to the prior year period. The main drivers of the increase in selling, general and administrative expenses were:
•Total employee costs increased $1.1 million, or 550%, as a result of increased headcount, including the addition and expansion of executive level positions required to operate as a public company as well as increases in order to match the growth in the operational footprint of the business.
•Increased legal and professional fees of $1.7 million, or 636%, due to increased legal and regulatory costs associated with permit renewals and environmental matters at the New York plant, legal and consulting costs associated with potential expansion opportunities and other accounting and consulting fees associated with being a public company .
•The Support Services segment added $2.2 million to Selling, general and administrative expenses for the three months ended September 30, 2022 due to inclusion of the full three months of operations of Support.com in 2022 compared to only 16 days of operations included in the comparable period of the prior year.
Merger and other costs
Merger and other costs included professional and other fees associated with the merger transaction and becoming a public company. These costs decreased $29.6 million, or 99%, to $0.2 million, as these were primarily non-recurring transaction costs in 2021.
Depreciation and amortization
Depreciation and amortization increased $11.2 million, or 419%, to $13.8 million for the three months ended September 30, 2022 as compared to the prior year period primarily due to the purchase and deployment of additional miners and associated infrastructure, as well as a change in depreciable lives effective July 1, 2022, resulting in higher depreciation expense. Additionally, the Merger increased depreciation and amortization by $0.3 million for the three months ended September 30, 2022 as compared to the prior year period.
Income (loss) from operations
Loss from operations increased $5.2 million, or 44%, to $17.1 million for the three months ended September 30, 2022 as compared to the three months ended September 30, 2021. The increase is primarily related to lower cryptocurrency datacenter revenue as a result of lower bitcoin prices, increases to input costs for the Cryptocurrency and datacenter and Power and capacity segments as a result of higher natural gas costs, higher depreciation due to the expansion of the datacenter operations and higher selling, general and administrative costs.
Adjusted loss from operations was $16.6 million for the three months ended September 30, 2022 as compared to adjusted income from operations of $18.1 million in the three months ended September 30, 2021. The adjusted loss from operations was driven by the same factors described above impacting loss from operations. A reconciliation of reported amounts to adjusted amounts can be found in the "Non-GAAP Measures and Reconciliations" section of this MD&A.
Other expense, net
During the three months ended September 30, 2022, Greenidge incurred an increase of $5.0 million of other expense, primarily due to increased interest expense associated with the incurrence of debt to finance the expansion of the mining fleet and, to a lesser extent, a loss on sale of assets.
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Provision (benefit) for income taxes
The Company recognized an income tax provision of $0.1 million, or an effective tax rate of (0.3)% during the three months ended September 30, 2022 and a benefit for income taxes of $(5.0) million, or an effective tax rate of 38.7%, during the three months ended September 30, 2021. The effective tax rate for the three months ended September 30, 2022 was impacted by pretax losses with no associated income tax benefit as a result of a valuation allowance on net operating loss carryforwards. The effective income tax rates for the three months ended September 30, 2021 benefited from a higher tax base for the deductibility of the equity-based success fees associated with the Merger.
Net (loss) income
As a result of the factors described above, Greenidge incurred a net loss of $23.2 million for the three months ended September 30, 2022 as compared to a net loss of $7.9 million for the three months ended September 30, 2021.
On an adjusted basis, excluding the impact of merger and other costs and expansions costs, adjusted net (loss) income during the three months ended September 30, 2022 would have been $(22.0) million as compared to $12.2 million in the same period in 2021. Adjusted net (loss) income is a non-GAAP performance measure. A reconciliation of reported amounts to adjusted amounts can be found in the "Non-GAAP Measures and Reconciliations" section of this MD&A.
Segment Results of Operations - Three Months Ended September 30
The following summary of Segment revenue and Segment Adjusted EBITDA provides a basis for the discussion that follows. Greenidge evaluates the performance of its reportable segments based on Adjusted EBITDA, which excludes items not indicative of ongoing business trends. The reported amounts in the table below are from the Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income.
Three Months Ended
September 30,		Variance
$ in thousands20222021$%
REVENUE
Cryptocurrency Datacenter and Power Generation$21,885 $34,233 $(12,348)(36)%
Support Services7,474 1,521 5,953 391 %
Total Revenue$29,359 $35,754 $(6,395)(18)%
SEGMENT ADJUSTED EBITDA
Cryptocurrency Datacenter and Power Generation$(3,669)$20,973 $(24,642)N/A
Support Services1,381 204 1,177 577 %
Total Adjusted EBITDA$(2,288)$21,177 $(23,465)N/A
Reconciliation to loss before income taxes:
Depreciation and amortization(13,835)(2,667)
Stock-based compensation(361)(411)
Merger and other costs(242)(29,847)
Expansion costs(183)(128)
Interest expense, net(5,430)(1,009)
Loss on sale of assets(759)- 
Consolidated loss before income taxes$(23,098)$(12,885)
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Key Metrics

Cryptocurrency Datacenter and Power Generation Segment
The following table provides a summary of key metrics associated with the Cryptocurrency Datacenter and Power Generation segment.
Three Months Ended
September 30,		Variance
$ in thousands, except $ per MWh and average bitcoin price20222021$%
Cryptocurrency datacenter$18,272 $31,156 (12,884)(41)%
Power and capacity3,613 3,077 536 17 %
Total revenue$21,885 $34,233 (12,348)(36)%
MWh
Cryptocurrency datacenter158,04087,11170,929 81 %
Power and capacity33,26244,915(11,653)(26 %)
Revenue per MWh
Cryptocurrency datacenter$116 $358 $(242)(68 %)
Power and capacity$109 $69 $40 58 %
Cost of revenue (exclusive of depreciation and amortization)
Cryptocurrency datacenter$14,675 $5,974 $8,701 146 %
Power and capacity$3,760 $2,831 $929 33 %
Cost of revenue per MWh (exclusive of depreciation and amortization)
Cryptocurrency datacenter$93 $69 $24 35 %
Power and capacity$113 $63 $50 79 %
 
Cryptocurrency Datacenter Metrics
Bitcoins produced866 729 137 19 %
Average bitcoin price$21,269 $41,937 (20,668)(49 %)
Average hash rate (EH/s)115 %
Average difficulty83 %
Revenue
Cryptocurrency datacenter
For our cryptocurrency datacenter revenue, we generate electricity on-site from our power plant located at the New York Facility and use that electricityrelated to power ASIC miners, generating bitcoin that we then exchange for U.S. dollars. Our cryptocurrency datacenter revenue decreased by $12.9 million, or 41%, during the three months ended September 30, 2022 as compared to the prior year period. The decrease was primarily attributable to the 49% decline in average bitcoin price as compared to the prior year. This decrease was partially offset by an increase in hash rate from our increased mining fleet resulting in a 115% increase in the average hash rate during three months ended September 30,2023 and 2022. The increased average hash rate, partially offset by a higher average mining difficulty, led to us producing 866 bitcoins in the third quarter of 2022 as compared to 729 bitcoins in the third quarter of 2021. The increased number of bitcoins produced was more than offset by the 49% lower average bitcoin price in 2022, resulted in the decline in cryptocurrency datacenter revenue.
Three Months Ended September 30,Variance
$ in thousands, except $ per MWh and average bitcoin price20232022$%
Revenue
Datacenter hosting revenue$12,136 $— $12,136 N/A
Cryptocurrency mining revenue6,602 18,272 (11,670)(64)%
Power and capacity2,141 3,613 (1,472)(41)%
Total revenue$20,879 $21,885 $(1,006)(5)%
Components of revenue as % of total
Datacenter hosting58 %— %
Cryptocurrency mining32 %83 %
Power and capacity10 %17 %
Total revenue100 %100 %
MWh
Datacenter hosting187,843 — 187,843 N/A
Cryptocurrency mining66,502 158,041 (91,539)(58)%
Power and capacity46,008 33,262 12,746 38 %
Revenue per MWh
Datacenter hosting$65 $— $65 N/A
Cryptocurrency mining$99 $116 $(17)(15)%
Power and capacity$47 $109 $(62)(57)%
Cost of revenue (exclusive of depreciation)
Datacenter hosting$9,432 $— $9,432 N/A
Cryptocurrency mining$4,458 $14,675 $(10,217)(70)%
Power and capacity$1,465 $3,760 $(2,295)(61)%
Cost of revenue per MWh (exclusive of depreciation)
Datacenter hosting$50 $— $50 N/A
Cryptocurrency mining$67 $93 $(26)(28)%
Power and capacity$32 $113 $(81)(72)%
Cryptocurrency Mining Metrics
Bitcoins produced:
Datacenter hosting622—622 N/A
Cryptocurrency mining235866(631)(73)%
Total bitcoins produced857866(9)(1)%
Average bitcoin price$28,086 $21,269 $6,817 32 %
Average active hash rate (EH/s) (Hosted miners)2,829,274— 2,829,274 N/A
Average active hash rate (EH/s) (Company-owned miners)1,069,8162,149,893(1,080,077)(50)%
Average difficulty (in trillions of hash)53.8 T29.5 T24.3 T82 %

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Average bitcoin price is derived from the daily average bitcoin price reported by CoinMetrics, a leading provider of crypto financial intelligence.

Average hash rate is Greenidge’s average computing power over the period supplied to pool operators, which is measured using data from the pool operators.

Average difficulty is a measure of how difficult and time-consuming it is to find the right hash to solve the algorithm on the blockchain in order to receive a reward. Difficulty increases or decreases over time, depending on the amount of hashrate being provided to the network. It is the number of hashes it takes to solve the algorithm on the bitcoin blockchain. Our measure of Average difficulty is derived from the daily average difficulty reported by CoinMetrics, a leading provider of crypto financial intelligence.
Revenue

On January 30, 2023, upon entering into our hosting agreement with NYDIG, we transitioned the majority of the capacity of our owned datacenter facilities to datacenter hosting operations. We entered into hosting arrangements at third party sites for the majority of our remaining owned miners in the first and second quarters of 2023. We produced approximately 857 bitcoin during the third quarter of 2023, of which 622 bitcoin were produced by third-party miners through our datacenter hosting and 235 bitcoin were produced by our Greenidge owned miners through self-mining. At September 30, 2023, Greenidge datacenter operations consisted of approximately 42,300 miners with approximately 4.6 EH/s of combined capacity for both datacenter hosting and cryptocurrency mining, of which 32,100 miners, or 3.4 EH/s, is associated with datacenter hosting and 10,200 miners, or 1.2 EH/s, is associated with Greenidge's cryptocurrency mining.
Datacenter hosting revenue
On January 30, 2023, we entered into the NYDIG Hosting Agreement to provide datacenter hosting services. Under the NYDIG Hosting Agreements, we generate revenue from a reimbursement fee that covers the cost of power and direct costs associated with management of the mining facilities, a hosting fee and a gross profit-sharing arrangement. The arrangement covers the majority of our current mining capacity at our owned facilities. We generated hosting revenue of $12.1 million for the third quarter of 2023 for which there was no revenue in the comparable period of 2022.
Cryptocurrency mining revenue
For our cryptocurrency mining revenue, we generate revenue in the form of bitcoin by earning bitcoin as rewards and transaction fees for supporting the global bitcoin network with application-specific integrated circuit computers ("ASICs" or "miners") owned by the Company. Our cryptocurrency mining revenue decreased $11.7 million, or 64%, to $6.6 million. We estimate that approximately 43% of the decrease was due to the increase in the global bitcoin mining difficulty factor and that approximately 32% of the decrease was due to the transition of our owned site capacity to hosting. These declines were partially offset by the increase in the average price of bitcoin price during the period which contributed to a 9% increase to revenue. Our average hash rate decreased 50% primarily related to the reallocation of a significant majority of our datacenter infrastructure capacity to hosting services. Bitcoin mining difficulty was 82% higher compared to the prior period due to increases in the difficulty index associated with the complexity of the algorithmic solution required to create a block and receive a bitcoin award. The average bitcoin price was 32% higher as compared to the prior period.
Power and capacity revenue
Power and capacity revenue at our New York Facility is earned when we sell capacity and energy and ancillary services to the wholesale power grid managed by the NYISO.New York Independent System Operator ("NYISO"). Through these sales, we earn revenue in three streams:streams, including: (1) power revenue received based on the hourly price of power, (2) capacity revenue for committing to sell power to the NYISO when dispatched and (3) other ancillary service revenue received as compensation for the provision of operating reserves.
Our power and capacity revenue decreased $1.5 million, or 41%, to $2.1 million during the three months ended September 30, 2023. We estimate that higher volume increased $0.5revenues by approximately 38%, which was offset by lower prices that impacted the power and capacity revenues by approximately 79%. This was a result of 57% lower price per MWh sold to the power grid and a 38% increase in volume in third quarter of 2023, as compared to the prior period.
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Cost of revenue (exclusive of depreciation)
Three Months Ended September 30,Variance
20232022$%
Datacenter hosting$9,432 $— $9,432 N/A
Cryptocurrency mining4,458 14,675 (10,217)(70)%
Power and capacity1,465 3,760 (2,295)(61)%
Total cost of revenue (exclusive of depreciation)$15,355 $18,435 $(3,080)(17)%
As a percentage of total revenue73.5 %84.2 %
Total cost of revenue, exclusive of depreciation, decreased $3.1 million, or 17%, to $3.6$15.4 million during the third quarter of 2022three months ended September 30, 2023 as compared to the prior year period. Total cost of revenue, exclusive of depreciation, decreased approximately 51% due to lower natural gas input costs at the New York facility, as resultthe average cost of natural gas per dekatherm was approximately 79% lower than the prior year. This decrease was partially offset by an increase in selling price per MwH of 58% comparedcosts by approximately 20% due to the same periodmonthly hosting fees paid to 3rd parties for hosting company owned miners, which was a cost that did not occur in the prior year offset by a 26% declineperiod when all company owned miners were hashing at company owned sites, as well as 14% due to increases in MWhs provided to the power grid as compared to prior year.
Segment Adjusted EBITDA (loss)
Segment Adjusted EBITDA (loss) for the Cryptocurrency Datacenter and Power Generation segment decreased to $(3.7) million for the third quarter 2022 from $21.0 million in the third quarter of 2021. The variance was driven by the decline in the price of bitcoin and increase in natural gaselectricity input costs partially offset byin South Carolina as a result of the increased bitcoinSouth Carolina Facility expansion.
The significant portions of Cost of revenue are allocated between datacenter hosting, cryptocurrency mining hash rate.
Cryptocurrency datacenter revenue per MWh and power and capacity revenue perbased on MWh are used by management to consider the extent to which it will generate electricity to either produce cryptocurrency or sell power to the New York wholesale power market.each. Power and capacity Cost of revenue (excluding depreciationalso declined due to lower sales volume, while MWh utilized by cryptocurrency mining declined due a larger portion of mining capacity used for Hosting during the three months ended September 30, 2023. Costs paid to third party hosting sites are all allocated to cryptocurrency mining.
Selling, general and amortization) per MWh represents a measureadministrative expenses
Selling, general and administrative expenses decreased $1.1 million, or 14%, to $6.7 million for the three months ended September 30, 2023 as compared to the prior year period. The main driver of the cost of natural gas, emissions credits,decrease in selling, general and administrative expenses was a decrease in payroll and benefits and other direct productionemployee-related costs associatedof approximately $0.7 million.
Depreciation
Depreciation expense decreased $10.1 million, or 75%, to $3.4 million for the three months ended September 30, 2023 as compared to the prior year period due to a lower asset base resulting from impairments recognized in 2022 and the sale of miners in early 2023.
Operating (loss) income from continuing operations
We reported an operating loss for the three months ended September 30, 2023 of $10.1 million compared with the MWhs produced to generate the respective revenue category for each MWh utilized. Depreciation and amortization costs are excluded from the costan operating loss of revenue (exclusive of depreciation and amortization) per MWh metric; therefore, not all cost of revenues for cryptocurrency datacenter and power and capacity are fully reflected. To the extent any other cryptocurrency datacenters are public or may go public, the cost of revenue (exclusive of depreciation and amortization) per MWh metric may not be comparable because some competitors may include depreciation in their cost of revenue figures.
Support Services Segment
Greenidge acquired Support.com, which constitutes the Support Services segment as of close of business on September 14, 2021. As such, there were only 16 days of operations included in our consolidated results in the third quarter of 2021. Support Services had revenue of $7.5 million and Segment Adjusted EBITDA of $1.4$18.6 million in the three months ended September 30, 2022. The favorable variance of $8.5 million is primarily related to lower cost of revenue, selling, general and administrative costs, partially offset by lower revenue, in the aggregate, from hosting, mining and power operations.
The contract associated with the Support Services segment's largest customer, which accounted for approximately 19% of the Company's consolidated revenue during the three months ended September 30, 2022, expires on December 31, 2022 and has not been renewed beyond that date. This customer also accounted for 73% of Support Service's segment revenueAdjusted operating loss from continuing operations was $3.9 million for the three months ended September 30, 2022. During the fourth quarter of 2022, the Company will review the goodwill and other intangible assets totaling $5.9 million2023 as of September 30, 2022 for impairment in light of this contract not being renewed beyond December 31, 2022.

