Greenidge Generation Holdings Inc. · NASDAQ:GREE
Greenidge Generation — Investor Presentation (September 2024)
25 slides from Greenidge Generation's investor presentation, September 2024
Slide 1: Investor Presentation
Investor Presentation September 2024
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements The presentation includes certain statements that may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other th
Slide 3: Executive Summary
GREENIDGE WHIHBEEGENERATION Executive Summary
Slide 4: About Greenidge
About Greenidge Greenidge currently builds, maintains and operates data centers focused on bitcoin mining, along with related power and electric infrastructure. Our team’s knowledge of electricity markets and power plants make us a market leader in the construction and operation of data centers. Rev
Slide 5: Our History
Our History Corporate Timeline 2014 2018 2021 2022 2023 2024 Greenidge Debt Reduction Repositioning Greenidge executes purchases first Greenidge launches plan to achieve ▪ Restructurings ▪ Acquisition of facility in Bitcoin operations NASDAQ listing ▪ Asset Sales strategic sites / Dresden, NY power
Slide 6: Greenidge's Unique Capabilities
Greenidge’s Unique Capabilities We know how to run industrial assets and have a strong network of experts in the field who are committed to pursuing operational excellence to drive long-term results at Greenidge Operational Excellence Key Results ▪ Significant base of knowledge relating to 24/7 cont
Slide 7: Greenidge Financials for First Six Months 2024 vs. 2023
Greenidge Financials for First Six Months 2024 vs. 2023 First 6 Months 2023 Results (1) 2024 Progress First 6 Months 2024 Results (1) ▪ Total revenue of $29.9 million ▪ Total revenue of $32.4 million + $2.5 million Revenue ▪ Cryptocurrency datacenter self-mining revenue of ▪ Cryptocurrency datacente
Slide 8: Cost Structure Optimization – Recent Progress
Cost Structure Optimization – Recent Progress Cost Structure Overhaul Investing in Key Sites Mississippi & North Dakota sites expanded to replace hosting sites with Improved cost reporting structure unfavorable cost structures ``` Upgraded Hydro and Air-cooled Pods for Greater Efficiency Expansion o
Slide 9: Our Current Footprint
Our Current Footprint Owned and Operational Sites Expandable Owned Sites Dresden(1) ▪ 106 MW(3) ▪ 20,900 Miners Key Leased Sites ▪ 2,080 PH Conifex ▪ 2 MW (3) Underwood ▪ 750 Miners ▪ 7.5 MW (3) ▪ 80 PH ▪ 2,160 Miners Our Miners Hosted ▪ Expandable at Third Party Site ▪ 200 PH Spartanburg(2) ▪ EPCM
Slide 10: Greenidge's Evolution & Competitive Advantages
Greenidge's Evolution & Competitive Advantages What Greenidge Was Greenidge’s Value Proposition Today Growing real estate portfolio and power access 100% self-mining revenue (entirely beholden to price of bitcoin) Datacenter buildout and operational capabilities Diversified, attractive revenue mix w
Slide 11: What Makes Greenidge Unique?
