The American company is setting important growth objectives for the years to come. The merger between Greenidge and Support.com could become effective by the second half of 2021.
American company Greenidge, which is dedicated to generating electricity and mining Bitcoin (BTC), will merge with Support.com (SPRT). They seek to list on Nasdaq and become the first company of this kind, with a power plant, on the stock market.
They could close the merger by the third quarter of 2021, according to news service Business Wire. While shareholders and option holders of Support.com would have 8% of the shares, those of Greenidge would have the remaining 92%. The transaction includes the payment of 5% of the Greenidge shares to Support.com investors to take control of the operational services and shares.
The management of Greenidge, belonging to Greenidge Generation Holdings Inc., shows an ambitious policy along with this announcement. They expect to exceed USD 50 million in EBITDA (earnings before interest, taxes, depreciation, and amortization) and triple it by late 2022.
Increase of Hash Rate for Bitcoin
The firm also plans to raise its hash rate for Bitcoin, from 1.1 EH/s to 2.6 EH/s, for next year. This value places it on a par with other mining companies in the region, such as Canada’s Bitfarms. At the moment, the Bitcoin network has a total hash rate above 160 EH/s.
Besides, Greenidge expects to increase its mining capacity, from 19 megawatts to 500 megawatts, by 2025. By replicating their mining farms at other power generating stations, they would be able to achieve this goal.
Producing Its Energy from Gas at a Low Cost
Given that Greenidge has its electricity supply; it is in a privileged position. It can produce energy from natural gas, which allows it to operate at low costs and avoid dependence on external suppliers. Greenidge is one of the lowest-cost natural gas companies in the United States at the current time.
Translating these figures into Bitcoin, the company has managed to mine 1,186 BTC at USD 2,869 per unit between February 2020 and February 2021. This number is very low compared to an average of USD 5,000 required for mining 1 BTC in mid-July 2020.
The Partnership with Support.com
The operators that Support.com hires are operators that work from home to provide customer service and technical support to companies and institutions.
They say that they will not change how they have been operating for more than 20 years. Support.com CEO Lance Rosenzweig will continue to be in charge of the services area. Meanwhile, Greenidge CEO Jeff Kirt will become the leader of the newly merged company.
Rosenzweig considers that this merger “will allow Greenidge to have more capital to finance its projects”. He says that their partnership will help them find new growth opportunities. Also, he believes that their shareholders can participate in what might become a competitive Bitcoin mining company.
This is not the first time that a Bitcoin-related company has sought to list on the stock market. In late January, cryptocurrency Coinbase confirmed that it would go public through a direct listing. In the case of Greenidge, they want to merge to optimize their operations.
By Alexander Salazar
