The bitcoin price has been on the rise since the end of the second quarter of this year. But that second quarter left some serious wounds, including a loss of more than $100 million at US bitcoin mining company Greenidge Generation.
As a result, the bitcoin mining company is putting its plans for expansion into Texas on the back burner.
Bitcoin miner is not expanding to Texas for a while
“We have chosen to pause our plans to suspend certain additional sites in our pipeline in the ERCOT market and instead focus our operations on our two existing sites in South Carolina and New York for the time being,” said Greenidgde Generation in a statement. press release.
ERCOT stands for the Electric Reliability Council of Texas and manages the power grid of the state of Texas.
Bitcoin price falls and energy prices rise
The company reported a net loss of $107.9 million in the second quarter. According to the press release, this is largely due to “a one-time, non-cash charge of $71.5 million.”
CEO Jeff Kirt said in the press release that the bitcoin price fell about 60% in the second quarter, while energy prices rose. This created a “challenging earnings environment.” As a result, the company prioritizes liquidity and capital preservation over “aggressive growth.”
More bitcoin but less dollars
Greenidge mined 10.7% more bitcoin (671 BTC) in the second quarter, but saw its revenue drop 17% to $31.3 million compared to the first quarter.
This is also reflected in the share price of Greenidge. The chart below is from Tradingview and just like the bitcoin price, the stock fell until the end of the second quarter. Since the beginning of the year, the stock has lost 71% in value, but in the past 24 hours the stock has increased by 11%.
Concentrate on current bitcoin activities
The company announced last year that it entered into an exclusive deal with a developer of a power cable of at least two gigawatts of capacity and a separate exclusive agreement with a company that manages more than one gigawatt of power generation, both in Texas.
But for the time being, those collaborations will not be used. Greenidge plans to focus its operations at its current locations in New York and South Carolina for now.