Client Spotlight: Greenidge Generation
Greenidge Generation, LLC, is a long-standing client of The Bonadio Group. Greenidge, which began in 1937 as a coal-fired power plant, is now the world's first fully compliant cryptocurrency mining facility-power plant hybrid to take advantage of 'behind-the-meter' power generation. Greenidge employs a professional team of cryptocurrency mining and power plant management experts with decades of combined experience. This team has built a model that is unique in the industry and is succeeding in their mission: to be exceptional stewards in three areas – energy, environment, and economic growth.
So, what does a cryptocurrency mining facility, a coal-fired powerplant and an accounting firm have in common? Under normal circumstances, the answer is little to nothing. However, in this case, these three are connected in a success story of businesses making connections to pursue new endeavors.
Brett Schrader, a Partner in Bonadio’s Commercial Practice, manages the client relationship with Greenidge. As an expert in audit and review procedures and standards, Brett and his team have provided Greenidge with audit and advisory services since 2014.
But then, a few years ago, Greenidge realized that their unique capabilities and expertise opened up an exciting new business opportunity. The company decided to get into the cryptocurrency arena with the idea of leveraging their native energy source to mine Bitcoin (BTC). When Bonadio heard about these endeavors, they made the connection between Greenidge’s goals and the expertise and efforts of Armanino, a collaborative accounting firm with an industry-leading blockchain and cryptocurrency practice.
“After hearing about their goals and their endeavors, I knew Armanino would make a great partner for Greenidge,” said Brett. “Even though this wasn’t necessarily a project that Bonadio could lead, we knew we could help our client find the support and expertise to make their vision a reality.”
Bonadio connected the two, and Armanino was able to help Greenidge establish effective and compliant processes and controls to mitigate risk as they entered uncharted and unregulated territory. With this assistance, Greenidge has developed a “behind-the-meter cryptocurrency mining operation” that has allowed them to mine approximately 5.5 BTC every day.
“We’re seeing incredible profit, but even more notable than that is the way we were able to transform our business model using our existing resources,” said Tim Rainey, CFO of Greenidge Generation. “It goes without saying that none of this would have been possible without the connections and advisory services we received from The Bonadio Group. & More is engrained in the Bonadio culture, but it’s so much more than a tagline. In my experience, the firm truly goes above and beyond what’s expected, providing so much more than traditional tax and accounting services.”
Armanino now serves at Greenidge’s current independent auditors, exemplifying their ability to serve as consultants in one capacity and trusted auditors in another. The firm’s consulting work, which helped bring Greenidge’s cryptocurrency vision to scale, does not impair their ability to independently audit.
This material has been prepared for general, informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Should you require any such advice, please contact us directly. The information contained herein does not create, and your review or use of the information does not constitute, an accountant-client relationship.