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Results of Operations - Nine Months Ended September 30
The following table sets forth key components of the results ofcompared to adjusted loss from operations of Greenidge during$17.7 million in the ninethree months ended September 30, 2022. The decrease in the adjusted loss from operations was primarily driven by lower cost of revenue due to lower input costs, primarily the cost of natural gas, and lower depreciation due to the lower asset base following the impairments recorded in Q4 2022 and 2021.
Nine Months Ended
September 30,		Variance
$ in thousands20222021$%
Total revenue$98,353 $62,993 $35,360 56 %
Cost of revenue (exclusive of depreciation and amortization shown below)57,054 19,046 38,008 200 %
Selling, general and administrative expenses35,720 12,017 23,703 197 %
Merger and other costs940 31,095 (30,155)(97 %)
Depreciation and amortization22,680 5,531 17,149 310 %
Impairment of long-lived assets71,500 — 71,500 N/A
Remeasurement of environmental liability11,109 — 11,109 N/A
(Loss) income from operations(100,650)(4,696)(95,954)2043 %
Other (expense) income:
Interest expense, net(15,693)(1,377)(14,316)(1040)%
Interest expense - related party— (22)22 N/A
(Loss) gain on sale of digital assets(15)159 (174)N/A
Loss on sale of assets(130)— (130)N/A
Other income, net200 (23)223 N/A
Total other expense, net(15,638)(1,263)(14,375)(1138 %)
(Loss) income before income taxes(116,288)(5,959)(110,329)(1851)%
Provision (benefit) for income taxes15,200 (2,860)18,060 N/A
Net (loss) income$(131,488)$(3,099)$(128,389)(4143 %)
Adjusted Amounts (a)
Adjusted (loss) income from operations$(14,726)$26,527 $(41,253)N/A
Adjusted operating margin(15.0)%42.1 %
Adjusted net (loss) income$(30,378)$17,868 $(48,246)N/A
Other Financial Data (a)
EBITDA (loss)$(77,915)$971 $(78,886)N/A
as a percent of revenues(79.2 %)1.5 %
Adjusted EBITDA$9,168 $33,668 $(24,500)(73 %)
as a percent of revenues9.3 %53.4 %
(a)Adjusted Amounts and Other Financial Data are non-GAAP performance measures.the sale of assets in Q1 2023. A reconciliation of reported amounts to adjusted amounts can be found in the "Non-GAAP Measures and Reconciliations" section of this MD&A.
Total other expense, net
During the three months ended September 30, 2023, other expense decreased by $2.3 million, or 43%, to $3.0 million primarily from a decrease in interest expense of $2.4 million, due to lower debt balances in 2023 compared to 2022.
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RevenueBenefit from income taxes
Nine Months Ended
September 30,		Variance
$ in thousands20222021$%
Cryptocurrency datacenter$61,571 $54,217 $7,354 14 %
Power and capacity12,395 7,255 5,140 71 %
Services and other24,387 1,521 22,866 1503 %
Total revenue$98,353 $62,993 $35,360 56 %
The components of revenue, expressed as a percentage of total revenue were:
Nine Months Ended
September 30,
20222021
Cryptocurrency datacenter62 %86 %
Power and capacity13 %12 %
Services and other25 %2 %
Total revenue100 %100 %
Total revenue increased $35.4 million, or 56%, to $98.4 million duringOur effective tax rate for the ninethree months ended September 30, 2023 and 2022 as compared towas 0%, which was lower than the prior year period. The increase in revenue was due to the following:
•The revenue from our cryptocurrency datacenter operations increased $7.4 million, or 14%, to $61.6 million primarily due to higher mining capacity resulting in an increasestatutory rate of in total bitcoin mined of 63% and a hash rate increase of 166% . This increase was offset by lower average bitcoin prices, with prices decreasing by 29% compared to prior year and, to a lesser extent, increased difficulty rates.
•Power and capacity revenue increased $5.1 million, or 71%, to $12.4 million due to an increase in selling price per MWh of 89% offset by a 10% decline in MWh capacity sold to the power grid.
•The Services and other segment included21% because we have a full nine months of operations in 2022 comparedvaluation allowance on deferred tax assets. We recorded and will continue to 16 days of operations in 2021 followingcarry a full valuation allowance against our gross deferred tax assets that will not reverse against deferred tax liabilities within the acquisition on September 14, 2021. This resulted in an increase in revenue of $22.9 million, or 1503%, to $24.4 million during the nine months ended September 30, 2022.
Refer to the "Segment Results of Operations - Nine Months Ended September 30" of this MD&A for a more detailed discussion of revenues from the Cryptocurrency Datacenter and Power Generation segment and the Support Services segment.
Cost of revenue (exclusive of depreciation and amortization)
Nine Months Ended
September 30,		Variance
$ in thousands20222021$%
Cryptocurrency datacenter$34,795 $11,504 $23,291 202 %
Power and capacity10,955 6,688 4,267 64 %
Services and other11,304 854 10,450 1224 %
Total cost of revenue$57,054 $19,046 $38,008 200 %
As a percentage of total revenue58.0 %30.2 % 
Total cost of revenue, exclusive of depreciation and amortization, increased $38.0 million, or 200%, to $57.1 million in the nine months ended September 30, 2022 as compared to the prior year period. The following were the main contributors to the increase in cost of revenue:
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•The cost of revenue per MWh (exclusive of depreciation and amortization) increased for both cryptocurrency datacenter and power and capacity operations due to a significant increase in the natural gas cost per dekatherm, which increased approximately 121% in the nine months ended September 30, 2022 as compared to the same period of 2021.
•Cryptocurrency datacenter cost of sales also increased as a result of a 91% increase in overall MWh usage due to the increased mining fleet, including the South Carolina expansion which began in Q4 2021.
•Services and other cost of revenue increased $10.5 million, or 1224%, to $11.3 million for the nine months ended September 30, 2022 as compared to the prior year period primarily resulting from inclusion of the full nine months of operations of Support.com in 2022 compared to only 16 days of operations included in the comparable period of the prior year.
Total cost of revenue as a percentage of total revenue increased primarily due to the impact of the higher cost of natural gas combined with the lower price of bitcoin on the Cryptocurrency Datacenter and Power Generation segment.
Selling, general and administrative expenses
Selling, general and administrative expenses increased $23.7 million, or 197%, to $35.7 million for the nine months ended September 30, 2022 as compared to the prior year period. The main drivers of the increase in selling, general and administrative expenses were:
•Total employee-related costs increased $4.9 million, or 258%, as a result of increased headcount, including the addition and expansion of executive level positions required to operate as a public company as well as increases in order to match the growth in the operational footprint of the business.
•Increased legal and professional fees of $7.6 million, or 436%, due to increased legal and regulatory costs associated with permit renewals and environmental matters at the New York plant, legal and consulting costs associated with potential expansion opportunities and other accounting and consulting fees associated with being a public company.
•Increased Insurance costs of $3.6 million, or 325%, due to increased premiums for new policies entered into at the time of the merger as well as increased premiums on property insurance as a result of 2022 capital expenditures and the addition of the South Carolina facility in Q4 2021, increasing the asset base.
•The Support Services segment added $7.6 million to Selling, general and administrative expenses for the nine months ended September 30, 2022 due to inclusion of the full nine months of operations of Support.com in 2022 compared to only 16 days of operations included in the comparable period of the prior year.
Merger and other costs
Merger and other costs decreased $30.2 million, or 97%, to $0.9 million resulting from costs associated with the Merger, as well as professional and other fees associated with becoming a publicly traded company during 2021.
Depreciation and amortization
Depreciation and amortization increased $17.1 million, or 310%, to $22.7 million for the nine months ended September 30, 2022 as compared to the prior year period primarily due to the purchase and deployment of additional miners. Additionally, the Merger contributed $1.0 million of depreciation and amortization for the nine months ended September 30, 2022 as compared to the prior yearscheduled reversal period.
Impairment of long-lived assetsNet loss from continuing operations
As a result of the significant reduction infactors described above, Greenidge incurred a net loss from continuing operations of $13.2 million for the price of bitcoin and increased energy prices during the ninethree months ended September 30, 2022, the Company recognized2023 as compared to a nonrecurring, noncash impairmentnet loss from continuing operations of $71.5$23.9 million for the assets associated with the Cryptocurrency Datacenter and Power Generation segment to reduce the net book value of the long-lived assets to fair value. Fair value was determined utilizing the market approach. The excess of the book value over the fair value was allocated to the long-lived assets of the Cryptocurrency and Power Generation segment.
33


As a result of the impairment assessment, the Company has reevaluated the useful lives of the long-lived assets and adjusted the lives of the miners from 5 to 3 years and the lives of plant infrastructure from 15 - 39 years to 10 years effective July 1, 2022.
Remeasurement of environmental liabilities
During the ninethree months ended September 30, 2022,2022.
On an adjusted basis, excluding the Company recognizedimpact of a chargegain on sale of $11.1 million forassets and restructuring costs, adjusted net loss during the remeasurement of an environmental liability as a result of an update in the cost estimates associated to CCR liabilities associated with the Company's New York Facility as part of our continuing evaluation of the site.
Income (loss) from operations
Greenidge reported loss from operations of $100.7 million for the ninethree months ended September 30, 20222023 would have been $6.9 million as compared to a$23.0 million in the same period in 2022. The decrease in the adjusted net loss from continuing operations of $4.7 million for the nine months ended September 30, 2021. The increase in loss from operations during the nine months ended September 30, 2022, was driven primarily by the nonrecurring, noncash charge of $71.5 million for the impairment of long-lived assets and the $11.1 milliona decrease in interest expense for the remeasurement of an environmental liability, as well as higher depreciation and amortization.
Adjusted loss from operations was $14.7 million for the nine months ended September 30, 2022, compared to adjusted income from operations of $26.5 million for the nine months ended September 30, 2021. The $41.3 million unfavorable variance is primarily attributable to higher costs of revenues relative to revenue due to the increased cost of natural gas combined with the declinelower debt balances in the price of bitcoin. Additionally, adjusted income (loss) from operations declined due to higher depreciation and amortization. These negative impacts on Adjusted income (loss) from operations were2023, partially offset by the increased bitcoin mining hash rate.same factors discussed above in Operating (loss) income from continuing operations. Adjusted incomenet loss from continuing operations is a non-GAAP performance measure. A reconciliation of reported amounts to adjusted amounts can be found in the "Non-GAAP Measures and Reconciliations" section of this MD&A.
Other expense,Income (loss) from discontinued operations
We have reported the Support.com business as discontinued operations in the consolidated financial statements. Income from discontinued operations, net
During of tax decreased $1.8 million, or 246%, to a $1.1 million loss for the ninethree months ended September 30, 2022 as compared to the prior period, Other expense, net increased $14.4 million primarily due to increased interest expense associated with the incurrence of debt to finance the expansion of the mining fleet.
Provision (benefit) for income taxes
2023. The Company recognized an income tax provision of $15.2 million, or an effective tax rate of (13.1)%, during the nine months ended September 30, 2022 and a benefit for income taxes of $2.9 million, or an effective tax rate of 48.0%, during the nine months ended September 30, 2021 due to the recording of a $15.0 million charge for a valuation allowance during the nine months ended September 30, 2022 for the deferred tax assets. This wasdecrease primarily related to historical netlower operating loss carryforwards of the Support.com business that was acquired in 2021, reduced profitabilityincome caused by the declines in the price of bitcoin and increased power costs. The effective tax rates for the nine months ended September 30, 2021 include the recognition of a deferred tax liability caused by the reorganization from an LLC to a corporation during the three months ended March 31, 2021.
Net (loss) income
As a result of the factors described above, Greenidge incurred a net loss of $131.5 million for the nine months ended September 30,Support.com's largest customer in 2022 as compared to a net loss of $3.1 million for the nine months ended September 30, 2021.
On an adjusted basis, excluding the after-tax impact of the impairment of long-lived assets, the remeasurement of environmental liabilities, merger and other costs, expansions costs and the tax charge for the recognition of a valuation allowance on deferred tax assets, adjusted net (loss) income during the nine months ended September 30, 2022 would have been $30.4 million as compared to $17.9 million in the same period in 2021. Adjusted net (loss) income is a non-GAAP performance measure. A reconciliation of reported amounts to adjusted amounts can be found in the "Non-GAAP Measures and Reconciliations" section of this MD&A.
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Segment Results of Operations - Nine Months Ended September 30
The following summary of Segment revenue and Segment Adjusted EBITDA provides a basis for the discussion that follows. Greenidge evaluates the performance of its reportable segments based on Adjusted EBITDA, which excludes items not indicative of ongoing business trends. The reported amounts in the table below are from the Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income.
Nine Months Ended
September 30,		Variance
$ in thousands20222021$%
REVENUE
Cryptocurrency Datacenter and Power Generation$73,966 $61,472 $12,494 20 %
Support Services24,387 1,521 22,866 1503 %
Total Revenue$98,353 $62,993 $35,360 56 %
SEGMENT ADJUSTED EBITDA
Cryptocurrency Datacenter and Power Generation$3,886 $33,464 $(29,578)(88 %)
Support Services5,282 204 5,078 2489 %
Total Adjusted EBITDA$9,168 $33,668 $(24,500)(73 %)
Reconciliation to loss before income taxes:
Depreciation and amortization(22,680)(5,531)
Stock-based compensation(1,029)(1,474)
Merger and other costs(940)(31,095)
Expansion costs(2,375)(128)
Interest expense, net(15,693)(1,399)
Loss on sale of assets(130)— 
Long-lived asset impairment(71,500)— 
Remeasurement of environmental liabilities(11,109)— 
Consolidated loss before income taxes$(116,288)$(5,959)
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Cryptocurrency Datacenter and Power Generation Segment
The following table provides a summary of key metrics associated with the Cryptocurrency Datacenter and Power Generation segment.
Revenue
$ in thousands, except $ per MWh
and average bitcoin price		Nine Months Ended
September 30,		Variance
20222021$%
Cryptocurrency datacenter$61,571 $54,217 $7,354 14 %
Power and capacity12,395 7,255 5,140 71 %
Total revenue$73,966 $61,472 $12,494 20 %
MWh
Cryptocurrency datacenter380,432199,200181,23291 %
Power and capacity114,322126,990(12,668)(10 %)
Revenue per MWh
Cryptocurrency datacenter$162 $272 $(110)(40 %)
Power and capacity$108 $57 $51 89 %
Cost of revenue (exclusive of depreciation and amortization)
Cryptocurrency datacenter$34,795 $11,504 $23,291 202 %
Power and capacity$10,955 $6,688 $4,267 64 %
Cost of revenue per MWh (exclusive of depreciation and amortization)
Cryptocurrency datacenter$91 $58 $33 57 %
Power and capacity$96 $53 $43 82 %
Cryptocurrency Datacenter Metrics
Bitcoins produced2,048 1,257 791 63 %
Average bitcoin price$31,666 $44,614 $(12,948)(29 %)
Average hash rate (EH/s)166 %
Average difficulty45 %
Cryptocurrency datacenter
For its cryptocurrency datacenter revenue, we generate electricity on-site from our power plant located at the New York Facility and use that electricity to power ASIC miners, generating bitcoin that we then exchange for U.S. dollars or hold in our wallet. Our cryptocurrency datacenter revenue increased by $7.4 million, or 14%, during the nine months ended September 30, 2022 as compared to the prior period. The increase was attributable to our increased mining fleet resulting in a 166% increase in the average hash rate during the nine months ended September 30, 2022. The increased average hash rate, partially offset by a higher average mining difficulty, led to us producing 2,048 bitcoins in the first nine months of 2022 as compared to 1,257 bitcoins in the first nine months of 2021. Revenue increases as a result of increased mining volume were offset by the 29% lower average bitcoin price in 2022.
Power and capacity
Power and capacity revenue at our New York Facility is earned when we sell capacity and energy and ancillary services to the wholesale power grid managed by the NYISO. Through these sales, we earn revenue in three streams, including: (1) power revenue received based on the hourly price of power, (2) capacity revenue for committing to sell power to the
36


