Greenidge Sells Mississippi Mining Facility Amid Financial Struggles

Greenidge Generation has sold its Bitcoin mining centre in Mississippi for $3.9 million, merely a year after its launch. This was disclosed in a filing with the SEC. 

The buyer is U.S. Digital Mining Mississippi, an entity linked to the publicly traded mining firm LM Funding America. 

The deal excludes the equipment and warehouse located at the site, which may be sold separately. The transaction is expected to close by 16 September. 

Greenidge inaugurated the mining centre with 2,400 ASIC devices in Mississippi in July 2024. The company had access to 8.5 MW of power and planned to add 25 MW within the year, as noted in The Miner Mag. However, the facility became unprofitable.

In 2021, the miner faced financial difficulties, as the firm was aggressively expanding through loans. The acquisition of equipment increased its debt burden. 

Following the 2024 halving, revenues fell even further. Hashprice remains at historical highs, despite Bitcoin’s price exceeding $116,000. 

New tariffs introduced by the Trump administration on 7 August exacerbated the situation. Previously, Luxor Technology’s COO Ethan Vera stated that the U.S. has become one of the least attractive countries for importing Bitcoin mining equipment. According to him, the increase in duties will slow down the crypto mining industry in the States. 

Oil and Gas Firms Turn to Bitcoin Mining

Amid difficulties in the U.S., British oil and gas company Union Jack Oil announced plans to mine cryptocurrency at a gas field in East Yorkshire. The firm has entered into a preliminary agreement with Texas-based 60 Energy.

The gas is intended to be used on-site to generate electricity, which will power the mining equipment. The field’s reserves are estimated at approximately 200 billion cubic feet.

Representatives of Union Jack Oil believe the initiative could yield high returns from gas that would otherwise remain unused. If successful, the company may establish a Bitcoin reserve. 

Back in July, the world’s largest Bitcoin mining equipment manufacturer, Bitmain, announced the opening of its first factory in the U.S. Similarly, miner Canaan has taken the same step.