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RELATED PARTY TRANSACTIONS
12 Months Ended
Dec. 31, 2022
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS RELATED PARTY TRANSACTIONS
As of December 31, 2022, Atlas and its affiliates control 88.5% of the voting power of our outstanding capital stock. As a result, we are a "controlled company" within the meaning of Nasdaq’s corporate governance standards.
Letters of Credit
On March 19, 2021, the Company and Atlas and its affiliates, entered into an arrangement pursuant to which Greenidge agreed, upon request, to direct its bank to issue new letters of credit to replace all or a portion of the letters of credit provided by Atlas and certain of its affiliates, upon the consummation of a potential investment in, financing of, or sale of any assets or equity or debt securities of the Company, which results in net proceeds to the Company of at least $10 million.
Atlas obtained a letter of credit from a financial institution in the amount of $5.0 million at December 31, 2022, payable to the NYSDEC. This letter of credit guarantees the current value of the Company’s landfill environmental trust liability under NYSDEC guidelines.
Atlas also obtained a letter of credit from a financial institution in the amount of $3.6 million at December 31, 2022, payable to Empire Pipeline Incorporated ("Empire") in the event the Company should not make contracted payments for costs related to a pipeline interconnection project the Company has entered into with Empire.
The Company paid $0.1 million for letter of credit fees to Atlas during the year ended December 31, 2021. For the year ended December 31, 2022, the Company paid these fees directly to the NYSDEC.
Guarantee
An affiliate of Atlas has guaranteed the payment obligation of Greenidge in favor of Emera Energy Services, Inc. ("Emera") under an Energy Management Agreement and an ISDA Master Agreement under which Greenidge may enter into various transactions involving the purchase and sale of natural gas, electricity and other commodities with Emera. This guaranty is limited to $1.0 million. Atlas had no exposure under the guarantee during the years ended December 31, 2022 and 2021.
Other
Affiliates of Atlas from time to time incur certain costs for the benefit of Greenidge, which are fully reimbursed by Greenidge. The amount of costs reimbursed by Greenidge during 2022 and 2021 was $0.2 million and less than $0.1 million, respectively.
Spartanburg Facility
In December 2021, the Company acquired an industrial site in Spartanburg, South Carolina, including a 750,000 square foot building and 175 acres of land (the "Property"). This agreement was entered into by one of the Company's subsidiaries and a portfolio company of private investment funds managed by Atlas. The Company has developed datacenter operations on the property, using existing electrical infrastructure at the location. . The purchase price of the Property is $15.0 million. The transaction closed in December 2021.