NYISO when dispatched and (3) other ancillary service revenue received as compensation for the provision of operating reserves. Our power and capacity revenue increased $5.1 million, or 71%, to $12.4 million during the first nine months of 2022. This was a result of 89% higher price per MWh sold to the power grid in 2022, as compared to the prior period, partially offset by a 10% decline in volume as more MWh were utilized by the Cryptocurrency datacenter. Due to more severe weather in the month of January 2022 as compared to 2021, we curtailed cryptocurrency datacenter operations at the New York Facility for a period of time when there was a spike in power demand, which coincided with higher prices for electricity. This January revenue accounted for approximately 37% of the increase in Power capacity revenue for first nine months of 2022 as compared to the prior period.
Segment Adjusted EBITDA
Segment Adjusted EBITDA for the Cryptocurrency Datacenter and Power Generation segment decreased to $3.9 million for the first nine months of 2022 from $33.5 million in the first nine months of 2021. The decrease in Segment Adjusted EBITDA was driven by the increased cost of natural gas and lower price of bitcoin, partially offset by the higher bitcoin mining hash rate.
Cryptocurrency datacenter revenue per MWh and power and capacity revenue per MWh are used by management to consider the extent to which it will generate electricity to either produce cryptocurrency or sell power to the New York wholesale power market. Cost of revenue (excluding depreciation and amortization) per MWh represents a measure of the cost of natural gas, emissions credits, payroll and benefits and other direct production costs associated with the MWhs produced to generate the respective revenue category for each MWh utilized. Depreciation and amortization costs are excluded from the cost of revenue (exclusive of depreciation and amortization) per MWh metric; therefore, not all cost of revenues for cryptocurrency datacenter and power and capacity are fully reflected. To the extent any other cryptocurrency datacenters are public or may go public, the cost of revenue (exclusive of depreciation and amortization) per MWh metric may not be comparable because some competitors may include depreciation in their cost of revenue figures.
Support Services Segment
Greenidge acquired Support.com, which constitutes the Support Services segment as of close of business on September 14, 2021. As such, there were only 16 dayswinding down of operations included in our consolidated results in the first nine months of 2021. Support Services had revenue of $24.4 million and Segment Adjusted EBITDA of $5.3 million in the nine months ended September 30, 2022.
The contract associated with the Support Services segment's largest customer, which accounted for approximately 19% of the Company's consolidated revenue during the nine months ended September 30, 2022, expires on December 31, 2022, and has not been renewed beyond that date. This customer also accounted for 73% of Support Service's segment revenue for the nine months ended September 30, 2022.
Critical Accounting Policies and Estimates
The most significant accounting estimates involve a high degree of judgment or complexity. Management believes the estimates and judgments most critical to the preparation of our condensed consolidated financial statements and to the understanding of our reported financial results include those made in connection with goodwill and intangible assets, accounts receivable, digital assets, emissions expense and credits, environmental and asset retirement obligations and revenue recognition. Management evaluates its policies and assumptions on an ongoing basis.
Our significant accounting policies related to these accounts in the preparation of our condensed consolidated financial statements are described under the heading “Management Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies and Estimates” in our Annual Report on Form 10-K for the year ended December 31, 2021. As of the date of this filing, there were no significant changes to any of the critical accounting policies and estimates previously described in our Annual Report on Form 10-K for the year ended December 31, 2021 with the exception of those described below.
Environmental Obligations
The Company has coal combustion residual liabilities associated with the closure of a coal ash pond located on the Company's property in the Town of Torrey, New York. In accordance with ASC 410-30, the Company has a liability of
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$13.8 million as of September 30, 2022, which includes a charge of $11.1 million during the nine months ended September 30, 2022 as a result of an update to the cost estimates as part of the Company's ongoing evaluation of the site. Estimates are based on various assumptions including, but not limited to, closure and post-closure cost estimates, timing of expenditures, escalation factors, and requirements of granted permits. Additional adjustments to the environment liability may occur periodically due to potential changes in remediation requirements regarding coal combustion residuals which may lead to material changes in estimates and assumptions.
Long-lived Assets
The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. To determine recoverability of a long-lived asset, management evaluates whether the estimated future undiscounted net cash flows from the asset are less than its carrying amount. If impairment is indicated, the long-lived asset would be written down to fair value.
As a result of the significant reduction in the price of bitcoin and increased energy prices during the nine months ended September 30, 2022, the Company recognized a noncash impairment charge of $71.5 million for the assets associated with the Cryptocurrency Datacenter and Power Generation segment to reduce the net book value of the long-lived assets to fair value. Fair value was based upon a market approach. The excess of the book value over the estimated fair value was allocated to the long-lived assets of the Cryptocurrency and Power Generation segment.Q3 2023.
Non-GAAP Measures and Reconciliations
The following non-GAAP measures are intended to supplement investors'investors’ understanding of our financial information by providing measures which investors, financial analysts and management use to help evaluate our operating performance. Items which we do not believe to be indicative of ongoing business trends are excluded from these calculations so that investors can better evaluate and analyze historical and future business trends on a consistent basis. Definitions of these non-GAAP measures may not be comparable to similar definitions used by other companies. These results should be considered in addition to, not as a substitute for, results reported in accordance with GAAP.United States Generally Accepted Accounting Principles ("U.S. GAAP").

Adjusted operating (loss) income from continuing operations, Adjusted net loss from continuing operations, EBITDA (loss) from continuing operations and Adjusted EBITDA (loss) from continuing operations

Adjusted operating (loss) income from continuing operations” is defined as Operating(loss) income from continuing operations adjusted for special items determined by management, including, but not limited to business expansion costs, impairments of long-lived assets, remeasurement of environmental liabilities and restructuring as they are not indicative of business operations.“EBITDA”Adjusted net (loss) income from continuing operations” is defined as Net (loss) income from continuing operations adjusted for the after-tax impact of special items determined by management, including, but not limited to business expansion costs, impairments of long-lived assets, remeasurement of environmental liabilities and restructuring as they are not indicative of business operations."EBITDA from continuing operations" is defined as earnings from continuing operations before taxes, interest, taxes, and depreciation and amortization. “Adjusted EBITDA”"Adjusted EBITDA from continuing operations" is defined as EBITDA from continuing operations adjusted for stock-based compensation and other special items determined by management, including, but not limited to costs associated with the Merger, costs of becoming a public company (which included the costs of corporate reorganization from a limited liability company, public registration of shares and associated costs), business expansion costs, fair value adjustments for certain financial liabilities (including asset retirement obligations),gain on sale of assets and debt restructuring costs associated with debt and equity transactions, and impairment charges as they are not indicative of business operations. Adjusted operating (loss) income from continuing operations, Adjusted net (loss) income from continuing operations,EBITDA isfrom continuing operations and Adjusted EBITDA from continuing operations are intended as a supplemental measuremeasures of our performance that isare neither required by, nor presented in accordance with, U.S. GAAP. Management believes that the use of Adjusted operating (loss) income from continuing operations, Adjusted net (loss) income from continuing operations,EBITDA from continuing operations and Adjusted EBITDA from continuing operations provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with those of comparable companies, which may present similar non-GAAP financial measures to investors. However, you should be aware that when evaluating Adjusted operating (loss) income from continuing operations, Adjusted net (loss) income from continuing operations, EBITDA from
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continuing operations and Adjusted EBITDA from continuing operations, we may incur future expenses similar to those excluded when calculating these measures. In addition, our presentation of these measures should not be construed as an inference that its future results will be unaffected by unusual or non-recurring items. Our computation of Adjusted operating (loss) income from continuing operations, Adjusted net (loss) income from continuing operations and Adjusted EBITDA from continuing operations may not be comparable to other similarly titled measures computed by other companies, because all companies may not calculate Adjusted operating (loss) income from continuing operations, Adjusted net (loss) income from continuing operations and Adjusted EBITDA from continuing operations in the same fashion.

Because of these limitations, Adjusted operating (loss) income from continuing operations, Adjusted net (loss) income from continuing operations, EBITDA from continuing operations and Adjusted EBITDA from continuing operations should not be considered in isolation or as a substitute for performance measures calculated in accordance with U.S. GAAP. We compensate for these limitations by relying primarily on our U.S. GAAP results and using Adjusted operating (loss) income from continuing operations, Adjusted net (loss) income from continuing operations, EBITDA from continuing operations and Adjusted EBITDA from continuing operations on a supplemental basis. You should review the reconciliationreconciliations of
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Operating loss from continuing operations to Adjusted operating loss from continuing operations, Net loss from continuing operations to Adjusted net loss (income)from continuing operations and net (loss) income from continuing operations to EBITDA (loss) from continuing operations and Adjusted EBITDA abovefrom continuing operations below and not rely on any single financial measure to evaluate our business. The reported amounts in the table below are from our Unaudited Condensed Consolidated Statements of Operations in our Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q.
Three Months Ended
September 30,		Nine Months Ended
September 30,
$ in thousands2022202120222021
Adjusted operating income (loss)
(Loss) income from operations$(17,053)$(11,865)$(100,650)$(4,696)
Merger and other costs242 29,847 940 31,095 
Expansion costs183 128 2,375 128 
Impairment of long-lived assets— — 71,500 — 
Remeasurement of environmental liability— — 11,109 — 
Adjusted (loss) income from operations$(16,628)$18,110 $(14,726)$26,527 
Adjusted operating margin(56.6 %)50.7 %(15.0)%42.1 %
Adjusted net (loss) income
Net loss$(23,177)$(7,896)$(131,488)$(3,099)
Merger and other costs, after tax242 19,969 940 20,874 
Expansion costs, after tax183 93 2,375 93 
Loss on sale of assets, after tax759 — 130 — 
Impairment of long-lived assets, after tax— — 71,500 — 
Remeasurement of environmental liability, after tax— — 11,109 — 
Tax charge for valuation allowance— — 15,056 — 
Adjusted net (loss) income$(21,993)$12,166 $(30,378)$17,868 
EBITDA (loss) and Adjusted EBITDA (loss)
Net loss$(23,177)$(7,896)$(131,488)$(3,099)
Provision for income taxes79 (4,989)15,200 (2,860)
Interest expense, net5,430 1,009 15,693 1,399 
Depreciation and amortization13,835 2,667 22,680 5,531 
EBITDA (loss)(3,833)(9,209)(77,915)971 
Stock-based compensation361 411 1,029 1,474 
Merger and other costs242 29,847 940 31,095 
Expansion costs183 128 2,375 128 
Loss on sale of assets759 — 130 — 
Impairment of long-lived assets— — 71,500 — 
Remeasurement of environmental liability— — 11,109 — 
Adjusted EBITDA (loss)$(2,288)$21,177 $9,168 $33,668 
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Three Months Ended September 30,Variance
20232022$%
Adjusted operating loss from continuing operations
Operating loss from continuing operations$(10,121)$(18,609)$8,488 (46)%
Expansion costs— 183 (183)— (100)%
Loss on sale of assets— 759 (759)— (100)%
Impairment of long-lived assets4,000 — 4,000 N/A
Remeasurement of environmental liability1,600 — 1,600 N/A
Restructuring costs669 — 669 N/A
Adjusted operating loss from continuing operations$(3,852)$(17,667)$13,815 (78)%
Adjusted operating margin(18.4 %)(80.7 %)
Adjusted net loss from continuing operations
Net loss from continuing operations$(13,161)$(23,913)$10,752 (45)%
Impairment of long-lived assets4,000 — 4,000 N/A
Expansion costs, after tax— 183 (183)(100)%
Loss on sale of assets, after tax— 759 (759)(100)%
Remeasurement of environmental liability, after tax1,600 — 1,600 N/A
Restructuring costs, after tax669 — 669 N/A
Adjusted net loss from continuing operations$(6,892)$(22,971)$16,079 (70)%
EBITDA (loss) and Adjusted EBITDA (loss) from continuing operations
Net loss from continuing operations$(13,161)$(23,913)10,752 (45)%
Interest expense, net3,040 5,430 (2,390)(44)%
Depreciation3,383 13,511 (10,128)— (75)%
EBITDA (loss) from continuing operations(6,738)(4,972)(1,766)36 %
Stock-based compensation482 361 121 34 %
Loss on sale of assets— 759 (759)(100)%
Impairment of long-lived assets4,000 — 4,000 N/A
Remeasurement of environmental liability, after tax1,600 — 1,600 N/A
Restructuring costs669 — 669 N/A
Expansion costs— 183 (183)(100)%
Adjusted EBITDA (loss) from continuing operations$13 $(3,669)$3,682 (100)%
Revenue per MWh for datacenter hosting, cryptocurrency mining and power and capacity are used by management to consider the extent to which we may generate electricity to either produce cryptocurrency or sell power to the New York wholesale power market. Cost of revenue (excluding depreciation) per MWh represents a measure of the cost of natural gas, emissions credits, payroll and benefits and other direct production costs associated with the MWhs produced to generate the respective revenue category for each MWh utilized. Depreciation expense is excluded from the cost of revenue (exclusive of depreciation) per MWh metric; therefore, not all cost of revenues for datacenter hosting, cryptocurrency mining and power and capacity are fully reflected. To the extent any other cryptocurrency datacenters are public or may go public, the cost of revenue (exclusive of depreciation) per MWh metric may not be comparable because some competitors may include depreciation in their cost of revenue figures.

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Results from Continuing Operations - Nine Months Ended September 30,
The following table sets forth key components of our results from continuing operations and should be read in conjunction with our condensed consolidated financial statements and related notes. All comparisons below refer to the nine months ended September 30, 2023 versus the first Nine Months Ended September 30, 2022, unless otherwise specified.
Nine Months Ended September 30,Variance
20232022$%
REVENUE:
Datacenter hosting revenue$28,740 $— $28,740 N/A
Cryptocurrency mining revenue17,033 61,571 (44,538)(72)%
Power and capacity4,973 12,395 (7,422)(60)%
Total revenue50,746 73,966 (23,220)(31)%
OPERATING COSTS AND EXPENSES:
Cost of revenue (exclusive of depreciation)36,231 45,751 (9,520)(21)%
Selling, general and administrative22,724 27,889 (5,165)(19)%
Depreciation10,368 21,701 (11,333)(52)%
Loss (gain) on sale of assets(1,752)130 (1,882)(1448)%
Impairment of long-lived assets4,000 71,500 (67,500)N/A
Remeasurement of environmental liability1,600 11,109 (9,509)N/A
Total operating costs and expenses73,171 178,080 (104,909)(59)%
Operating loss(22,425)(104,114)81,689 (78)%
OTHER EXPENSE, NET:
Interest expense, net(9,725)(15,692)5,967 (38)%
Gain (loss) on sale of digital assets398 (15)413 (2753)%
Other income (expense), net(4)164 (168)(102)%
Total other expense, net(9,331)(15,543)6,212 (40)%
Loss from continuing operations before income taxes(31,756)(119,657)87,901 (73)%
Provision for income taxes— 15,038 (15,038)(100)%
Net loss from continuing operations$(31,756)$(134,695)$102,939 (76)%
Adjusted Amounts (a)
Adjusted operating loss from continuing operations$(15,746)$(19,000)3,254 (17)%
Adjusted operating margin from continuing operations(31.0)%(25.7)%
Adjusted net loss from continuing operations$(25,077)$(36,629)11,552 (32)%
Other Financial Data (a)
EBITDA (loss) from continuing operations$(11,663)$(82,264)70,601 (86)%
as a percent of revenues(23.0)%(111.2)%
Adjusted EBITDA (loss) from continuing operations$(3,453)$3,879 (7,332)(189)%
as a percent of revenues(6.8)%5.2 %
(a)Adjusted Amounts and Other Financial Data are non-GAAP performance measures. A reconciliation of reported amounts to adjusted amounts can be found in the "Non-GAAP Measures and Reconciliations" section of this Management's Discussion and Analysis ("MD&A").

