Vulcan closes $39.4 million PIPE, plans October debt redemption

Vulcan Infrastructure and Power Inc. (Nasdaq: VIP), formerly Greenidge Generation Holdings Inc., closed its previously announced approximately $39.4 million strategic private investment in public equity on September 10. The AI and high-performance computing infrastructure company intends to use net proceeds primarily to redeem its remaining approximately $33.1 million of 8.50% Senior Notes due October 2026.

Investors, shares, note, and warrant

Affiliates of Machine Investment Group and Atlas Holdings, Conversant Capital, and other investors including company insiders participated. Vulcan issued 17,146,190 Class A common shares at $1.71 each, a $10 million senior secured convertible note to the Machine affiliate, and a three-year warrant allowing that affiliate to buy 1,754,386 additional shares at $1.71 each. The closing follows subscription agreements dated July 19 and announced July 20.

Intended notes redemption path

The planned redemption would address the company's principal near-term debt maturity, according to Vulcan. The notes trade under GREEL, distinct from its VIP common shares. Vulcan said remaining proceeds would support general corporate purposes, including predevelopment work at its Dresden, New York, and Columbus, Mississippi, operations. The disclosure describes an intended use of proceeds, not a completed redemption.

Machine convertible note terms

The new Machine note carries 10% annual interest paid in kind through monthly capitalization and matures September 10, 2029. Its initial conversion price is $2.1375 per share, a 25% premium to the PIPE share price, subject to adjustment. Conversion requires the regulatory approvals specified in the subscription agreement. The note is secured by a first-priority lien on cryptocurrency mining equipment and related collateral, excluding mined cryptocurrency, together with pledge agreements described in the filing.

Equity dilution and new secured debt

The financing adds shares immediately, while the convertible note and warrant provide paths to further share issuance. The note also adds secured debt whose balance grows as interest is capitalized. The intended October redemption therefore sits alongside a new borrowing obligation with a later maturity.

AI and HPC infrastructure platform

Vulcan describes its business as acquiring, developing and operating energized sites for AI/HPC data centers. It operates a 104-megawatt power plant in Dresden and owns a 34-acre development site in Columbus, where it expects 40 megawatts to be available by the third quarter of 2027. Its stated 654-megawatt combined development pipeline across owned sites is a development measure, not disclosed signed customer capacity.

Board reconstituted at closing

The board was reconstituted to 10 directors in connection with the closing under the investor rights agreements.