Greenidge Crypto Mining Firm Secures $108M to Power its Expansion Drives

Greenidge Generations Holdings Inc, a Nasdaq-listed crypto mining and data center has announced the successful completion of two financing rounds in which it pulled approximately $108 million. 

As announced by the company, the financing rounds featured an “approximately $81.4 million facility with an affiliate of NYDIG, secured by certain Bitmain ANTMINER S19 J Pro equipment delivering in 2022, and a $26.5 million secured note with an affiliate of B. Riley Financial, Inc. secured by the real estate at Greenidge’s facility in Spartanburg, SC.”

According to the company, the new capital raised will be very instrumental in helping to power its expansionary drives for the whole of 2022.

“These financings are consistent with Greenidge’s established strategy of using non-dilutive capital to fund our expansion,” said Greenidge’s CEO Jeff Kirt. “This is a transformative year for Greenidge as we expect to more than triple our datacenter capacity to 4.7 EH/s, with the vast majority of the capacity expansion focused outside of the company’s original site in New York. Three months after commencing operations at our Spartanburg location, the facility represents more than 15% of the Greenidge’s aggregate hash rate.”

Greenidge’s crypto mining operation is hinged on environmental sustainability tenets as it is committed to 100% carbon-neutral data center operations at all of its locations by utilizing low-carbon sources of energy and offsetting its carbon footprint. The company planned to establish a $264 million crypto mining hub in South Carolina, with the new funding round slated to help in actualizing this.

Greenidge Crypto Funding, one of the Many on Record

The Greenidge funding is one of the most prominent funding rounds received by a crypto mining firm, drawing on the broader hype around the digital currency ecosystem. In order to build out the capacity to tap into the growing mining industry, firms like Argo Blockchain once secured over $20 million in debt funding from Galaxy Digital in a bid to acquire new miners and build out its mining center in West Texas.

China has cracked down on mining activities, the bulk of the crypto hashrate has now been shifted to the United States, and established outfits like Greenidge are all the better for it. On the part of Greenidge, CEO Kirt said the ability to secure the funds showcases the firm’s ability to attract support through proper relationship building.

From Greenidge to Argo Blockchain, what is coming off as the obvious reality is that more related funding is bound to make its way into the PoW mining ecosystem over time.