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Key Metrics
The following table provides a summary of key metrics related to the nine months ended September 30, 2023 and 2022.
Nine Months Ended September 30,Variance
$ in thousands, except $ per MWh and average bitcoin price20232022$%
Datacenter hosting revenue$28,740 $— $28,740 N/A
Cryptocurrency mining revenue17,033 61,571 $(44,538)(72)%
Power and capacity4,973 12,395 (7,422)(60)%
Total revenue$50,746 $73,966 $(23,220)(31)%
Components of revenue as % of total
Datacenter hosting57 %— %
Cryptocurrency mining33 %83 %
Power and capacity10 %17 %
Total revenue100 %100 %
MWh
Datacenter hosting413,983 — 413,983 N/A
Cryptocurrency mining161,285 380,432(219,147)(58)%
Power and capacity99,723 114,322(14,599)(13)%
Revenue per MWh
Datacenter hosting$69 $— $69 N/A
Cryptocurrency mining$106 $162 $(56)(35)%
Power and capacity$50 $108 $(58)(54)%
Cost of revenue (exclusive of depreciation)
Datacenter hosting$20,830 $— $20,830 N/A
Cryptocurrency mining$10,639 $34,796 $(24,157)(69)%
Power and capacity$4,762 $10,955 $(6,193)(57)%
Cost of revenue per MWh (exclusive of depreciation)
Datacenter hosting$50 $— $50 N/A
Cryptocurrency mining$66 $91 $(25)(27)%
Power and capacity$48 $96 $(48)(50)%
Cryptocurrency Mining Metrics
Bitcoins produced:
Datacenter hosting1,541—1,541 N/A
Cryptocurrency mining6842,048(1,364)(67)%
Total bitcoins produced2,2252,048177 9 %
Average bitcoin price26,35031,666(5,316)(17)%
Average active hash rate (EH/s) (Hosted miners)2,113,051— 2,113,051 N/A
Average active hash rate (EH/s) (Company-owned miners)882,1301,688,236(806,106)(48)%
Average difficulty47.9 T28.6 T19.3 T67 %


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Average bitcoin price is derived from the daily average bitcoin price reported by CoinMetrics, a leading provider of crypto financial intelligence.

Average hash rate is Greenidge’s average computing power over the period supplied to pool operators, which is measured using data from the pool operators.

Average difficulty is a measure of how difficult and time-consuming it is to find the right hash to solve the algorithm on the blockchain in order to receive a reward. Difficulty increases or decreases over time, depending on the amount of computing power on the network. It is the number of hashes it takes to solve the algorithm on the bitcoin blockchain. Our measure of Average difficulty is derived from the daily average difficulty reported by CoinMetrics, a leading provider of crypto financial intelligence.
Revenue

On January 30, 2023, upon entering into our hosting agreement with NYDIG, we transitioned the significant majority of the capacity of our owned datacenter facilities to datacenter hosting operations. We entered into hosting arrangements at third party sites for the majority of our remaining owned miners in the first and second quarters of 2023. We produced approximately 2,225 bitcoin during the nine months ended September 30, 2023, of which 1,541 bitcoin were produced by third-party miners through our datacenter hosting and 684 bitcoin were produced by our Greenidge owned miners through self-mining. At September 30, 2023, Greenidge datacenter operations consisted of approximately 42,300 miners with approximately 4.6 EH/s of combined capacity for both datacenter hosting and cryptocurrency mining, of which 32,100 miners, or 3.4 EH/s, is associated with datacenter hosting and 10,200 miners, or 1.2 EH/s, is associated with Greenidge's cryptocurrency mining.
Datacenter hosting revenue
On January 30, 2023, we entered into the NYDIG Hosting Agreement to provide datacenter hosting services. Under the NYDIG Hosting Agreements, we generate revenue from a reimbursement fee that covers the cost of power and direct costs associated with management of the mining facilities, a hosting fee and a gross profit-sharing arrangement. The arrangement covers substantially all of our current mining capacity at the New York Facility and South Carolina Facility. We generated revenue of $28.7 million for the first nine months of 2023 for which there was no revenue in the comparable period of 2022.
Cryptocurrency mining revenue
For our cryptocurrency mining revenue, we generate revenue in the form of bitcoin by earning bitcoin as rewards and transaction fees for supporting the global bitcoin network with application-specific integrated circuit computers ("ASICs" or "miners") owned or leased by the Company. Our cryptocurrency mining revenue decreased $44.5 million, or 72%, to $17.0 million. We estimate that approximately 40% of the decrease was a result of a significant increase in Bitcoin mining difficulty and approximately 30% of the decrease was a result of the decline of Greenidge's average mining hashrate due to the sale of miners to NYDIG and the transition of mining infrastructure capacity to hosting. Additionally, we estimate that approximately 2% of the decline was due to the decrease in the average price of bitcoin. Bitcoin mining difficulty was 67% higher compared to the prior year due to increases in the difficulty index associated with the complexity of the algorithmic solution required to create a block and receive a bitcoin award, the average bitcoin price was 17% lower and our average hash rate decreased 48% primarily related to the sale of miners to NYDIG in January 2023 and the reallocation of our a significant majority of our datacenter infrastructure capacity to hosting services.
Power and capacity revenue
Power and capacity revenue at our New York Facility is earned when we sell capacity and energy and ancillary services to the wholesale power grid managed by the New York Independent System Operator ("NYISO"). Through these sales, we earn revenue in three streams, including: (1) power revenue received based on the hourly price of power, (2) capacity revenue for committing to sell power to the NYISO when dispatched and (3) other ancillary service revenue received as compensation for the provision of operating reserves.
Our power and capacity revenue decreased $7.4 million, or 60%, to $5.0 million during the nine months ended September 30, 2023. We estimate that lower volume reduced revenues by approximately 13% and lower prices impacted the power and capacity revenues by approximately 47%. This was a result of 54% lower price per MWh sold to the power grid and a 13% decrease in volume in the first nine months of 2023, as compared to the prior period. The power revenue decreased in the first nine months of 2023, due to relatively mild weather in New York during 2023, while
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there was a period of severe weather in January 2022 that caused a spike in power demand, which coincided with higher prices for electricity.
Cost of revenue (exclusive of depreciation)
Nine Months Ended September 30,Variance
20232022$%
Datacenter hosting$20,830 $— $20,830 N/A
Cryptocurrency mining10,639 34,796 (24,157)(69)%
Power and capacity4,762 10,955 (6,193)(57)%
Total cost of revenue (exclusive of depreciation)$36,231 $45,751 $(9,520)(21)%
As a percentage of total revenue71.4 %61.9 %
Total cost of revenue, exclusive of depreciation, decreased $9.5 million, or 21%, to $36.2 million during the nine months ended September 30, 2023 as compared to the prior year period. Total cost of revenue, exclusive of depreciation, decreased approximately 43% due to lower natural gas input costs at the New York facility, as the average cost of natural gas per dekatherm was approximately 73% lower than the prior year. This decrease was partially offset by an increase in costs by approximately 12% due to monthly hosting fees paid to 3rd parties for hosting company owned miners, which was a cost that did not occur in the prior year period when all company owned miners were hashing at company owned sites, as well as 10% due to increases in electricity input costs at the South Carolina Facility as a result of the South Carolina Facility expansion.
The significant portions of Cost of revenue are allocated between datacenter hosting, cryptocurrency mining and power and capacity based on MWh used by each. Power and capacity Cost of revenue also declined due to lower sales volume, while MWh utilized by cryptocurrency mining declined due to the transition to the Hosting Agreements during the nine months ended September 30, 2023.
Selling, general and administrative expenses
Selling, general and administrative expenses decreased $5.2 million, or 19%, to $22.7 million for the nine months ended September 30, 2023 as compared to the prior year period. The main drivers of the decrease in selling, general and administrative expenses were:
•Decrease of approximately $3 million due to reductions in professional fees and consulting expenses caused by reductions in discretionary costs and higher regulatory costs in the prior year associated with permit renewals and environmental matters at the New York plant; and

•Total payroll and benefits and other employee costs decreased approximately $2.2 million in 2023 compared to the prior year, as a result of declines in discretionary employee expenses including incentive compensation
Gain on sale of assets
We recognized a gain on the sale of assets of $1.8 million for the sale of certain credits and coupons during nine months ended September 30, 2023, including the $1.2 million of coupons transferred to NYDIG as part of the debt restructuring.
Depreciation
Depreciation expense decreased $11.3 million, or 52%, to $10.4 million for the nine months ended September 30, 2023 as compared to the prior year period due to a lower asset base resulting from impairments recognized in 2022 and the sale of miners in during the first quarter of 2023.
Operating (loss) income from continuing operations
We reported an operating loss from continuing operations for the nine months ended September 30, 2023 of $22.4 million compared with an operating loss from continuing operations of $104.1 million in the nine months ended September 30, 2022. The favorable variance of $81.7 million is primarily related to a $71.5 million impairment of assets and an $11.1 million remeasurement of environmental liabilities recognized in the second quarter of 2022 that is absent
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in the second quarter of 2023, as well as lower cost of revenue, selling, general and administrative costs, partially offset by lower revenue, in the aggregate, from hosting and mining operations.
Adjusted operating loss from continuing operations was $15.7 million for the nine months ended September 30, 2023 as compared to adjusted operating loss from continuing operations of $19.0 million in the nine months ended September 30, 2022. The increase in the adjusted loss from operations was primarily driven by the lower margin on the revenue caused by the shift of our owned mining infrastructure capacity to datacenter hosting and our owned miners being hosted by third parties along with the impacts of increased difficulty and lower average bitcoin price on revenue. A reconciliation of reported amounts to adjusted amounts can be found in the "Non-GAAP Measures and Reconciliations" section of this MD&A.
Total other expense, net
During the nine months ended September 30, 2023, other expense decreased $6.2 million, or 40%, to $9.3 million primarily from a decrease in interest expense of $6.0 million, due to lower debt balances in 2023 compared to 2022.
Benefit from income taxes
Our effective tax rate for the nine months ended September 30, 2023 was 0% which was lower than the statutory rate of 21% because we have a full valuation allowance on deferred tax assets. We recorded and will continue to carry a full valuation allowance against our gross deferred tax assets that will not reverse against deferred tax liabilities within the scheduled reversal period. Our effective tax rate for the nine months ended September 30, 2022 was (12.6)%, which was caused by the recognition of a valuation allowance on our deferred tax assets during the second quarter of 2022.
Net loss from continuing operations
As a result of the factors described above, Greenidge incurred a net loss from continuing operations of $31.8 million for the nine months ended September 30, 2023 as compared to a net loss from continuing operations of $134.7 million for the nine months ended September 30, 2022.
On an adjusted basis, excluding the impact of a gain on sale of assets and restructuring costs, adjusted net loss from continuing operations during the nine months ended September 30, 2023 would have been $25.1 million as compared to $36.6 million in the same period in 2022. The increase in the adjusted net loss from continuing operations was driven primarily by the same factors discussed above in Operating (loss) income from continuing operations, but was partially offset by a decrease in interest expense due to lower debt balances in 2023. Adjusted net loss is a non-GAAP performance measure. A reconciliation of reported amounts to adjusted amounts can be found in the "Non-GAAP Measures and Reconciliations" section of this MD&A.
Income from discontinued operations
We have reported the Support.com business as discontinued operations in the consolidated financial statements. Income from discontinued operations, net of tax decreased $3.9 million, or 122%, to $(0.7) million for the nine months ended September 30, 2023. The decrease primarily related to lower operating income caused by the loss of Support.com's largest customer, partially offset by a gain on asset disposal of $4.2 million.
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Non-GAAP Measures and Reconciliations
The following non-GAAP measures are intended to supplement investors’ understanding of our financial information by providing measures which investors, financial analysts and management use to help evaluate our operating performance. Items which we do not believe to be indicative of ongoing business trends are excluded from these calculations so that investors can better evaluate and analyze historical and future business trends on a consistent basis. Definitions of these non-GAAP measures may not be comparable to similar definitions used by other companies. These results should be considered in addition to, not as a substitute for, results reported in accordance with United States Generally Accepted Accounting Principles ("U.S. GAAP").
Adjusted operating (loss) income from continuing operations, Adjusted net loss from continuing operations, EBITDA (loss) from continuing operations and Adjusted EBITDA (loss) from continuing operations

Adjusted operating (loss) income from continuing operations” is defined as Operating(loss) income from continuing operations adjusted for special items determined by management, including, but not limited to business expansion costs, impairments of long-lived assets, remeasurement of environmental liabilities and restructuring as they are not indicative of business operations. “Adjusted net (loss) income from continuing operations” is defined as Net (loss) income from continuing operations adjusted for the after-tax impact of special items determined by management, including, but not limited to business expansion costs, impairments of long-lived assets, remeasurement of environmental liabilities and restructuring as they are not indicative of business operations. "EBITDA from continuing operations" is defined as earnings from continuing operations before taxes, interest, and depreciation and amortization. "Adjusted EBITDA from continuing operations" is defined as EBITDA from continuing operations adjusted for stock-based compensation and other special items determined by management, including, but not limited to business expansion costs, gain on sale of assets and debt restructuring costs as they are not indicative of business operations. Adjusted operating (loss) income from continuing operations, Adjusted net (loss) income from continuing operations, EBITDA from continuing operations and Adjusted EBITDA from continuing operations are intended as supplemental measures of our performance that are neither required by, nor presented in accordance with, U.S. GAAP. Management believes that the use of Adjusted operating (loss) income from continuing operations, Adjusted net (loss) income from continuing operations, EBITDA from continuing operations and Adjusted EBITDA from continuing operations provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with those of comparable companies, which may present similar non-GAAP financial measures to investors. However, you should be aware that when evaluating Adjusted operating (loss) income from continuing operations, Adjusted net (loss) income from continuing operations, EBITDA from continuing operations and Adjusted EBITDA from continuing operations, we may incur future expenses similar to those excluded when calculating these measures. In addition, our presentation of these measures should not be construed as an inference that its future results will be unaffected by unusual or non-recurring items. Our computation of Adjusted operating (loss) income from continuing operations, Adjusted net (loss) income from continuing operations and Adjusted EBITDA from continuing operations may not be comparable to other similarly titled measures computed by other companies, because all companies may not calculate Adjusted operating (loss) income from continuing operations, Adjusted net (loss) income from continuing operations and Adjusted EBITDA from continuing operations in the same fashion.

Because of these limitations, Adjusted operating (loss) income from continuing operations, Adjusted net (loss) income from continuing operations, EBITDA from continuing operations and Adjusted EBITDA from continuing operations should not be considered in isolation or as a substitute for performance measures calculated in accordance with U.S. GAAP. We compensate for these limitations by relying primarily on our U.S. GAAP results and using Adjusted operating (loss) income from continuing operations, Adjusted net (loss) income from continuing operations, EBITDA from continuing operations and Adjusted EBITDA from continuing operations on a supplemental basis. You should review the reconciliations of Operating loss from continuing operations to Adjusted operating loss from continuing operations, Net loss from continuing operations to Adjusted net loss from continuing operations and net (loss) income from continuing operations to EBITDA (loss) from continuing operations and Adjusted EBITDA from continuing operations below and not rely on any single financial measure to evaluate our business. The reported amounts in the table below are from our Unaudited Condensed Consolidated Statements of Operations in our Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q.

