Support.com, Inc. (NASDAQ: SPRT) is rocketing in the market this morning, trading on gains that are better stated in multiples than percentages. While the company hasn’t released any press releases or filed anything with the SEC, there’s something big going on here today.
According to a press release from Greenidge Generation Holdings, there’s a merger on the horizon. Here’s what’s going on:
Support.com to Merge With Greenidge Generation Holdings
As mentioned above, a press release from Greenidge Generation Holdings suggests that a merger is on the horizon. The company owns a vertically integrated Bitcoin mining and power generation facility and said that it plans on becoming Nasdaq listed through a merger with Support.com.
According to the release, Support.com will become a wholly-owned subsidiary of Greenidge.
Once the transaction is complete, Greenidge is expected to be the only publicly traded company in the United States operating a vertically integrated power generation asset and bitcoin mining operation. Moreover, the company plans on replicating its mining model at other power sites and expects to increase capacity substantially between now and 2025.
Once the merger is complete, shareholders of Support.com will collectively own about 8% of the company.
In a statement, Jeff Kirt, CEO at Greenidge, had the following to offer:
This merger is an important next step for Greenidge as we build upon our existing, integrated and proven platform for bitcoin mining and generation of lower carbon affordable power. The transaction is a validation of our transformational journey, our proprietary relationships and our industry expertise. It will allow for public market growth capital to propel Greenidge as we look to replicate the business model, which we have successfully executed in Upstate New York, in other locations. With our proven track record and investment both from funds sponsored and managed by Atlas Holdings LLC and major institutional investors, Greenidge is uniquely positioned to capitalize on future growth opportunities.
The above statement was followed up by Lance Rosenzweig, CEO and President at Support.com. Here’s what he had to offer:
We are extremely pleased to have reached this agreement to merge with Greenidge. This transaction will build upon Greenidge’s successful business by providing them with additional cash funding and a public currency to fund their growth plans, as well as important new capabilities including customer interface, security software, and privacy expertise. As Greenidge looks to scale and seize new opportunities for growth, we are their ideal partner. In addition, the transaction 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.
These Gains Could Go Far Higher
The gains that we’re seeing at the moment may just be the tip of the iceberg. First and foremost, Support.com stock trades with a short interest of more than 16%, which is pretty heavy, suggesting that a short squeeze is in play here.
Moreover, the public float on the stock is about 16 million shares, meaning that supplies of shares are short and suggesting that more dramatic gains are ahead as demand picks up.
Not to mention, Bitcoin is an incredibly hot topic, and with the merger, Support.com is becoming a Bitcoin play, setting the stage for even more demand for the stock. All told, the gains could be the tip of the iceberg.
All told, Support.com is an interesting stock to watch at the moment. With a merger on the horizon, investors are excited about the future, sending the stock on a tremendous run for the top. As such, SPRT stock is one to watch.