Greenidge Generation: A Diverse Crypto Story

Greenidge Generation: A Diverse Crypto Story

Greenidge Generation (GREE) is one of the most interesting stories in the crypto world that we’ve seen during this bull market. Nonetheless, I am currently neutral on the stock. (See Analysts’ Top Stocks on TipRanks)

Greenidge owns a vertically integrated bitcoin mining and 106 MW power generation facility in the town of Torrey, New York. The company, in theory, enjoys significant competitive advantages, including low fixed costs, an efficient mining fleet, in-house operational expertise, and low power costs due to its access to the Millennium Pipeline price hub. This proximately provides relatively low market rates for natural gas.

The company started bitcoin mining in 2018 and had 32 MW of mining capacity as of the end of Q2. The company’s goal is to expand to 500 MW of mining capacity by 2025. On September 15th, Greenidge placed an order for 10,000 S19j Pro bitcoin miners from Bitmain in order to facilitate this expansion. These mining computers will soon be utilized at a new location to begin development in Spartanburg, South Carolina.