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Nine Months Ended September 30,Variance
20232022$%
Adjusted operating loss from continuing operations
Operating loss from continuing operations$(22,425)$(104,114)$81,689 (78)%
Expansion costs— 2,375 (2,375)(100)%
Loss on sale of assets(1,752)130 (1,882)— (1448)%
Impairment of long-lived assets4,000 71,500 (67,500)(94)%
Remeasurement of environmental liability1,600 11,109 (9,509)(86)%
Restructuring costs2,831 — 2,831 N/A
Adjusted operating loss from continuing operations$(15,746)$(19,000)$3,254 (17)%
Adjusted operating margin(31.0 %)(25.7 %)
Adjusted net loss from continuing operations
Net loss from continuing operations$(31,756)$(134,695)$102,939 (76)%
Expansion costs, after tax— 271 (271)(100)%
Loss on sale of assets, after tax(1,752)130 (1,882)(1448)%
Impairment of long-lived assets, after tax4,000 71,500 (67,500)(94)%
Remeasurement of environmental liability, after tax1,600 11,109 (9,509)(86)%
Restructuring costs, after tax$2,831 $— 2,831 N/A
Tax charge for valuation allowance— 15,056 (15,056)(100)%
Adjusted net loss from continuing operations$(25,077)$(36,629)$11,552 (32)%
EBITDA (loss) and Adjusted EBITDA (loss) from continuing operations
Net loss from continuing operations$(31,756)$(134,695)$102,939 (76)%
Provision for income taxes— 15,038 (15,038)(100)%
Interest expense, net9,725 15,692 (5,967)(38)%
Depreciation10,368 21,701 (11,333)— (52)%
EBITDA (loss) from continuing operations(11,663)(82,264)70,601 (86)%
Stock-based compensation1,531 1,029 502 49 %
Loss on sale of assets(1,752)130 (1,882)(1448)%
Impairment of long-lived assets, after tax4,000 71,500 (67,500)(94)%
Remeasurement of environmental liability, after tax1,600 11,109 (9,509)(86)%
Restructuring costs2,831 — 2,831 N/A
Expansion costs— 2,375 (2,375)(100)%
Adjusted EBITDA (loss) from continuing operations$(3,453)$3,879 $(7,332)(189)%
Revenue per MWh for datacenter hosting, cryptocurrency mining and power and capacity are used by management to consider the extent to which we may generate electricity to either produce cryptocurrency or sell power to the New York wholesale power market. Cost of revenue (excluding depreciation) per MWh represents a measure of the cost of natural gas, emissions credits, payroll and benefits and other direct production costs associated with the MWh's produced to generate the respective revenue category for each MWh utilized. Depreciation expense is excluded from the cost of revenue (exclusive of depreciation) per MWh metric; therefore, not all cost of revenues for datacenter hosting, cryptocurrency mining and power and capacity are fully reflected. To the extent any other cryptocurrency datacenters are public or may go public, the cost of revenue (exclusive of depreciation) per MWh metric may not be comparable because some competitors may include depreciation in their cost of revenue figures.
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Liquidity and Capital Resources
On September 30, 2022,2023, we had cash, restricted cash and cash equivalents and restricted cash of $38.5$10.7 million. To date, we have primarily relied on debt and equity financing to fund our operations, and to meetincluding meeting ongoing working capital needsneeds. In our efforts to improve liquidity, on January 30, 2023, we entered into debt restructuring agreements with NYDIG and B. Riley Commercial. See "Recent Transactions" for further details. We also raised equity through issuances of our Class A common stock under the ATM Agreement.
Our operating cash flows are affected by several factors including the price of bitcoin, cost of electricity, natural gas and emissions credits. During 2022, and more particularly during the second half of 2022, our profit and cash flows were impacted significantly by volatility in the prices of bitcoin and natural gas. As a result, management took certain actions during the second half of 2022 and 2023 to executeimprove our liquidity.
As discussed above and under "Recent Transactions," we entered into the NYDIG Agreement to restructure our debt by transferring ownership of miners, previously secured by the MEFAs, under the Purchase Agreement along with the rights to credits and coupons to NYDIG and reduced our debt and accrued interest balance with NYDIG from $75.8 million to $17.3 million. The restructuring of the NYDIG debt is expected to improve Greenidge’s liquidity during 2023 as the payments required on the initial stagesremaining principal balance is interest payments of $2.0 million. This reduced debt service is substantially lower than the $62.7 million of principal and interest payments which would have been required in 2023 pursuant to the 2021 and 2022 MEFAs, both of which have now been refinanced.
We also entered into the Hosting Agreements with NYDIG affiliates. The terms of such arrangements require NYDIG affiliates to pay a hosting fee that covers the cost of power and direct costs associated with management of the mining facilities as well as a gross profit-sharing arrangement. This allows us to participate in the upside should bitcoin prices rise, but reduces our downside risk of bitcoin price deterioration and cost increases related to natural gas.
Additionally, we entered into the Promissory Note Amendment with B. Riley Commercial, which adjusted payments so that no principal and interest payments are required until June 2023, except for a requirement to repay principal using a portion of net proceeds from sales of equity, which was reduced from 65% to 15% of the net proceeds received. B. Riley Commercial and Atlas Holding LLC each purchased $1 million of our business plan. DuringClass A common stock pursuant to the firstATM agreement. In addition to the net proceeds from the sale of Class A common stock to B. Riley Commercial and Atlas Holdings LLC, during 2023, we received net proceeds of $11.5 million from sales of Class A common stock pursuant to the ATM agreement. We repaid $6.8 million of principal on the Secured Promissory Note during the nine months of 2022,ended September 30, 2023.
Since entering into the Hosting Agreements, we obtained approximately $110.3 millionhave identified opportunities to deploy our company-owned miners. In March 2023, we entered into the Conifex Hosting Agreement, whereby Conifex will provide hosting services to Greenidge utilizing renewable power. In April 2023, we entered into the Hosting Agreement with Core in which Core will host and operate Greenidge-owned bitcoin miners at its facilities. In addition, we installed an approximate 1,500 of additional committed financings through two different agreements described further below.company-owned miners at our existing facilities. The installation of these miners at Conifex and Core facilities along with our facilities will improve our profits and liquidity during the remainder of 2023 and beyond.
We may seekIn August 2023, in connection with a non-binding term sheet that the Company entered into with NYDIG in June to raise capital through alternative sources, such aseffect a public offering,deleveraging transaction, the Company completed an additional private placementelectrical upgrade at its South Carolina facility increasing the capacity to 44 MW. Upon completion of our equity or debt securities or traditional or non-traditional credit facilities. If we raise additional equity financing, ourthis expansion, on August 10, 2023, the Company and NYDIG amended the NYDIG Hosting Agreements to increase the number of miners being hosted by Greenidge utilizing all of the expansion. The NYDIG Hosting Agreements were amended in furtherance of the broader transaction contemplated by the non-binding term sheet pursuant to which the Company would sell to NYDIG all of the upgraded mining facilities at the South Carolina site and would also subdivide and sell to NYDIG the approximately 22 acres of land on which the facilities are located. This deleveraging transaction with NYDIG closed on November 9, 2023. In exchange for the sale to NYDIG of the
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stockholders may experience significant dilution of their ownership interests,upgraded South Carolina mining facilities and the per share valuesubdivided approximate 22 acres of our class A common stock could decline. Furthermore, if we engage in additional debt financing, the debt holders would likely have priority over our stockholders, on orderland, Greenidge received total consideration of payment preference.approximately $28 million:
While we held a relatively small amount◦The Senior Secured Loan with NYDIG with remaining principal of digital assets for an extended periodapproximately $17.7 million was extinguished;
◦The B Riley Commercial Secured Promissory Note with remaining principal of approximately $4.1 million as of September 30, 2022, our2023, which NYDIG purchased from B. Riley Commercial on July 20, 2023 at par was extinguished;
◦A cash payment of approximately $4.5 million, and;
◦The Company will also receive bonus payments earned of approximately $1.6 million as a result of the completion of the expansion of the upgraded mining facility and the facility's uptime performance, which are payable at the completion of the transition services period, which is anticipated to occur in December 2023.
In conjunction with the sale, the Company and NYDIG terminated the South Carolina Hosting Order. As a result, at the time of closing the Company returned NYDIG's security deposit, which are included in other long-term liabilities as of September 30, 2023, resulting in a cash outflow of $2.2 million. Within thirty days of closing, the Company also expects to receive a cash inflow of $3.5 million from the return of its security deposit held by the local utility, which was included in prepaid expenses and other assets as of September 30, 2023.
Additionally, the Company paid the remaining accrued interest on the Senior Secured and Secured Promissory Note of $0.9 million. The Company also settled certain third party transaction costs and Greenidge's share of local taxes of $0.5 million.
Prior to the closing of the South Carolina Facility sale, the Company had a cash outflow of approximately $0.9 million related to the settlement of accounts payable related to the facility upgrade, which were classified as current business strategyliabilities held for sale as of September 30, 2023.
Following the completion of the South Carolina Facility sale, the Company continues to own approximately 153 acres of land in South Carolina, and is assessing potential uses of the remaining site, which may include the sale of the property. The NYDIG Hosting Agreements related to sell digital assets within the New York Facility were not impacted by this transaction and remain in place.
Despite these improvements to the Company's financial condition, Greenidge management expects that it will require additional capital in order to fund the Company’s expenses and to support the Company’s working capital needs and remaining debt servicing requirements. Management continues to assess different options to improve its liquidity which include, but are not limited to:
•issuances of equity, including but not limited to issuances under the Equity Purchase Agreement and/or the ATM Agreement.
•a short period after earning such assets. We may choose to change this strategysale of the Company's remaining real estate in South Carolina and remaining miner infrastructure equipment inventory, which was not used in the future. South Carolina expansion.
The averageCompany estimates that it's cash resources will be depleted by the end of the first quarter of 2024. The Company's estimate of cash resources available to the Company for the next 12 months is dependent on completion of certain actions, including the completion of the sale of the South Carolina real estate, a sale of remaining equipment inventory, or obtaining additional short-term outside financing; as well as bitcoin prices and blockchain difficulty levels similar to those existing as of the filing of this Quarterly Report on Form 10-Q and energy prices similar to the those experienced in the third quarter of 2023. While bitcoin prices have begun to recover during the first nine months of 2023 from the significant declines experienced in 2022, management cannot predict when or if bitcoin prices will recover to sufficient levels for a sustained period between receiptof time, or the volatility of energy costs. While the Company continues to work to implement options to improve liquidity, there can be no assurance that these efforts will be successful and the Company's liquidity could be negatively impacted by factors outside of its control, in particular, significant decreases in the price of bitcoin, regulatory changes concerning cryptocurrency, increases in energy costs or other macroeconomic conditions and other matters identified in Part I, Item 1A "Risk Factors" in the subsequent conversionCompany's Annual Report on Form 10-K for the year ended
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December 31, 2022 and in this Quarterly Report on Form 10-Q. Given this uncertainty regarding the Company's financial condition over the next 12 months from the date these financial statements were issued, the Company has concluded that there is substantial doubt about its ability to cash is less than one day because at least 95%continue as a going concern for a reasonable period of time. The consolidated financial statements do not include any adjustments that might result from the bitcoin mined each day is liquidated the same day it is mined. Our liquidity is subject to volatility in both numberoutcome of bitcoins mined and the underlying price of bitcoin.this uncertainty.
Contractual Obligations and Commitments
The following table summarizes our contractual obligations and other commitments as ofat September 30, 2022,2023, and the years in which these obligations are due:
$ in thousands$ in thousandsTotalRemainder of 20222023-20242025-2026Thereafter$ in thousandsTotalRemainder of 20232024-20252026-2027Thereafter
Debt paymentsDebt payments$212,089 $24,824 $102,791 $84,474 $- Debt payments$114,493 $3,319 $32,837 $78,337 $- 
LeasesLeases273 32 241 — — Leases144 33 111 — — 
Environmental obligationsEnvironmental obligations22,415 — 16,500 5,915 — Environmental obligations27,836 436 9,500 9,850 8,050 
Natural gas transportationNatural gas transportation15,168 474 3,792 3,792 7,110 Natural gas transportation13,272 474 3,792 3,792 5,214 
TotalTotal$249,945 $25,330 $123,324 $94,181 $7,110 Total$155,745 $4,262 $46,240 $91,979 $13,264 
The debt payments included in the table above include the principal interest and risk premiuminterest amounts due. We have settled all obligations related to the Senior Secured Loan and Secured Promissory Note with NYDIG subsequent to quarter-end through the South Carolina Sale transaction described above. As a result, the adjusted debt payment obligations for 2024-2026 consist of $6.1 million of annual interest payments on the Senior Unsecured Notes and the remaining balance becoming due in October 2026.
The lease payments include fixed monthly rental payments and exclude any variable payments. Environmental obligations are based on estimates subject to various assumptions including, but not limited to, closure and post-closure cost estimates, timing of expenditures, escalation factors, and requirements of granted permits.permits The Company anticipates commencing remediation activities of the coal ash pond within the next twelve months. Additional adjustments to the environment liability may occur periodically due to potential changes in remediation requirements regarding coal combustion residuals which may lead to material changes in estimates and assumptions.
Our operating cash flows are affected by several factors including the price of bitcoin and cost of electricity and natural gas, and based on the current price of bitcoin and electricity cost, we expect that we will require additional capital in order to meet the commitments above. During the nine months ended September 30, 2022, the Company’s profit and cash flows were impacted significantly by volatility in the prices of bitcoin and natural gas. The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management has evaluated different options to improve its liquidity to fund the Company’s expenses and to support the Company’s debt servicing requirements. These options include, but are not limited to:
•selling or monetizing certain assets, including but not limited to sales of additional miners, sales of surplus mining infrastructure equipment, or sales of unannounced and undeveloped locations the Company was evaluating for expansion;
•issuances of equity, including but not limited to issuances under the Equity Purchase Agreement and/or the ATM Agreement;
•migrating certain of its equipment to lower cost locations; and
•negotiating with lenders to modify the terms of certain of the Company’s existing financings, which could result in various modifications, including but not limited to, the modification of interest rates and/or debt amortization, assignment of collateral and changes to the Company's business model.
In the Company's efforts to further improve liquidity, Greenidge and the Noteholder amended the Secured Promissory Note on August 10, 2022. The amendment is discussed further below under "Secured Promissory Note".
The Company has received proceeds of $59.8 million since October 2021 from sales of common stock under the original and amended Equity Purchase Agreements, of which $8.9 million proceeds, net of discounts, was received during the nine months ended September 30, 2022. In September 2022, Greenidge entered into an ATM Agreement (defined and
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discussed further below under "ATM Agreement"), and since September 30, 2022 through November 11, 2022, the Company received proceeds of $1.6 million from sales of common stock under the ATM Agreement.
Additionally, the Company has sold certain of its miners and other assets during the nine months ended September 30, 2022 for proceeds of $4.8 million.
The Company anticipates that existing cash resources will be depleted by the end of the first quarter of 2023. Depending on its assumptions regarding the timing and ability to achieve more normalized levels of operating revenue, the estimated amount of required liquidity will vary significantly. Similarly, management cannot predict when or if bitcoin prices will recover to prior levels, or when energy costs may decrease. While the Company continues to work to implement the options to improve liquidity, there can be no assurance that these efforts will be successful.
Management's ability to successfully implement these options could be negatively impacted by items outside of its control, in particular, significant decreases in the price of bitcoin, regulatory changes concerning cryptocurrency, increases in energy costs or other macroeconomic conditions and other matters identified in Part I, Item 1A "Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2021 and Part II, Item 1A "Risk Factors" of this Quarterly Report on Form 10-Q. Given the lack of improvement in the above mentioned factors in the third quarter of 2022, there is uncertainty regarding the Company’s financial condition and substantial doubt about its ability to continue as a going concern for a reasonable period of time.
Summary of Cash Flow
The following table provides information about our net cash flow for the nine months ended September 30, 20222023 and 2021.2022.
 Nine Months Ended
September 30,
$ in thousands20222021
Net cash (used for) provided by operating activities$(1,226)$26,666 
Net cash used in investing activities(122,076)(38,644)
Net cash provided by financing activities79,216 58,075 
Net change in cash and cash equivalents and restricted cash(44,086)46,097 
Cash and cash equivalents at beginning of year82,599 5,052 
Cash and cash equivalents and restricted cash at end of period$38,513 $51,149 
 Nine Months Ended
September 30,
$ in thousands20232022
Net cash used for operating activities from continuing operations$(910)$(6,054)
Net cash used for investing activities from continuing operations(10,352)(122,070)
Net cash provided by financing activities from continuing operations4,666 79,216 
Increase in cash and cash equivalents from discontinued operations2,066 4,822 
Net change in cash, restricted cash and cash equivalents(4,530)(44,086)
Cash, restricted cash and cash equivalents at beginning of year15,217 82,599 
Cash, restricted cash and cash equivalents at end of period$10,687 $38,513 
Operating Activities
Net cash (used for) provided byused for operating activities was $(1.2)$0.9 million for the nine months ended September 30, 2022,2023, as compared to $26.7net cash used operating activities was $6.1 million for the nine months ended September 30, 2021. The variance in2022. During the operating cash flow during the first nine months ended September 30, 2023, payments made for prepaid expenses and accrued expenses were offset by an increase in accounts payable, the collection of 2022 as compared to 2021an accounts receivable balance, which was driven primarily by the lower profits caused by higher sales of power
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due to a cold streak at the decrease in the priceend of bitcoinDecember 2022, and the higher costcollection of power in 2022 than in 2021.a security deposit associated with the Hosting Agreements.
Investing Activities
Net cash used in investing activities was $10.4 million for the nine months ended September 30, 2023, as compared to $122.1 million for the nine months ended September 30, 2022, as compared2022. The decrease is primarily related to $38.6$116.4 million for the nine months ended September 30, 2021. For the nine months ended September 30, 2022,of lower purchases of and deposits for property and equipment significantly increased as compared to the prior year due to the significant expansion of our miner fleet and infrastructure for cryptocurrency datacenter operations.operations that was occurring during the prior year.
Financing Activities
Net cash provided by financing activities was $4.7 million for the nine months ended September 30, 2023, as compared to $79.2 million for the nine months ended September 30, 2022. The decrease is primarily related to the decrease of $107.1 million of proceeds from debt, net of issuance costs received.
Financing Arrangements
See Note 5, "Debt," and Note 9, "Stockholder's Equity" in the Notes to our Unaudited Condensed Consolidated Financial Statements for details regarding our financing arrangements for further details regarding our financing arrangements.
Critical Accounting Policies and Estimates
The most significant accounting estimates involve a high degree of judgment or complexity. Management believes the estimates and judgments most critical to the preparation of our condensed consolidated financial statements and to the understanding of our reported financial results include those made in connection with revenue recognition, valuation of long-lived assets and environmental obligations. Management evaluates its policies and assumptions on an ongoing basis.
Our significant accounting policies related to these accounts in the preparation of our condensed consolidated financial statements are described under the heading “Management Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies and Estimates” in our Annual Report on Form 10-K for the year ended December 31, 2022. As of the date of this filing, there were no significant changes to any of the critical accounting policies and estimates previously described in our Annual Report on Form 10-K for the year ended December 31, 2022 with the exception of those described below.
Revenue Recognition
Datacenter Hosting Revenue

