Don’t Follow the Funny Money Into Greenridge Generation


It could be solving the climate crisis and shares would likely still be in a state of emergency. But it’s not. And when it comes to Greenidge Generation Holdings (NASDAQ:GREE), GREE stock is coming up short of showing bulls the kind of green associated with the color of money. Let me explain.

a crypto mining rig
Source: Mark Agnor /

Kicking off the week and Wall Street is committing itself to September’s historical tendency for weak price behavior with the broad-based S&P 500 off nearly 1.70%.

Blame the retreat and monthly losses of just over 4% on what you will. Two of the session’s favorites are U.S. debt ceiling jitters and mired-in-red Asian markets challenged by the China’s property market.

And to a small extent, the drag has no doubt adversely impacted GREE stock.

GREE Stock Is Facing Problems

But GREE has larger problems than losses totaling more than the stock’s 22% on Monday, which can’t be attributed to today’s more challenging market conditions.

Greenidge Generation or GREE as a few home-gamers or more aptly, meme-trading Reddit apes out there know, is the market’s current most-heavily shorted stock.

Short interest is approaching 70% and some of the highest since GameStop (NYSE:GME) reached its January peak amid a massive, short-covering rally.

And realize those determined shorts are in GREE are looking to profit from a collapse in shares.

Exceptions to the Rule

To be fair, meme-trading bulls have given GameStop or an AMC (NYSE:AMC) new leases on life as publicly traded companies.

Yet even in a year that’s seen apes become fixtures on Wall Street, GME stock and AMC remain the exception not the rule.

What the apes are mostly good at is short-lived monkey business, not helping companies succeed. Besides and importantly, Redditors have already had their fun.

Prior to this week when, pivoted 180 degrees to reinvent itself from an online software support shop into a Bitcoin (CCC:BTC-USD) miner with its Greenidge merger, apes enjoyed a fairly bananas rally at the bears expense. shares rocketed from about $9 to nearly $60 in just a handful of days in late August in anticipation of the deal.

Then in classic meme stock form and similar to the majority of the apes trading schemes, GREE stock quickly turned into a full-blown collapse in share price in just over two weeks.

So while the stock market may or may not always repeat or rhyme, given the history in SPRT stock investors have been clearly warned about GREE.

GREE Stock Weekly Price Chart

Greenidge Generation (GREE) intraday falling wedge pattern

Source: Charts by TradingView

If it wasn’t apparent, I’m not a fan of GREE and a bandwagon-riding looking to cash in on the crypto market. Further, staying out of GREE has nothing to do with a price chart that remains bearish.

As of Monday evening, GREE stock was in an extended 30-minute falling wedge. Not that the punishing price action is unique following Monday’s market sell-off.

Still, even if bargain-hunting in the broader market emerges, Bitcoin stages a rally or for that matter, the downtrend line in GREE is broken, I’d warn against buying shares. Sorry.

Some investors promoting a bullish outlook will point to Greenidge as the only American publicly listed Bitcoin mining operation with its own power operations. Great! Others or those same bulls might cheer that GREE’s crypto business also uses greener alternative energy sources too! Booyah!!

On the surface Greenidge is an appealing hook. But is Greenidge Generation saving the manatees? Not so much as InvestorPlace’s Will Ashworth elaborates.

Bottom Line

The company’s digital mining remains a very dirty and increasingly damaging business. Moreover, it could choke GREE’s bulls to near death.

Bottom line, in its former life as a publicly-traded company never turned the corner to produce any meaningful value for its investors, barring a few apes.

So, what’s really different today besides the ticker? Not much in my opinion. GREE is a bear in ape’s clothing.

With proven and less suspect companies getting hit this month and GREE stock also lacking options to hedge exposure – today and until something else gives, if ever – the color of money for investors lies elsewhere.

On the date of publication, Chris Tyler holds long positions(either directly or indirectly) in Grayscale Bitcoin Trust (GBTC) and Marathon Digital Holdings (MARA). The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Chris Tyler is a former floor-based, derivatives market maker on the American and Pacific exchanges. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits.

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