Mining for both Bitcoin and crypto, in general, is becoming more and more challenging not to mention less profitable. Despite these hard times, a controversial bitcoin miner is about to raise $22.8M. Greenidge, through his mining company, is filled with controversies and is looking to raise even more funds.
Given the past experience, it is likely Greenidge will raise the amount despite becoming less popular over the last few months. For just the second quarter, his company announced a 107.9m net loss. This only added to the challenges he is having as a miner.
Due to the amount of energy consumed while mining, environmentalist have criticized his company and other mining activities out there. The reason being there is barely enough clean energy in the world for dairy use leave alone such highly consuming energy activities.
Raising such huge amounts of money requires approval by SEC. According to the filings by Greenidge Generation Holdings Inc. with SEC, the money raised will be used for:
“paying or refinancing all or a portion of our indebtedness at the time, and funding acquisitions, capital expenditures, and working capital.”
How Greenidge Will Raise the money
B. Riley Securities, one of the major investment banks to have adopted crypto will be the custodians of the funds. As payment, Greenidge Generation Holdings Inc. has agreed to part with 5% of the money raised as commission. This is just one instance B. Riley Securities have been invested in when it comes to crypto. Earlier the bank purchased equity at Iris Energy, another bitcoin miner, worth $100m
As for Bitcoin’s value, it is still stagnated at 20k despite such moves by major corporations to invest in it. Regulations are becoming more in the US on crypto. At the moment the United States is the leading miner in crypto after taking over from china in 2021.