We generate revenue from contacts with customers from providing hosting services to a single third-party customer. Hosting revenue is recognized as comparedservices are performed on a variable basis. We recognize variable hosting revenue each month as the uncertainty related to $58.1the consideration is resolved, hosting services are provided to our customer, and our customer utilizes the hosting service (the customer simultaneously receives and consumes the benefits of our performance). Our performance obligation related to these services is satisfied over time. We recognize revenue for services that are performed on a consumption basis (the amount of electricity utilized by the customer) as well as through a fixed fee that is earned monthly and a profit sharing component based on the net proceeds earned by the customer in the month from bitcoin mining activities. We bill our customer at the beginning of each month based on the anticipated consumption under the contract. Invoices are collected in the month of invoicing under the terms of the contract. We recognize revenue based on actual consumption in the period and invoices adjustments in subsequent periods or retains credits toward future consumption. We recorded datacenter hosting revenue of $12.1 million forand $0 during the three months ended September 30, 2023 and 2022, respectively and $28.7 million and $0 during the nine months ended September 30, 2021. For2023 and 2022, respectively.
Cryptocurrency Mining Revenue
Greenidge has entered into digital asset mining pools by executing contracts with the nine months ended September 30, 2022,mining pool operators to provide computing power to the net cash providedmining pool. The contracts are terminable at any time by financing activities primarily consistedeither party and Greenidge’s enforceable right to compensation only begins when Greenidge provides computing power to the mining pool operator. In exchange for providing computing power, Greenidge is entitled to a theoretical fractional share of $107.1 million of net proceeds from debt and $7.8 million of proceeds from issuance of common stock, net of issuance costs, partially offset by $35.3 million of payments of debt principal. For the nine months ended September 30, 2021, the net cash provided by financing activities consisted of $37.1cryptocurrency
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million in proceeds from issuance of preferred stock, $25.1 million of net proceeds from debt obligations and $1.0 million of proceeds from stock options exercised, partially offset by $4.4 million of principal payments on debt.
Master Equipment Finance Agreement
On March 21, 2022, Greenidge, as guarantor, together with its wholly-owned subsidiaries GTX Gen 1 Collateral LLC, GNY Collateral LLC and GSC Collateral LLC (collectively,award the “Borrowers”) entered into a Master Equipment Finance Agreement (the “NYDIG Financing Agreement”) with NYDIG ABL LLC (“NYDIG”), as lender, whereby NYDIG agreed to lendmining pool operator receives less digital asset transaction fees to the Borrowers approximately $81 million under loan schedules to financemining pool operator. Revenue is measured as the acquisition of certain bitcoin miners and related equipment (the “Financed Equipment”). The Borrower’s obligations under the NYDIG Financing Agreement are fully and unconditionally guaranteed by Greenidge. Outstanding borrowings under the NYDIG Financing Agreement are secured by all assetsvalue of the Borrowers including without limitationfractional share of the Financed Equipment and proceeds thereof (including bitcoin). The partially funded loan schedules bear interest at a ratecryptocurrency award received from the pool operator, which has been reduced by the transaction fee retained by the pool operator, for Greenidge’s pro rata contribution of 13% per annum and have terms of twenty-five months. Certain loan schedules are interest-only for a specified period and otherwise payments on loan schedules include both an interest and principal payment.
Secured Promissory Note
In additioncomputing power to the NYDIG Financing Agreement, on March 18, 2022, Greenidge also issuedmining pool operator for the successful solution of the current algorithm.
Providing computing power for digital asset transaction verification services is a secured promissory note, as borrower, in favor of B. Riley Commercial Capital, LLC, as noteholder (the “Noteholder”), evidencing a $26.5 million aggregate principal amount loan by the Noteholder to the Company (the “Secured Promissory Note”). The Secured Promissory Note is guaranteed by certainpart of Greenidge’s wholly-owned subsidiaries:ordinary operating activities. The provision of such computing power is the only performance obligation in Greenidge’s contracts with mining pool operators. The cryptocurrency that Greenidge South Carolina LLC, GSC RE LLC and 300 Jones Road LLC. The loan outstanding underreceives as transaction consideration is noncash consideration, which Greenidge measures at fair value on the Secured Promissory Note bears interest at a rate of 6% per annum and originally matured on July 20, 2022, subject to up to five 30-day extensions that may be elected by Greenidge provided no Event of Default (as defined therein) has occurred and is continuing and Greenidge pays an Exit Fee (as defined therein) to the Noteholder. The Secured Promissory Note is secured by a first priority mortgage lien on certain real property together with related improvements, fixtures and personal property locateddate received at the South Carolina Facility. Greenidge’s obligations under the Secured Promissory Note may be prepaid in whole or in part without penalties or fees.
On August 10, 2022, Greenidge and the Noteholder agreed to amend the terms of the Secured Promissory Note, by extending the maturity to June 2023, reducing scheduled monthly amortization payments and revising the interest rate to 7.5%. The Exit Fees associated with the four 30-day extensions subsequent to August 10, 2022, were accelerated and added to the principal balance as of that date. The principal balance following the amendment was $16.4 million as of August 10, 2022. Additionally mandatory repayments of the Secured Promissory Note were revised, such that 65% of the net cash proceedsliquidation price received from sales of stock under the 2022 Purchase Agreement shall be paid to Noteholder to repay the Secured Promissory Note.
Refer to Note 7, Debt, to the Condensed Consolidated Financial Statements of this Quarterly Report on Form 10-Q for a further discussion of the Company's debt.
ATM Agreement
On September 19, 2022, as amended on October 3, 2022, Greenidge entered into an at market issuance sales agreement (the "ATM Agreement") with B. Riley Securities, Inc. ("B. Riley") and Northland Securities, Inc. ("Northland"). Under the ATM Agreement, B. Riley will use its commercially reasonable efforts to sell on our behalf the shares of our class A common stock requested to be sold by us, consistent with its normal trading and sales practices, under the terms and subject to the conditions set forth in the ATM Agreement. B. Riley may sell our class A common stock by any method permitted by law deemed to be an “at the market offering” as defined in Rule 415(a)(4) promulgated under the Securities Act. Greenidge will pay B. Riley commissions for its services in acting as sales agent in the sale of our class A common stock. B. Riley will be entitled to compensation in anthe bitcoin reward, which is not materially different than the fair value at the contract inception or the time Greenidge has earned the award from the pools. The awardsare received each day for the previous day’s revenue and are automatically sold shortly after receipt. The consideration is all variable based on the amount equal to up to 5.0%of computing power provided by Greenidge and the total network hash rate and it is probable that a significant reversal of the gross proceedsconsideration will not occur.
Pool fees paid by miners to pooling operators are based on a fixed percentage of the theoretical bitcoin block reward and network transaction fees received by miners. Pooling fees are netted against daily bitcoin payouts. Greenidge does not expect any material future changes in pool fee percentages paid to pooling operators.
Fair value of the cryptocurrency award received is determined using the quoted price on Greenidge’s primary exchange of the related cryptocurrency at the time of receipt.
Valuation of Long-Lived Assets
In accordance with ASC 360-10, the Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. To determine recoverability of a long-lived asset, management evaluates whether the estimated future undiscounted net cash flows, based on prevailing market conditions, from the asset are less than its carrying amount. If impairment is indicated, the long-lived asset is written down to fair value.

During 2022, we determined that triggering events had occurred as of June 30, 2022 and December 31, 2022 due to the negative impact on our cash flows resulting from the significant market declines in the price of bitcoin and increases in natural gas and energy costs during those periods. For the purposes of performing the recoverability test we consider all class A common stock sold through itthe long-lived assets of the Company to be a single asset group as sales agentwe operate as an integrated power and crypto datacenter operations business and this grouping represents the lowest level of identifiable independent cash flows. We concluded that projected undiscounted cash flows did not support the recoverability of the long-lived assets as of June 30, 2022 and December 31, 2022; therefore, a valuation was performed using the market approach in order to determine the fair value of the asset grouping. The carrying value exceeded the fair value of the asset group and impairment loss was recorded for the difference in the carrying value and fair value. The Company recognized a noncash impairment charge of $176.3 million for the year ended December 31, 2022.

In determining the fair value of long-lived assets under the ATM Agreement. Undermarket approach, we relied on the registration statement filed registering sharesguideline public company method, which considered the market capitalization of Greenidge, as well as the market capitalizations of other publicly traded companies and determined their revenue and hash rate multiples to be soldcompare to the market capitalization of Greenidge. Estimates using the guideline public company method is subject to uncertainties caused by potential differences in outlook caused by differing facts and circumstances surrounding the comparable companies, such as susceptibility to fluctuations in energy prices, liquidity of each company, environmental liabilities and any market perceptions of the companies in the peer group that may not apply across the industry. Valuing the Company under the ATM Agreement, Inmarket value approach changed significantly during 2022 as market perceptions of the cryptocurrency mining industry changed as bitcoin prices continued to decline and remained depressed for the latter part of 2022. We analyzed the estimates using this market approach by estimating the values using a cost approach, which resulted in similar asset values as of December 31, 2022. Considering the estimates from these different approaches, we believe the fair value of the asset group would have been within an approximate 15% to 20% range.

The Company evaluated the recoverability of the South Carolina facility classified as Held for Sale (see note 3, Assets Held for Sale and Discontinued Operations) as of September 30, 2023. The Company anticipates realizing a gain on the sale transaction and therefore no event shall Greenidge issue or sell through B. Riley such numberloss on classification to Held for Sale was recorded during the three months ended September 30, 2023. The Company is evaluating future uses of Placement Shares that exceeds up tothe remaining real estate assets in South Carolina, which includes the land and the original building which was classified as construction in process as it was not used in cryptocurrency mining. The impairment assessment was performed using a maximum aggregate offering pricemarket approach by obtaining third party appraisals for the value of $22,800,000the site. An impairment charge of class A common stock of Greenidge.
From October 1, 2022 through November 11, 2022, Greenidge issued 1,634,964 shares, which B. Riley sold$4 million was recorded for $1.6 million of net proceeds to Greenidge.the three month period ending
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September 30, 2023, which is the remaining value of the building which was determined to no longer be recoverable through a sale transaction.

Remeasurement of environmental liabilities
We recognize environmental liabilities in accordance with ASC 410-30, Asset Retirement and Environmental Obligations. As of September 30, 2023 we have recognized environmental liabilities for a coal ash pond and landfill which were inherited due to the legacy coal operations at the Company's property in the Town of Torrey, New York. These costs are considered to be both probable and estimable. We have recorded a total environmental liability of $29.4 million and $28.0 million as of September 30, 2023 and December 31, 2022, respectively for the remediation of these sites. During the nine months ended September 30, 2023, the Company recognized a charge of $1.6 million for the remeasurement of an environmental liability as a result of an update in the cost estimates associated with the landfill post closure liabilities associated with the Company's New York Facility as part of our continuing evaluation of the site. The Company has estimated the cost of remediation by developing a remediation plan in consultation with environmental engineers, periodically obtaining quotes for estimated construction costs and adjusting estimates for inflationary factors based on the expected timing of the remediation work. Estimates include anticipated post-closure costs including monitoring and maintenance of the site. Estimates are based on various assumptions that are sensitive to changes including, but not limited to, closure and post-closure cost estimates, timing of expenditures, escalation factors, and requirements of granted permits. Additional material adjustments to the environmental liability may occur in the future due to required changes to the scope and timing of the remediation, changes to regulations governing the closure and remediation of CCR sites and changes to cost estimates due to inflationary or other economic factors.
Off-Balance Sheet Arrangements
None.
Emerging Growth Company Status
We qualify as an “emerging growth company” under the Jumpstart our Business Startups Act ("JOBS Act"). As a result, we are permitted to, and intend to, rely on exemptions from certain disclosure requirements. For so long as we are an emerging growth company, we will not be required to:
•have an auditor report on our internal controls over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act;
•comply with any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and the financial statements (i.e., an auditor discussion and analysis);
•submit certain executive compensation matters to shareholder advisory votes, such as “say-on-pay,” “say-on-frequency” and pay ratio; and
•disclose certain executive compensation related items such as the correlation between executive compensation and performance and comparisons of the CEO’s compensation to median employee compensation.
In addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards.
In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits of this extended transition period. Its financial statements may therefore not be comparable to those of companies that comply with such new or revised accounting standards.
We will remain an “emerging growth company” for up to five years, or until the earliest of (i) the last day of the first fiscal year in which our total annual gross revenues exceed $1.07$1.235 billion, (ii) the date that we become a “large accelerated filer” as defined in Rule 12b-2 under the Exchange Act, which would occur if the market value of our classClass A common stock that are held by non-affiliates exceeds $700 million as of the last business day of our most recently completed
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second fiscal quarter, or (iii) the date on which we have issued more than $1 billion in non-convertible debt during the preceding three year period.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Not required for smaller reporting companies.
Item 4. Controls and Procedures
The Company’s management, including its Chief Executive Officer and Chief Financial Officer, have conducted an evaluation of the effectiveness of disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended), as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded as of September 30, 2022,2023, that the disclosure controls and procedures are effective in ensuring that all material information required to be filed in this Quarterly Report on Form 10-Q has been recorded, processed, summarized and reported when required and the information is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.
There have not been any changes in the Company’s internal control over financial reporting that occurred during the third quarter of 20222023 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
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PART II—OTHER INFORMATION
Item 1. Legal Proceedings
From time to time, we may become involved in various lawsuits and legal proceedings that arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in such matters may arise and harm our business. . We are currently not aware of any such legal proceedings or claims that we believe will have a material adverse effect on our business, financial condition or operating results. For information on legal proceedings, refer to Note 13. 10, "Commitments and Contingencies—Legal Matters" in our unaudited condensed consolidated financial statements included elsewhere in this report.
On December 17, 2020, certain parties filed an Article 78 petition with the Supreme Court of the State of New York, Yates County, that challenges the Town of Torrey’s site plan review for the planned expansion of our cryptocurrency datacenter. We were joined in the petition as a necessary party. The petition asserts, among other things, a violation of the State of New York Environmental Quality Review Act for failing to identify all areas of environmental concern or appropriately review the potential environmental impacts of the planned expansion of our data center. On April 7, 2022, the Supreme Court denied the petition with prejudice, upholding the Town of Torrey’s site plan review on multiple, independent grounds. A notice of appeal was filed but the appeal was not perfected by the October 20, 2022 deadline; therefore, the appeal is deemed abandoned.
Item 1A. Risk Factors
In evaluating our company and our business, you should carefully consider the risks and uncertainties described in Part I, Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 20212022 together with updates to those risk factors or new risk factors contained in this Quarterly Report on Form 10-Q below and any other information in this Quarterly Report on Form 10-Q, including our condensed consolidated financial statements and the related notes and in the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations”. The occurrence of one or more of the events or circumstances described in these risk factors, alone or in combination with other events or circumstances, may have a material adverse effect on our business, reputation, revenue, financial condition, results of operations and future prospects, in which case the market price of our common stock could decline. Unless otherwise indicated, reference in this section and elsewhere in this Quarterly Report on Form 10-Q to our business being adversely affected, negatively impacted or harmed will include an adverse effect on, or a negative impact or harm to, our business, reputation, financial condition, results of operations, revenue and our future prospects. The material and other risks and uncertainties included in our Annual Report on Form 10-K, summarized above in this Quarterly Report on Form 10-Q and described below are not intended to be exhaustive and are not the only ones we face. Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also impair our business operations. This Quarterly Report on Form 10-Q also contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in the forward-looking statements as a result of a number of factors, including the risks described below. Certain statements in the Risk Factors below are forward-looking statements. See the section titled “Cautionary Statement Regarding Forward-Looking Statements”.
Our business is subject to numerous risks and uncertainties, which illuminate challenges that we face in connection with the successful implementation of our strategy and the growth of our business. Our business, prospects, financial condition or operating results could be harmed by any of these risks, as well as other risks not currently known to us or that we currently consider immaterial.
Risks Related to Our Business
Risks Related to the Ownership of Our Securities
Because there is a risk as to our ability to continue as a going concern for a reasonable period of time, an investment in our common stock is highly speculative. Holders of our common stock could suffer a total loss of their investment.
OurThe ability to continue as a going concern is dependent on our ability to generateupon the Company generating profitable operations in the future and/or obtainobtaining the necessary financing to meet ourits obligations and repay ourits liabilities arising from normal business operations when they come due. We have experienced periods of losses and negativeOur operating cash flows asare affected by several factors including the price of bitcoin and cost of electricity, natural gas and emissions credits, and based on the current price of bitcoin and electricity cost. During the year ended December 31, 2022, our profit and cash flows were impacted significantly by volatility in the prices of bitcoin and natural gas. As a result, management took certain actions during the second half of decreases in bitcoin prices2022 and increases in natural gas prices, which are currently affecting, and have affectedduring 2023 to improve the performance of our
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Company's liquidity, such as restructuring Greenidge’s debt with NYDIG.

