Cryptocurrency mining company announces $264M investment, 40 jobs in Spartanburg County

A New York cryptocurrency mining company announced plans Tuesday to invest $264 million, create 40 tech-sector jobs and develop a new crypto data center in Spartanburg County.

Greenidge Generation Holdings of Dresden, New York, has purchased the former 175-acre LSC Communications printing plant site at 300 Jones Road with plans to be operational by the second half of this year, with expansions through 2025, according to a statement from Gov., Henry McMaster.

The Herald-Journal in October previously reported Greenidge's plans to open its second location at the LSC site, formerly known as the R.R. Donnelly plant. At the time, Greenidge officials did not say how much it planned to invest or how many jobs it would create.

"South Carolina is transforming into a hub for tech-focused companies, and we welcome Greenidge Generation to our growing roster of innovative companies," McMaster stated. "The company's $264 million investment and the 40 skilled jobs they are creating will make a tremendous impact in Spartanburg County and beyond."

Greenidge CEO Jeff Kirt stated, "We are extremely excited to announce our commitment to expand our business to Spartanburg, and we're grateful for the welcome and support we have received from the state and our local community.

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"This is a significant step in Greenidge's strategy to build upon our unique expertise at new locations across the country. This site is ideal, with an energy mix that is more than 60% carbon-free, opportunities for additional growth and a business-friendly climate."

Cryptocurrency mining in Spartanburg

Greenidge is one of three cryptocurrency mining companies to recently announce plans to operate in the Upstate.

Litchain Corp. announced it is investing $80 million and leasing a portion of the Gaffney Public Works warehouse property on S.C. Highway 105 for its operation. Last month, former GOP gubernatorial candidate John Warren announced the startup of a Bitcoin mining operation in Greenville called GEM Mining.

"This kind of technology-fueled investment fits perfectly with our aim to diversify the types of developments, and therefore the types of jobs, we attract to Spartanburg County," Spartanburg County Council Chairman Manning Lynch stated. "We welcome Greenidge Generation and look forward to the impact they'll have on the growing eastern side of Spartanburg County."

On Monday night, County Council agreed to provide tax breaks to Greenidge, one of four new economic development projects totaling nearly $320 million in investment and seeking a 6% property tax rate, lower than the standard rate of 10.5%.

Councilman David Britt, who chairs the county's economic development committee, said the new year is picking up right where last year left off with new companies coming to Spartanburg or existing ones expanding.

In addition to Greenidge, the three other projects are code-named Gray, $18.5 million planned investment, no jobs; Three Twos, $23.3 million, no jobs; and Black Arrow, $15.15 million.

"I believe 2022 will surpass this past year's success, which was an incredible accomplishment for Spartanburg," said Britt, who chairs the economic development committee. "To say I am bullish on 2022 would be an understatement. Put on your dancing shoes and January results start the year on the right foot."

Project Frontier tax breaks

Also Monday, council moved forward with tax breaks for Project Frontier, which was identified as Abner Creek Industrial at 891 Deyoung Road, $17 million investment; and Project Robinson, identified as Pinchal & Company, Robinson Road, $6 million investment projected.

Last month, council approved tax breaks for electric bus manufacturer and EV tech provider Proterra Operating Company, which is a $76 million investment with 217 new jobs at Carolina Commerce Center in Greer.

Related: Spartanburg County Council backs Proterra EV battery manufacturing plans, 217 new jobs

The company plans to launch an EV battery system production operation at a 327,000-square-foot plant by the second half of this year.

Proterra was among a dozen new and previously announced projects seeking tax breaks that County Council agreed to at its December meeting.

Combined, the 12 projects total $404 million investment and 600 new jobs.

For all of 2021, 44 projects were approved totaling $1.9 billion in investment and 4,045 new jobs, according to Britt.

Britt said last year's totals set a record for economic growth in the county, which he said "demonstrates how our partnerships have paved the way for not only Spartanburg but the great state of South Carolina, as evidenced in McMaster's State of the State address last week.

He credited OneSpartanburg, Inc. Chief Economic Development Officer Katherine O'Neill, County Administrator Cole Alverson, OneSpartanburg President and CEO Allen Smith, and Lynch.

"This is not by chance but by teamwork and the belief that jobs equal hope and opportunity for all of our residents in Spartanburg," Britt said.

BMW Manufacturing plant sets record

Meanwhile, the company that is credited with starting Spartanburg County's economic success after textile mills closed is continuing to show returns.

BMW Manufacturing's Plant Spartanburg set a new production record last year, producing 433,810 BMW X vehicles, a 20 percent increase over 2020's production and breaks the previous record of 411,620 vehicles set in 2019.

The plant also produced a record number of plug-in hybrid vehicles last year with about 70,000 vehicles shipped.

Since BMW announced in 1992 that it would build its first manufacturing facility outside of Germany and in South Carolina, it has invested about $11.9 billion in its Spartanburg plant – the largest BMW Group plant in the world, producing more than 1,500 vehicles a day with more than 11,000 employees. The plant opened in 1994.

BMW was among the first companies to receive tax breaks for locating in Spartanburg, according to Britt.

Contact Bob Montgomery at bob.montgomery@shj.com

This article originally appeared on Herald-Journal: Crypto mining company plans $264M investment, 40 jobs in Spartanburg