Greenridge Generation to go public through merger with Support.com

Greenridge Generation to go public through merger with Support.com

Greenidge Generation Holdings Inc., a holding firm that comprises Greenidge Generation LLC- an integrated power generation and bitcoin mining unit, has announced that it plans to merge with Support.com to become a NASDAQ listed entity.

For the record, both the companies have inked a definitive agreement to unite in a stock-for-stock transaction, subject to approval from the stakeholders of Support.com and other customary closing regulations.

Notably, after the completion of the transaction, Support.com will become a wholly-owned subsidiary of the American firm. The 106 MW sustainable, natural gas facility of Greenidge currently powers nearly 19 MW of mining capacity, which is projected to grow multiple folds to 41 MW by the end of Q2 2021 and reach 85 MW by 2022 through the deal.

Regarded as the only U.S.-based public firm operating a vertically integrated power asset, the company plans to recreate its vertically integrated mining models at various other power sites and aims at achieving nearly 500 MW of mining capacity through 2025.  

It is worth mention that Greenidge’s novel business model offers considerable competitive advantages when compared to its bitcoin mining peers. The company has its power generation assets and operates its mining equipment, unlike other bitcoin mining companies. This solution allows the company to function without depending on third-party power purchase and hosting agreements that are subject to cost volatility.

In addition to the above, the firm has low fixed costs that are shared between its bitcoin mining and power generation operations. Additionally, its New York location offers access to some of the lowest-cost natural gas across North America, leading to an average mining power cost of nearly USD 22 per MWh3.

Post the completion of the merger, the option holders and stakeholders of Support.com will collectively own nearly 8% of Greenidge’s outstanding Class A common stock. The firm will benefit from the additional cash on the balance sheet of Support.com at the closing which is approximately USD 33 million.

Source Credit: https://www.businesswire.com/news/home/20210322005353/en/Bitcoin-Miner-Greenidge-Generation-Holdings-Inc.-and-Support.com-Inc.-Nasdaq-SPRT-Announce-Merger-Agreement