CINCINNATI - GRIID Infrastructure Inc. (NASDAQ: GRDI), a company specializing in the development and operation of bitcoin mining facilities, is set to expand its operations with a new 60 MW mining site in Jackson, Tennessee. The new facility will be situated on a 15-acre plot already owned by the company, with the local utility, Jackson Energy Authority, having constructed a substation on the property to facilitate the commencement of operations within the year.
CEO Trey Kelly highlighted the favorable business climate and the availability of reliable and affordable low-carbon electricity in the Tennessee Valley as key factors in their decision to develop in the area. The company's expansion into Central Tennessee is seen as a further investment in the state, which is quickly becoming a hub for the bitcoin industry in the U.S.
GRIID currently operates three other mining sites in East Tennessee and a development, deployment, and equipment repair center in Rutledge, Tennessee. The company's presence in Jackson is welcomed by local officials, including Mayor Scott Conger, who is known for his positive stance on bitcoin and has considered integrating it into the city's payroll system.
The partnership with GRIID is also beneficial for the local economy, according to Monte Cooper, President and CEO of Jackson Energy Authority. He noted that attracting a bitcoin mining company like GRIID to Jackson would increase electricity sales, boost JEA revenues, and generate additional tax receipts for the city without burdening ratepayers, as the costs for the substation are covered by GRIID.
GRIID, founded in 2018 and operating mining facilities since 2019, has established long-term power relationships to secure affordable, environmentally responsible power, supporting its vertically integrated self-mining business model.
This news article is based on a press release statement from GRIID Infrastructure Inc.
InvestingPro Insights
As GRIID Infrastructure Inc. (NASDAQ: GRDI) gears up for expansion with its new mining site in Tennessee, investors are eyeing the company's financial health and market performance. According to InvestingPro data, GRIID's market capitalization stands at 135.88 million USD, reflecting the size of the company in the current market. Despite the optimistic expansion news, the company's stock has experienced significant volatility and a notable decline, trading near its 52-week low with a price of 2.0 USD at the previous close. This is further underscored by a one-week price total return of -61.04%, indicating a sharp decrease in stock value recently.
An InvestingPro Tip suggests that GRIID has been quickly burning through cash, which could be a concern for potential investors considering the company's aggressive expansion plans. Moreover, the stock has not only taken a big hit over the last week but also over the last month, with the price having fallen significantly. These factors, combined with the company's weak gross profit margins of -21.46% and a negative operating income margin of -95.02%, as per the last twelve months as of Q2 2023, suggest that GRIID's financial footing may be less stable than its expansion efforts might imply.
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