Greenidge Generation Holdings Inc. (NASDAQ:GREE), a company specializing in finance services and crypto assets, announced an expansion to its equity incentive plan. On November 13, 2024, the company's Board of Directors approved an increase of 700,000 shares in the maximum aggregate number of shares that may be issued under the plan, raising the total from 883,111 to 1,583,111 shares of Class A common stock.
This decision comes as part of the Second Amended and Restated 2021 Equity Incentive Plan, aimed at providing additional incentives to the company’s employees and directors. The increase is set to become effective 40 calendar days after the date that the Notice of Internet Availability of the Information Statement is sent or given to the company's stockholders.
Entities controlled by Atlas (NYSE:ATCO) Capital Resources GP LLC, which as of the Record Date, held a significant portion of the company's total voting power, have executed a written consent approving the Authorized Share Increase and the adoption of the Second Amended and Restated Plan.
In other recent news, Greenidge Generation Holdings Inc. has been granted an extension on the suspension of operations at its Dresden, New York facility until November 14, 2024, following a legal challenge over the denial of the facility's Title V Air Permit renewal. The company also reported significant financial developments, including a reduction in SG&A expenses by approximately $9.1 million year-to-date compared to the same period in 2023.
In the cryptocurrency mining sector, Greenidge produced approximately 167 bitcoin in the third quarter, with 54 mined through proprietary operations and 113 for datacenter hosting clients.
The company's mining fleet consists of approximately 29,000 bitcoin
miners, with an estimated total hash rate capacity of 3.1 EH/s.
However, the company reported a net loss from continuing operations of $6.6 million, with an adjusted EBITDA loss of $0.4 million. Greenidge ended the quarter with approximately $11.3 million in cash and digital assets, including 60 bitcoin, and around $69.5 million in debt. Looking forward, Greenidge plans to continue upgrading its miner fleet with newer generation miners, secure additional sites for development, and potentially monetize certain assets. These are recent developments.
InvestingPro Insights
Greenidge Generation Holdings Inc.'s recent decision to expand its equity incentive plan comes at a time when the company faces significant financial challenges. According to InvestingPro data, GREE has a market capitalization of just $28.97 million, reflecting its small-cap status. The company's revenue for the last twelve months as of Q3 2024 stood at $64.38 million, with a concerning revenue decline of 40.84% in the most recent quarter.
InvestingPro Tips highlight that GREE is operating with a significant debt burden and is quickly burning through cash. These factors may have influenced the company's decision to increase its equity incentive plan, potentially as a means to retain and motivate key personnel during a challenging period. The stock's volatility, as noted in another InvestingPro Tip, is evident in its strong 45.11% return over the last three months, despite a 46.17% decline over the past year.
It's worth noting that analysts do not anticipate GREE to be profitable this year, which aligns with the company's negative operating income of $11.31 million in the last twelve months. This context provides insight into why Greenidge might be leveraging equity incentives as a compensation tool in lieu of cash.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for GREE, which could provide valuable insights into the company's financial health and market position.
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