The support.com stock had plunged 1.38% in the market when it closed at $2.14. However, the pre-market price of the stock is a completely different story as it soared by more than 200%.
The reason that could most definitely be behind this soar is the announcement of merger between Greenidge Generation Holdings and Sport.com.
Glimpse of the two merging companies
Support.com Inc. is an information technology support company that provides its services to private individual clients as well as businesses. The company is headquartered in Delaware and particularly provides services for the software platform of Android, macOS, iOS, and Windows supporting gadgets.
Greenidge Generation Holdings Inc. is a holding company that includes Greenidge Generation LLC which is the holding company’s subsidiary. This subsidiary specifically focuses on an integrated bitcoin mining operations. It also has a power generating facility present in Upstate New York. The Holding company also has a 106MW natural gas plant, allowing it to continue its subsidiary operations at low power costs due to owning and access to a vast natural gas reserve in North America.
Why this merger is significant
The Greenidge Generations Holdings Inc. has announced that it will be a part of the NASDAQ listed companies thanks to merger with the IT Company. This merger is done specifically through definitive agreement of a stock-for-stock transaction where both parties have given approvals.
The merger upon its completion will make Support.com a part of the subsidiary family of Greenidge Generations Holdings Inc. Greenidge’s decision to acquire Support.com seems to be motivated by the fact that it wants to expand the IT-base tech assistance to accelerate its mining capacity. Greenidge will become the only U.S. public company operating a vertically integrated mining operation and power generation system.
Support.com will reinforce the operational stability of Greenidge
This is what makes Greenidge unqiue, because it has the combination of owning a power generation system to provide power to its own mining equipment’s operations. This is something that other mining companies have to rely on third-parties for. The company’s operational fundamentals are steady due to low fixed costs for both mining operations and as well power generational functions.
According to the financial adjustments relating to this merger, Support.com will provide an additional cash balance to Greenidge. The merger is expected to be closed at $33 million. The merger will be closed in the third quarter of this year and will have combined net cash of at least $70 million dollar.
Furthermore, 210 Capital LLC has decided to acquire approximately 3.9 million shares of Support.com under the condition that this merger carries out. This has now updated the current outstanding stock of Support.com to approximately 23.6 million shares.
