Greenidge Generation Holdings Enters Into Securities Purchase Agreement with Armistice Capital
Shares of Greenidge Generation Holdings (Ticker: GRN) rose 10% to $5.22 following an announcement today that the company has entered into a securities purchase agreement with Armistice Capital. The agreement includes an initial investment of $6 million, which will provide long-term capital to support Greenidge’s growth strategy.
With this strategic partnership, Greenidge plans to expand into low-cost power centers, bitcoin mining, new AI infrastructure/data centers, and efforts to support increased interest in bitcoin.
Under the terms of the agreement, Armistice Capital will initially invest $6 million to acquire a combination of 1.3 million shares and pre-funded warrants, priced at $4.76 per share. Additionally, Armistice Capital will receive warrants to purchase an additional 1.3 million shares for $6.62 million or $5.25 per share.
This investment comes at a time when Greenidge’s stock has experienced volatility in the market. While the stock reached its 52-week high of $9.26 on December 27, the company’s shares have seen a 21% decline in the past year.
Greenidge Generation Holdings is optimistic that the investment from Armistice Capital will not only provide the necessary capital to execute its growth strategy, but also propel the company’s expansion into promising sectors like bitcoin mining and AI infrastructure. With a focus on low-cost power centers, Greenidge is primed to tap into the increasing interest in bitcoin and cater to the evolving needs of the market.
Disclaimer: The content of this article is for informational purposes only and does not constitute financial advice or a recommendation to invest in Greenidge Generation Holdings. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
Analyst comment
Positive news: Greenidge Generation Holdings enters into securities purchase agreement with Armistice Capital, includes initial investment of $6 million to support Greenidge’s growth strategy. Stock rises 10% to $5.22.
As an analyst, I expect this investment to provide the necessary capital for Greenidge’s expansion into low-cost power centers, bitcoin mining, AI infrastructure/data centers, and efforts to support increased interest in bitcoin. This strategic partnership and focus on promising sectors should positively impact the market.