What Makes Greenidge Unique? Actionable Pipeline of Sites with Real Estate Network Power Expertise Untapped Value © Greenidge Generation Holdings Inc. 11
Slide 12: The New Greenidge Playbook for Value Creation
The New Greenidge Playbook for Value Creation Find Sites with Current / Future Access to Significant Low-Cost Power Acquire Site Determine Best Use For Property and Maximize Power Capacity Option 1: GPU Datacenter for AI/HPC Option 2: Bitcoin Mining a) Add power infrastructure + build datacenter → s
Slide 13: Factors Enabling Greenidge To Execute Playbook
Factors Enabling Greenidge To Execute Playbook Proven Power Plant and Mining Expertise Captive Low-Cost Power and Growing with Network of Actionable Sites Footprint Engineers and electricians on staff with a proven ability to build Dresden Other Sites and operate highly efficient mines Mississippi N
Slide 14: Greenidge's Recent Accomplishments
Greenidge’s Recent Accomplishments 1. 2. 3. 4. Diversify Through Acquisitions Continuing Progress on Debt and Cost Reduction Strategic Growth Opportunities and AI Initiatives Efforts (Ongoing) Best-In-Class Site Buildouts South Carolina Commenced Partnership with Prior to NYDIG sale, expanded site b
Slide 15: Continuing Progress of AI Initiative
1. Continuing Progress of AI Initiative Current State: Limited Power Supply for AI Greenidge is the Solution (1) Proven operators with in-house engineering and electrical “In a middle-ground scenario, by 2027 A.I. servers could use between 85 to 134 capabilities having successfully designed, built a
Slide 16: Case Study: Infinite Reality Data Center
1. Case Study: Infinite Reality Data Center Situation Overview Significant Opportunity for Mutual Growth D D D ▪ Access to power ▪ High demand for Data center Cheaper option to assets convertible power to support multiples are power AI needs and into data centers rapid growth of extremely robust sup
Slide 17: Diversify Through Acquisitions and Best-In-Class Site Buildouts
2. Diversify Through Acquisitions and Best-In-Class Site Buildouts Strategic Actions to Strengthen Revenue and Asset Diversity Underwood, Greenidge deployed 2,160 miners on site with 7.5 MW power capacity lease in North Dakota; additional North Dakota upside from EPCM projects Spartanburg, Greenidge
Slide 18: Diversify Through Acquisitions and Best-In-Class Site Buildouts (Cont.)
2. Diversify Through Acquisitions and Best-In-Class Site Buildouts (Cont.) Existing Diversified Revenue Mix Hosting: 49% Revenue Self-Mining: 36% Revenue Energy: 14% Revenue (First Six Months ’24) (First Six Months ’24) (First Six Months ’24) Diversified source of Full upside exposure to Alternate s
Slide 19: De-Leveraging Efforts
3. De-Leveraging Efforts Since December 2022, restructuring efforts have substantially derisked Greenidge’s balance sheet to reduce total debt by 54% Eliminated B. Riley Debt Less: $10mm Eliminated NYDIG Debt Less: $75mm $157 mm Increased Cash and Digital Assets $72 Less: $10mm mm $62 mm Total Debt
Slide 20: Strategic Growth Opportunities
4. Strategic Growth Opportunities Greenidge Today Greenidge is Positioned for Growth Reduced Debt AI / GPU Hosting / Infrastructure Services Since December 2022, restructuring efforts have substantially derisked Greenidge’s balance sheet to reduce total debt by 54% Development of Properties Reduced
Slide 21: Appendix
GREENIDGE HIME GENERATION Appendix
Slide 22: How Does Greenidge Make Money Self-Mining?
How Does Greenidge Make Money Self-Mining? 1 2 3 Transaction created fee offered to The transaction is broadcast to peer-to- Miners validate the transaction and the bitcoin miners for validating their peer computers known as nodes user’s status using known algorithms transaction 4 5 6 Once verified
Slide 23: How Does Greenidge Make Money Self-Mining? (Cont.)
How Does Greenidge Make Money Self-Mining? (Cont.) Margin = Rewards Less Costs Greenidge hashrate Global mining rewards Equipment Other direct cost of x Bitcoin price x LESS Electricity x x (including transaction fees) efficiency sales Network hashrate Variable costs Greenidge controls Greenidge doe
Slide 24: How Does Greenidge Make Money on Hosting?
How Does Greenidge Make Money on Hosting? How Does Greenidge Make Money on Hosting? Greenidge earns a monthly service fee for 1 Fee Structure operating miners for its customers Greenidge shares in its customers’ success through a 2 % of Miner Gross Profit profit share mechanism Additional Hosting Hi
Slide 25: Reconciliation of Non-GAAP Metrics
Reconciliation of Non-GAAP Metrics Six Months Ended Six Months Ended Amounts denoted in millions June 30, 2024 June 30, 2023 Net loss from continuing operations $ (9.5) $ (18.6) Interest expense, net 3.6 6.7 Depreciation 6.5 7.0 EBITDA (loss) from continuing operations 0.6 (4.9) Stock-based compensa
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