New York-based bitcoin mining firm Greenidge Generation Holdings noted in an announcement today that it will soon become a publicly-traded company via a merger with Nasdaq-listed Support.com.
According to a press release, the partnership would see Support.com provide a total of $33 million to the mining company, thus giving its investors the option to own about 8% of Greenidge’s outstanding class A common stocks.
The deal, which is expected to close by the end of Q3 2021, will also require Support.com to have at least $28 million on its balance sheet while both firms are expected to have a minimum of $70 million, the announcement added.
Lance Rosenzweig, chief executive of Support.com said:
“[The deal] represents a significant value proposition for our shareholders by providing them with enhanced liquidity and the opportunity to participate in the growth of what we believe will be a successful competitor in the rapidly evolving domestic bitcoin mining space.”
Greenidge currently owns a 106 megawatts natural gas plant, which powers a 19 MW bitcoin mining facility in Upstate New York.
The mining firm is hoping to more than double its mining capacity to about 41 MW by the end of Q2 2021, and subsequently enhance the facility’s performance to reach 85 MW by 2022.
The firm mined a total of 1,186 BTC at a net variable cost of $2,869 per bitcoin between March 2020 and February 2021.
Support.com’s Stocks Spikes Over 270%
While the deal is yet to be finalized, the news of Support.com affiliating with a crypto-related firm seemed to be a good one for its investors, as the firm’s stock spiked by more than 270% minutes after the announcement was made.
At the close of the stock market last week, Support.com share traded at $2.14, but news of the merger shot its price to as high as $9.15 today. However, the price had dropped to $7.14, a few minutes before press time.
Traditional Investors Eager For Cryptos
The massive surge in Support.com’s stock value indicates that more traditional investors are eager to get involved with cryptocurrencies, but are scared of gaining direct exposure.
The crypto market has been bullish since the beginning of the year, with several cryptocurrencies, including Bitcoin (BTC) giving investors massive returns, which is way higher compared to other traditional investments.
These massive gains have continued to lure traditional investors into the crypto market, as seen with groundbreaking investments recorded from the institutional class.
Many bitcoin proponents are so convinced in the digital asset’s potential for growth that they think any price, no matter how ridiculously high it is, is fair for a unit of the coin.
