Greenridge, the crypto miners’ company, to raise $22.8 Million October 10, 2022
Greenridge, the crypto miners’ company, to raise $22.8 Million <BR><BR><BR>
Greenridge, the crypto miners’ company, to raise $22.8 Million
Greenridge Generation, a US-based crypto miners’ firm, aims to raise $22.8 million. A 3rd October filing of the US (SEC) Securities and Exchange Commission highlighted that firms seek to do so in at-the-market offerings. The bitcoin mining company has signed a sales deal with B. Riley Securities for the class A common stock offer, which will give the investment bank up to 5% of the proceeds from the offer.
The company plans to utilize the net proceeds from the offering for the general corporate purpose, which may be inclusive of, funding acquisitions, capital expenditures, payment, and refinancing of all or a portion of the debts, and working capital, after deducting the B.Riley’s commissions and other expenses.
In March, the mining company was able to secure $100 million in funds to expand its operations in the US. Out of $100 million, $81.4 million was raised through a loan from an affiliate of NYDIG and $26.5 million as a promissory note with a B. Riley Financial, Inc cohort.
In June, it was announced by Greenridge that its mining production was increased by 18%. However, the company reported a loss of $107.9 million in the second quarter and is looking to raise funds. As per its monthly operating update, the company tends to produce approximately 230 Bitcoins, indicating an increment of about 18% as compared to May, when the company mined 195 Bitcoin. The company further disclosed that it increased its hash rate capacity to 2.5 exhash per second (EH/s) from 1.7 EH/s with a mining capacity to 27,500 mining machines in June, from 20,400 mining machines in the last month. An additional 200 mining machine has been ordered by the company, which is at the transit stage, as they will be installed upon their arrival.
The company has seized its expansion plan in Texas after it suffers losses in the second quarter. It said,” sudden change in the mining economics” has contributed to the difference in plans. However, the company will continue to focus on its New York and South Carolina Locations. But neither did the company receive any good news from its New York location since the Environmental Conservation Department of New York denied the company’s air permit renewal in June as it failed to meet the requirements of the state climate laws. The department stated that the company’s application was inconsistent with the climate goal as stated by the CLCPA (Climate Leadership and Community Protection Act), which aims to reduce greenhouse gas emissions by at least 85% by 2050.