business. Additional adverse developments affecting these industries could have a material adverse effectIn conjunction with such restructuring, Greenidge also entered into Hosting Agreements with NYDIG affiliates on our business, financial condition and results of operations.
Management has evaluated different optionsJanuary 30, 2023, which is expected to improve our liquidity position, as such agreements provide for cost reimbursements for key input costs, while allowing Greenidge to fund our expenses and to support our debt servicing requirements. These options include, but are not limited to, selling or monetizing certain assets; issuances of equity, including but not limited to issuances underparticipate in the Equity Purchase Agreement and the ATM Agreement; migrating certain of our equipment to lower cost locations; and negotiating with lenders to modify the terms of certain of our existing financings. On August 10, 2022, B. Riley agreed to amend and restate the Promissory Note by extending the maturity to June 2023, reducing scheduled monthly amortization payments and reducing mandatory prepayments. We received proceeds of $59.8 million since October 2021 from sales of common stock under the original and amended Equity Purchase Agreements, of which $8.9 million proceeds, net of discounts, was received during the nine months ended September 30, 2022. In September 2022, Greenidge entered into an ATM agreement and since September 30, 2022 through November 11, 2022, theupside as bitcoin prices rise. The Company received proceeds of $1.6 million sales of common stock under the ATM Agreement. Additionally, we sold certain of our mining equipment and other assets during the nine months ended September 30, 2022 for proceeds of $4.8 million, however, the value of miners has continued to decline during the third quarter of 2022.
We anticipateanticipates that existing cash resources will be depleted by the end of the first quarter of 2023. 2024, which is dependent on completion of certain actions, including our ability sell excess equipment and remaining real estate in South Carolina. See "Management’s Discussion And Analysis of Financial Condition And Results Of Operations Management’s Discussion And
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Analysis Of Financial Condition And Results of Operations For Greenidge—Liquidity And Capital Resources" and Note 6, "Debt", in the Notes to Consolidated Financial Statements for further details.
Depending on ourits assumptions regarding the timing andregarding the ability to achieve more normalized levels of operating revenue, the estimated amount of required liquidity will vary significantly. Similarly, while bitcoin prices have begun to recover in 2023, management cannot predict when or if bitcoin prices will recover to prior levels, or whenvolatility in energy costs may decrease.costs. While we continuethe Company continues to work to implement the options to improve liquidity, there can be no assurance that these efforts will be successful. Management's ability to successfully implement these options could be negatively impacted by items outside of ourits control, in particular, significant decreases in the price of bitcoin, regulatory changes concerning cryptocurrency, increases in energy costs or other macroeconomic conditions and other matters identified in Part I, Item 1A "Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2021 and this section entitled "Risk Factors" of this Quarterly Report on Form 10-Q. Given the lack of improvement in the above mentioned factors in the third quarter of 2022, thereconditions. There is uncertainty regarding ourthe Company's financial condition and substantial doubt about ourits ability to continue as a going concern for a reasonable period of time.
The market price, trading volume and marketability of our class A common stock may be significantly affected by numerous factors beyond our control.
The market price and trading volume of our class A common stock may fluctuate and/or decline. Recently, the trading price of our classOur Class A common stock has declined significantly. Whenbeen subject to delisting proceedings from the price of bitcoin declines,Nasdaq Global Select Market recently. While the Company has regained compliance with Nasdaq requirements, there can be no assurance that our Class A common stock price has historically fallen as well. We may experience similar outcomeswon't be subject to delisting proceedings in the future if our stock price continues to trackfuture.
On December 13, 2022, we received a letter from the pricelisting qualifications department of bitcoin. Furthermore, ifThe Nasdaq Stock Market LLC
(“Nasdaq”) notifying us that for the market for bitcoin company stocks orprior 30 consecutive business days the stock market in general experiences a loss of investor confidence, the tradingbid price of our stock could decline for reasons unrelated to our business, operating results or financial condition. The trading price of our class A common stock could be subject to arbitrary pricing factors that are not necessarily associated with traditional factors that influence stock prices or the value of non-cryptocurrency assets such as revenue, cash flows, profitability, growth prospects or business activity levels since the value and price, as determined by the investing public, may be influenced by future anticipated adoption or appreciation in value of cryptocurrencies or blockchains generally, factors over which we have little or no influence or control.
Additionally, there are many other factors that are beyond our control that may materially adversely affect the market price of our class A common stock, the marketability of our class A common stock and our ability to raise capital through equity financings. These factors include, but are not limited to, the following:
•the underlying volatility in pricing of, and demand for, energy and/or bitcoin;
•price and volume fluctuations in the stock markets generally which create highly variable and unpredictable pricing of equity securities;
•actual or anticipated variations in our annual or quarterly results of operations, including our earnings estimates and whether we meet market expectations with regard to our earnings;
•significant volatility in the market price and trading volume of securities of companies in the sectors in which our business operates, which may not be related to the operating performance of these companies and which may not reflect the performance of our businesses;
•loss of a major funding source;
•operating performance of companies comparable to us;
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•changes in regulations or tax law, including those affecting the holding, transferring or mining of cryptocurrency;
•had closed below $1.00 per share, transactions by principal stockholders;
•the Company’s continued listing on the Nasdaq;
•recruitment or departure of key personnel;
•geopolitical factors, including Russia’s invasion of Ukraine;
•general economic trends and other external factors including inflation and interest rates;
•increased scrutiny by governmental authorities or individual actors or community groups regarding our business, our competitors or the industry in which we operate;
•publication of research reports by analysts and others about us or the cryptocurrency mining industry, which may be unfavorable, inaccurate, inconsistent or not disseminated on a regular basis;
•sentiment of retail investors about our class A common stock and business generally (including as may be expressed on financial trading and other social media sites and online forums);
•speculation in the media or investment community about us or the cryptocurrency industry more broadly; and
•the occurrence of any of the other risk factors included in this Quarterly Report on Form 10-Q.

Our failure to meet the minimum closing bid price required by the continued listing requirements of Nasdaq listing rules (the "Bid Price Requirement"). The Nasdaq rules provide a period of 180 calendar days in which to regain compliance before a delisting. We regained compliance by effecting a 1-for-10 reverse stock split, which became effective on May 16, 2023, and subsequently, the closing price of our Class A common stock closed above $1.00 per share for more than 10 consecutive trading days.

On June 15, 2023, we received a letter from the listing qualifications department of Nasdaq notifying us that for the prior 30 consecutive business days the Company's Market Value of Publicly Held Shares ("MVPHS") had been below the listing requirement of $15 million. The Nasdaq could resultrules provide a period of 180 calendar days in which to regain compliance before a de-listingdelisting. On July 20, 2023, we received a letter from the listing qualifications department of the Nasdaq informing us that we had regained compliance as the Company's MVPHS exceeded $15 million for 10 consecutive business days.

Compliance with certain Nasdaq listing requirements depends upon the price of the Company's Class A common stock, which may be impacted by market factors not within the control of the Company. There can be no assurances that we will be able to maintain compliance with Nasdaq’s listing requirements in the future. In the event we were to fall out of compliance with Nasdaq's listing requirements, we would seek to take the appropriate actions within the 180 day cure period to regain compliance with Nasdaq listing requirements, but we can provide no assurances that we would be successful doing so and prevent a delisting of our classClass A common stock.
If we fail In the event that a delisting of our Class A common stock were to satisfy the minimum closing bid price requirement of Nasdaq, steps may be taken by Nasdaq to de-list our securities. Such a de-listingoccur, it would likely have a negative effect on the price and liquidity of our classClass A common stock and wouldas well as impair our ability to sell or purchaserepurchase our classClass A common stock if and when we might wish to do so. In the event of a de-listing, we would take actions to restore our compliance with Nasdaq’s listing requirements, but we can provide no assurance that any such action taken by us would allow our class A common stock to become listed again, stabilize the market price or improve the liquidity of our class A common stock, or prevent our class A common stock from dropping below the Nasdaq minimum bid price requirement.
Risks Related to Our Business Generally
Our business is subject to substantial level of indebtednessenergy regulation and our current liquidity constraints couldmay be adversely affect our financial conditionaffected by legislative or regulatory changes relating to climate change or policies regarding cryptocurrency mining, as well as liability under, or any future inability to comply with, existing or future energy regulations or requirements.

Our business is subject to extensive U.S. federal, state and local laws. Compliance with, or changes to, the requirements under these legal and regulatory regimes may cause us to incur significant additional costs or adversely impact our ability to servicecontinue operations as usual or compete on favorable terms with competitors. Failure to comply with such requirements could result in the shutdown of a non-complying facility, the imposition of liens, fines, and/or civil or
criminal liability and or costly litigations before the agencies and/or in state of federal court. Changes to these laws and regulations could result in temporary or permanent restrictions on certain operations at our indebtedness, which could negatively impact your abilityfacilities, including power generation or use in connection with datacenter operations, and compliance with, or opposing such regulation, may be costly.

The regulatory environment has undergone significant changes in the last several years due to recover your investment in our common stock.
Liquidity risk is the risk that we will not be able to meet our financial obligations as they fall due. We currently settle our financial obligations out of cashstate and cash equivalents. We have a planning and budgeting process to help determine the funds required to support our normal spending requirements on an ongoing basis and our expansion plans.
We have a substantial amount of indebtedness, which requires significant interest payments. As of September 30, 2022, we and our subsidiaries had approximately $176 million aggregate principal amount of indebtedness outstanding. Our substantial level of indebtednessfederal policies affecting wholesale competition and the current constraintscreation of incentives for the addition of large amounts of new renewable generation and, in some cases, transmission. These changes are ongoing, and we cannot predict the future design of the wholesale power markets or the ultimate effect that the changing regulatory environment will have on our liquidity could have important consequences,business.
Various governmental and regulatory bodies, including legislative and executive bodies, in the following:
•we must use a substantial portionUnited States and in other countries may adopt new laws and regulations, the direction and timing of our cash flow from operations to pay interestwhich may be influenced by changes in the governing administrations and principal on our indebtedness, which reduces or will reduce funds available to us for other purposes,major events in the cryptocurrency industry. For example, following the failure of several prominent crypto trading venues and lending platforms, such as working capital, capital expenditures, other general corporate purposesFTX, BlockFi, Celsius Networks, Voyager and potential acquisitions;
•our ability to refinance such indebtedness or to obtain additional financing for working capital, capital expenditures, acquisitions or general corporate purposes may be impaired;
•our leverage may be greater than that of some of our competitors, which may put us at a competitive disadvantage and reduce our flexibility in responding to current and changing industry and financial market conditions;
•there are significant constraints on our ability to generate liquidity through incurring additional debt; andThree
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Arrows Capital in 2022 (the “2022 Events”), the U.S. Congress expressed the need for both greater federal oversight of the cryptocurrency industry and comprehensive cryptocurrency legislation. In the near future, various governmental and
regulatory bodies, including in the United States, may introduce new policies, laws, and regulations relating to crypto
assets and the cryptocurrency industry generally, and crypto asset platforms in particular. The failures of risk management and other control functions at other companies that played a role in the 2022 Events could accelerate an
existing regulatory trend toward stricter oversight of crypto asset platforms and the cryptocurrency industry. It is uncertain as to what effect stricter oversight and increased regulation on the cryptocurrency industry may have on the prices of bitcoin or the costs of regulatory compliance, both of which may impact our results of operations in the future and the market value of our common stock.
•
In addition, in some of these markets, interested parties have proposed material market design changes, including the
elimination of a single clearing price mechanism, as well as proposals to reinstate the vertically-integrated monopoly
model of utility ownership or to require divestiture by generating companies to reduce their market share. If competitive
restructuring of the electric power markets is reversed, discontinued, delayed or materially altered, our business
prospects and financial results could be negatively impacted. In addition, since 2010, there have been a number of
reforms to the regulation of the derivatives markets, both in the United States and internationally. These regulations,
and any further changes thereto, or adoption of additional regulations, including any regulations relating to position
limits on futures and other derivatives or margin for derivatives, could negatively impact our ability to hedge our
portfolio in an efficient, cost-effective manner by us, among other things, potentially decreasing liquidity in the forward
commodity and derivatives markets or limiting our ability to utilize non-cash collateral for derivatives transactions.
we
The digital asset exchanges on which cryptocurrencies, including bitcoin, trade are relatively new and largely unregulated, and thus may be more vulnerableexposed to economic downturn, further declinesfraud and failure. Such failures may result in a reduction in the price of bitcoin and other cryptocurrencies and can adversely affect an investment in us.

Digital asset exchanges on which cryptocurrencies trade are relatively new and, in most cases, largely unregulated. Many digital exchanges do not provide the public with significant information regarding their ownership structure, management teams, corporate practices or increasesregulatory compliance. As a result of these factors, along with the recent bankruptcies of exchanges such as FTX and BlockFi, the marketplace may lose confidence in, or may experience problems relating to, cryptocurrency exchanges, including prominent exchanges handling a significant portion of the volume of digital asset trading.

Negative perception, a lack of stability in the pricedigital asset exchange market and the closure or temporary shutdown of natural gas,digital asset exchanges due to fraud, business failure, hackers or malware, or government-mandated regulation may reduce confidence in digital asset networks and other adverse developmentsresult in our business.
We and our subsidiaries may be able to incur substantial additional indebtednessgreater volatility in the future, subject to the restrictions contained in the agreements governing our indebtedness. To the extent new indebtedness is added to our debt levels, the related risks that we now face could intensify.
Our ability to meet our expenses and to make future principal and interest payments in respect of our debt depends on, among other factors, our operating performance, competitive developments and financial market conditions, all ofbitcoin prices, which are significantly affected by financial, business, economic and other factors. We are not able to control many of these factors. Given current industry and economic conditions, our cash flow may not be sufficient to allow us to pay principal and interest on our debt and meet our other obligations.
It may take significant time, expenditure or effort for us to grow our business, including our cryptocurrency datacenter operations, through acquisitions, and our efforts may not be successful.
The number of bitcoin and other cryptocurrency datacenter companies has greatly increased in recent years. As we and other bitcoin/cryptocurrency datacenter companies seek to grow mining capacity or access additional sources of electricity to power growing datacenter operations, the acquisition of existing cryptocurrency datacenter companies and standalone electricity production facilities may become an attractive avenue of growth. Currently, we source our electricity for our cryptocurrency datacenter facility in New York from our captive 106 MW power generation facility. If we determine to expand our operations, we may want to do so through the acquisition of additional bitcoin or other cryptocurrency datacenter businesses or electricity generating power plants. We acquired and commenced operations at our Spartanburg, SC facility in December 2021; however, there can be no assurance that additional expansions will commence or that the expected benefits and advantages of such expansion will be realized. Further attractive acquisition targets may not be available to us for a number of reasons, such as growing competition for attractive targets, economic or industry sector downturns, geopolitical tensions, regulatory changes, environmental challenges, increases in the cost of additional capital needed to close business combination or operate targets post-business combination. Our inability to identify and consummate acquisitions of attractive targets could have a material and adversedirect impact on our long-term growth prospects, whichprofitability. These potential consequences of a digital asset exchange’s failure could materially adversely affect our results of operations, strategyoperations. Additionally, to the extent investors view our common stock as linked to the value of bitcoin, these potential consequences of a bitcoin trading venue’s failure could have a material adverse effect on the market value of our common stock.

