What's Going On With Bitcoin-Related Stock Greenidge Generation?

Greenidge Generation Holdings Inc GREE shares are trading flat at $3.25 Wednesday ahead of the company's fourth-quarter earnings report, confirmed for Wednesday's after-hours session.

According to analyst consensus estimates, Greenidge Generation is expected to report EPS of 20 cents on revenue of $26.7 million.

What Else?

Mining Bitcoin is an energy-intensive process that requires substantial infrastructure and operational expenses. Greenidge Generation incurs costs associated with electricity, equipment maintenance and operational overheads. Despite recent higher Bitcoin prices, operational costs may have risen in tandem, thereby limiting the extent to which increased revenues translate into improved profitability.

Additionally, the Bitcoin mining industry is highly competitive, with numerous players vying for market share. Increased competition can exert downward pressure on profit margins, particularly if other miners ramp up their operations in response to higher Bitcoin prices. Greenidge Generation may be facing intensified competition, leading investors to adopt a cautious stance despite favorable market conditions.

See Also: GameStop Stock Is Tumbling Wednesday: What’s Going On?

How To Buy GREE Stock

By now you're likely curious about how to participate in the market for Greenidge Generation – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

In the the case of Greenidge Generation, which is trading at $3.34 as of publishing time, $100 would buy you 29.94 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, GREE has a 52-week high of $9.26 and a 52-week low of $1.55.