Welcome to our ninth episode of the IE Eye on Industry Podcast.
We’re going to take a look at one of the more fascinating Private Equity turnaround stories we have come across in recent memory.
This particular investment was made in 2014 by Atlas Holdings — when they purchased Greenidge Generation, a distressed 90-year-old coal-based power plant in Upstate New York. The investment thesis and the execution plan was set: get the facility re-permitted to supply power to the grid and convert the facility to cleaner burning natural gas.
Then, in 2017 when the converted facility was about to go online, New York State unexpectedly bailed out several nuclear-powered facilities, driving capacity prices to unanticipated lows.
The deterioration in capacity prices spawned a slew of alternative value creation strategies.
After several iterations, Greenidge is now running one of the most successful institutional bitcoin mining operations in the US.
But as we’ll soon learn, this story is not just about cryptocurrencies and bitcoin mining, but a case study on value creation and what to do when your business gets turned upside down.
We’ve invited Tim Rainey, CFO of Greenidge Generation LLC, to share this unique story with our community. Tim is a licensed CPA with over a decade of hands-on accounting experience across traditional finance, energy and cryptocurrencies.
At Greenidge, Tim oversees the world’s first fully compliant, hybrid power plant cryptocurrency mining operation. We’re excited to have Tim join us.