Greenidge Generation Holdings, which runs cryptocurrency data centers and power plants, has raised $6 million to help fund its growth plans.

The company will receive the cash injection from New York-based investment fund Armistice Capital.

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Greenidge Generation's New York power plant – Greenidge Generation

It will provide Greenidge with “long-term capital to support the company’s growth strategy” according to a statement from the two businesses, and is expected to fund its expansion into low-cost power centers and bitcoin mining, as well as a push to build new AI infrastructure and data centers.

Greenidge says it is also making “innovative efforts to support increased interest in bitcoin.”

Under the terms of the deal, Armistice Capital is initially investing $6 million to purchase a combination of 1,260,505 shares and pre-funded warrants priced at $4.76 per share. It is also receiving warrants to purchase an additional 1,260,505 shares for an aggregate price of $6.62 million, or $5.25 per share, in the future.

Greenidge CEO Jordan Kovler said the investment by Armistice “sends a clear message regarding Greenidge’s ongoing transformation and expansion efforts.”

He added: “This comes at an exciting time for us, as we continue to implement our growth plan, build upon our organization’s culture and cement our competitive advantages to garner further interest with institutional investors.

“The capital from Armistice will provide us more opportunities to execute on our initiatives and maximize value for all Greenidge shareholders.”

Greenidge runs a former coal-fired power station in Dresden, upstate New York, which it has converted into a natural gas-burning facility. Bitcoin mining is carried out at the New York site, and also at a 175-acre data center campus in South Carolina.

The Nasdaq-traded company’s most recent financial results, for the three months to the end of September 2023, show a quarterly income of $20.9 million, down five percent year-on-year.

Like many crypto-mining companies, it is pivoting to providing AI infrastructure, and in December launched a new service, GreenidgeAI, to cater for this market.