We maintain cash deposits in excess of federally insured limits. Adverse developments affecting financial institutions,
including bank failures, could adversely affect our liquidity and financial performance.
Additionally,
We maintain domestic cash deposits in Federal Deposit Insurance Corporation (“FDIC”) insured banks that exceed the FDIC insurance limits. We also maintain cash deposits in foreign banks where we operate, some of which are not insured or are only partially insured by the FDIC or similar agencies. Bank failures, events involving limited liquidity, defaults, non-performance, or other adverse developments that affect financial institutions, or concerns or rumors about such events, may engagelead to liquidity constraints. For example, on March 10, 2023, Silicon Valley Bank failed and was taken into receivership by the FDIC. At the time that Silicon Valley Bank failed, we maintained balances there in excess of the federal insured limit and also, through a subsidiary, processed payroll there. The failure of a bank, or other adverse conditions in the acquisition of other companies, investments, joint venturesfinancial or credit markets impacting financial institutions at which we maintain balances, could adversely impact our liquidity and strategic alliances outside of our Support Services segment’s current line of business to design and develop new technologies and products, to strengthen competitiveness by scaling up and to expand our existing business line into new regions. Such transactions, especially in new lines of business, inherently involve risk due to the difficulties in integrating operations, technologies, products and personnel. Integration issues are complex, time-consuming and expensive and, without proper planning and implementation, may adversely affect the existing business. We may incur significant acquisition, administrative and other costs in connection with these transactions, including costs related to integration or restructuring of acquired businesses. These investments may not provide a return or lead to an increase in our Support Services segment’s operating results, and the benefits of these investments may not be obtained.financial performance. There can be no assurance that these transactionsour deposits in excess of the FDIC or other comparable insurance limits will be beneficial to our Support Services segment’s results of operationsbackstopped by the U.S. or applicable foreign government, or that any bank or financial condition. Even assuming these transactions are beneficial, there can be no assurance thatinstitution with which we do business will be able to successfully integrateobtain needed liquidity from other banks, government institutions, or by acquisition in the new business lines acquiredevent of a failure or achieve all or any of the initial objectives of these transactions.liquidity crisis.

We have been, and may be in the future, the subject of legal proceedings, including governmental investigations, relatingrequired to our products or services.
On December 17, 2020, certain parties filedpay deferred sales and use taxes pursuant to an Article 78 petitioneconomic incentive program that we have entered into with the Supreme Court of the State of New York, Yates County, that challengesSouth Carolina.

In March 2022, the Town of Torrey’s site plan review for the planned expansion of our cryptocurrency datacenter. We were joined in the petition as a necessary party. The petition asserted, among other things, a violation ofCompany entered into an economic development tax incentive program with the State of New York Environmental Quality Review ActSouth Carolina with respect to sales and use taxes. The economic development tax incentive program permits for failing to identify all areas of environmental concern or appropriately review the potential environmental impacts of the planned expansion of our data center. On April 7, 2022, the Supreme Court denied the petition with prejudice, upholding the Town of Torrey’s site plan review on multiple, independent grounds. A notice of appeal was filed but the appeal was not perfected by the October 20, 2022 deadline; therefore, the appeal is deemed abandoned.From time to time, we may become involved in various legal proceedings that arise in the ordinary course of businessdeferral
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Risk Relatedof the applicable taxes, and their eventual forgiveness, provided that the Company satisfies the relevant economic criteria applicable to Bitcointhe program. Under the State sales and Cryptocurrency Industry
Our future success will depend significantlyuse tax program, the Company is required to make a $50 million capital investment at the Spartanburg site and maintain 25 full time jobs with an average compensation level of 150% of the per capita income of Spartanburg County. The requisite capital investment and job creation under the State sales and use tax program are required to be effected within five (5) years; i.e.; by March of 2027. To date, the Company had met the investment criteria with respect to the State sales and use exemption prior to the sale of the South Carolina Facility on November 9, 2023, however the job creation criteria under the State sales and use tax program has not been met. If the Company is unable to re-negotiate the economic incentive package with the State of South Carolina, or further develop the remaining 153 acres on the pricesite retained by the Company to include the creation of bitcoin, which is subjectthe required jobs in order to risksatisfy the State sales and has historically been subject to wide swings and significant volatility.
Our operating results depend significantly onuse tax program, the price of bitcoin because it is the only cryptocurrency asset that we currently mine. Specifically, our revenues from our cryptocurrency datacenter operations are based principally on two factors: (1) our mining payouts from our third-party mining pools; and (2) the price of bitcoin. Accordingly, a decrease in the price of bitcoin will result in a decrease in our revenues. Moreover, the price of bitcoin has historically been subject to wide swings and significant volatility. This means that our operating resultsCompany may be subject to significant volatility. Bitcoin prices have historically been volatile and impacted by a variety of factors, including market perception, the degree to which bitcoin is accepted as a means of payment the volume of purchases and sales of bitcoin by market participants, real or perceived competition from alternative cryptocurrencies as well as other risks and uncertainties described in this Quarterly Report on Form 10-Q. For example, the price of bitcoin ranged from a low of approximately $30,000 to a high of approximately $68,000 during 2021, and has ranged from approximately $18,000 to approximately $48,000 year-to date as of September 30, 2022. Ongoing depressed cryptocurrency prices, including the recent decrease in the price of bitcoin, have resulted in, and could further result in, adverse effects on our business, financial condition, results of operations and growth prospects, which could significantly impact our ability to continue as a going concern or to pursue our strategy at all.
While some retail and commercial outlets accept bitcoin as a means of payment, consumers’ payment by bitcoin to such retail and commercial outlets remains limited. Conversely, a significant portion of bitcoin demand is generated by speculators and investors seeking to profit from the short- or long-term holding of bitcoin. Many industry commentators believe that bitcoin’s best use case is as a store of wealth, rather than as a currency for transactions, and that other cryptocurrencies having better scalability and faster settlement times will better serve as currency. This could limit bitcoin’s acceptance as transactional currency. A lack of expansion by bitcoin into retail and commercial markets, or a contraction of such use, may result in increased volatility or a further reduction in the price of bitcoin, either of which could adversely affect our results of operations.
As a result of the depressed price of bitcoin as compared to its historical high, the cryptocurrency industry has experienced increased credit pressures that could result in additional demands for credit support by third parties or decisions by banks, surety bond providers, investors or other companies to reduce or eliminate their exposure to bitcoin and the cryptocurrency industry as a whole, including our company. These credit pressures have had, and may continue to have, a material impact on our business, including, for example, banks, investors and other companies reducing or eliminating their exposureexempted taxes related to the cryptocurrency industry, which could materiallypurchases of equipment and adversely impact our business, financial conditionutilities from April 1, 2022 through the date of sale, plus interest and resultspenalties. The incurring of operations.
Risks Related to our Power Generation Operations
Obtaining and complying with required government permits and approvalsthis tax liability may be time-consuming and costly.
We and our affiliates are required to obtain, and to comply with, numerous permits and licenses from federal, state and local governmental agencies. The process of obtaining and renewing necessary permits and licenses can be lengthy and complex, requiring up to months or years for approval depending on the nature of the permit or license and such process could be further complicated or extended in the event regulations change. In addition, obtaining such permit or license can sometimes result in the establishment of conditions that create a significant ongoing impact to the nature or costs of operations or even make the project or activity for which the permit or license was sought unprofitable or otherwise unattractive. In addition, such permits or licenses may be subject to denial, revocation or modification under various circumstances. Failure to obtain or comply with the conditions of permits or licenses, or failure to comply with applicable laws or regulations, may result in the delay or temporary suspension of our operations and electricity sales or the curtailment of our delivery of electricity to our customers and may subject us to penalties and other sanctions. Although various regulators routinely renew existing permits and licenses, renewal of our existing permits or licenses could be denied or jeopardized by various factors, including failure to provide adequate financial assurance for closure, failure to comply with environmental, health and safety laws and regulations or permit conditions, local community, political or other opposition and executive, legislative or regulatory action.
On June 30, 2022, the NYSDEC denied our Title V Air Permit renewal application. Our existing Title V Air Permit allows us to fire natural gas to produce electricity in accordance with the permit requirements, which remains valid and in effect
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until four months after the final resolution of the appeal process. We intend to challenge NYSDEC’s decision, however, this challenge will cause us to incur additional costs and will result in the diversion of management attention, which could adversely affect our business, financial condition and results of operations.
Our inability to procure and comply with the permits and licenses required for these operations, including the Title V Air Permit, or the cost to us of such procurement or compliance, could have a materialan adverse effect on us. In addition, new environmental legislation or regulations, if enacted, or changed interpretations of existing laws, may cause activities atthe business and our facilities to need to be changed to avoid violating applicable laws and regulations or eliciting claims that historical activities at our facilities violated applicable laws and regulations. In addition to the possible imposition of fines in the case of any such violations, we may be required to undertake significant capital investments and obtain additional operating permits or licenses, which could have a material adverse effect on us.financial condition.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
On April 7,September 19, 2022, weGreenidge entered into a common stock purchase agreement, as amended by Amendment No. 1 to Common Stock Purchasethe ATM Agreement dated as of April 13, 2022 (as amended, the “2022 Purchase Agreement”) with B. Riley Principal Capital, LLC (“BRPC”), pursuant to which we haveSecurities and Northland Securities, Inc. Under the rightATM Agreement, B. Riley Securities uses commercially reasonable efforts to sell, to BRPC up to $500 million inon Greenidge’s behalf, shares of classGreenidge’s Class A common stock requested to be sold by Greenidge, consistent with B. Riley Securities normal trading and sales practices, under the terms and subject to certain limitationsthe conditions set forth in the ATM Agreement. Greenidge has the discretion, subject to market demand, to vary the timing, prices and number of shares sold in accordance with the ATM Agreement. B. Riley Securities may sell shares of the Company’s Class A common stock by any method permitted by law deemed to be an "at the market offering" as defined in Rule 415(a)(4) promulgated under the Securities Act. Greenidge will pay B. Riley Securities commissions for its services in acting as sales agent, in an amount equal to up to 5.0% of the gross proceeds of all Class A common stock sold by B. Riley as sales agent under the ATM Agreement. Pursuant to the registration statement filed registering shares to be sold in accordance with the terms of the ATM Agreement, Greenidge may offer and sell shares of its Class A common stock up to a maximum aggregate offering price of $22,800,000. Under the terms of the Promissory Note Amendment (as defined below), Greenidge is required to make mandatory monthly debt repayments under the Promissory Note of 15% of the net proceeds of sales of equity, including sales under the ATM Agreement and the satisfactionEquity Purchase Agreement. See "Management’s Discussion and Analysis of specified conditionsFinancial Condition And Results of Operations Management’s Discussion And Analysis of Financial Condition and Results of Operations For Greenidge—Recent Transactions—B. Riley Promissory Note" for further details.
From October 1, 2022 through November 10, 2023, Greenidge issued 2,920,816 shares which included 133,333 shares issued to B. Riley Commercial on February 1, 2023, as an amendment fee for an amendment to the Secured Promissory Note in favor of B. Riley Commercial. See Note 9, "Stockholder's Equity", in the 2022 PurchaseNotes to Unaudited Condensed Consolidated Financial Statements for further details.

The sales made pursuant to the ATM Agreement from timewere made pursuant to time overa registration statement filed with the 24-month period commencing on April 28, 2022. From April 28, 2022 to November 11, 2022, weSEC.

In May 2023, Greenidge issued 3,234,19354,348 unregistered shares of ourits class A common stock to BRPC under the 2022 Purchase Agreement. We intend to use the net proceedsa vendor as payment for general corporate purposes, including funding capital expenditures, future acquisitions, investments and working capital and repaying indebtedness.

The sales of the above securities were deemed to be exempt from registration under the Securities Act in reliance upon Section 4(a)(2) of the Securities Act. The recipients of the securities in each of these transactions represented their intentions and appropriate legends were placed upon the stock certificates issued in these transactions.services provided.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Mine Safety Disclosures
Not applicable.
Item 5. Other Information
Not applicable.As disclosed in Note 14, “Subsequent Events”, to Item 1 of this Quarterly Report (and elsewhere in this Quarterly Report), on November 9, 2023, we closed the sale of the South Carolina Facility to NYDIG. We have included as Exhibit 99.1 to this Quarterly Report certain, required, unaudited pro forma financial statements giving effect to the sale of the South Carolina Facility (the “pro forma financial information”). The pro forma financial information is presented to illustrate the estimated effect of the sale of the South Carolina Facility on the Company’s consolidated financial results, and has been derived from the Company’s historical consolidated financial statements prepared in accordance with U.S. GAAP. The pro forma financial information does not purport to represent the Company’s historical results of operations or financial condition and does not purport to project the Company’s future results of operations or financial condition. The pro forma adjustments included
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in the pro forma financial information contained in Exhibit 99.1 are based on currently available data and assumptions that the Company believes are reasonable.
Item 6. Exhibits
The exhibits listed on the Exhibit Index are filed or furnished as part of this Quarterly Report.
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Exhibit Index
Exhibit No.Description
3.110.1
10.110.2
10.3
10.4
10.5
10.6
10.210.7
10.3
10.410.8*
At Market Issuance SalesAsset Purchase Agreement, dated September 19, 2022,November 9, 2023, by and among (i) NYDIG ABL LLC, a Delaware limited liability company ("NYDIG"), (ii) SC 1 Mining Site LLC, a Delaware limited liability company and Affiliate of NYDIG (the "Purchaser," and together with NYDIG, the "NYDIG Parties" and each, a "NYDIG Party"), (iii) Greenidge Generation Holdings Inc., B. Riley Securities,a Delaware corporation ("Holdings"), (iv) Greenidge South Carolina, LLC, a Delaware limited liability company and wholly-owned direct subsidiary of Holdings ("Property Seller Parent," and together with Holdings, the "Specified Asset Sellers" and each of them, a "Specified Asset Seller"), (v) 300 Jones Road LLC, a Delaware limited liability company and wholly-owned indirect subsidiary of Property Seller Parent ("Property Seller," and together with the Specified Asset Sellers, the "Sellers" and each of them, a "Seller"), and (vi) solely for purposes of Section 8, each of the wholly-owned direct and indirect Subsidiaries of Holdings listed on Annex I thereto (collectively, the "Seller Affiliates," and together with Sellers, the "Seller Parties" and each of them, a "Seller Party").
10.9*
Real Estate Purchase and Sale Agreement dated November 9, 2023, by and among (i) SC 1 Mining Site LLC, a Delaware limited liability company ("Purchaser"), (ii) Greenidge Generation Holdings Inc., a Delaware corporation ("Holdings"), (iii) Greenidge South Carolina LLC, a Delaware limited liability company and Northland Securities,wholly-owned direct Subsidiary of Holdings ("Property Seller Parent"), (iv) 300 Jones Road LLC, a Delaware limited liability company and wholly-owned indirect Subsidiary of Property Seller Parent ("Property Seller" and together with Holdings and Property Seller Parent, the "Sellers" and each of them, a "Seller"), and (v) solely for purposes of Article VII, each of the wholly-owned direct and indirect Subsidiaries of Holdings listed on Annex I of the APA (as hereafter defined) (collectively, the "Seller Affiliates," and together with Sellers, the "Seller Parties" and each of them, a "Seller Party").
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10.10*
10.11*
31.1*
31.2*
32.1*
32.2*
EX_99.1
EX_99.2
101Interactive data files pursuant to Rule 405 of Regulation S-T: (i) the Balance Sheets, (ii) the Statements of Operations, (iii) the Statements of Cash Flows and (iv) the Notes to Unaudited Condensed Interim Consolidated Financial Statements.
104Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

*Furnished herewith.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Greenidge Generation Holdings Inc.
Date: November 14, 20222023By:/s/ David Anderson
David Anderson
Chief Executive Officer
 
Date: November 14, 20222023By:/s/ Robert LoughranChristian Mulvihill
Robert LoughranChristian Mulvihill
Chief Financial Officer
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