Here’s Why Sysorex (SYSX) Stock Soared Over 600%

2 min read | April 15, 2021 11:08 PM AEST | By Team Kalkine Media

Here’s Why Sysorex (SYSX) Stock Soared Over 600%

What Is The Reverse Triangular Merger?

Syrorex has closed the reverse triangular merger with TTM Digital Assets & Technologies, an Ethereum mining and blockchain company. After the merger, TTM will become the core business of Sysorex, boosting its prospects as the largest US publicly traded Ethereum mining company.

Apart from running TTM, the company will continue to run and probably expand its traditional business of providing information technology services like embedded security, networking and selling cybersecurity products to the US government.

Why Is The Merger Important?

Leading assets like Bitcoin (BTC) and Ethereum (ETH) are gaining traction and TTM is a successful company in the Ethereum mining sector and has been profitable since its inception in 2017.

It owns and operates more than 12,000 graphics processing units (GPUs) of popular tech company NVIDIA which also include the cryptocurrency mining processors that secure Ethereum blockchain and generate ETH.

After the closure, the TTM shareholders exchanged 100 per cent of their share capital for Syrsorex after it agreed to issue 124.2 million shares from its common stock to TTM shareholders. They will now represent 80 per cent of Sysorex's total share capital.

Source: Pixabay

A Look At Sysorex Financials

In 2020, the company's net revenues were US$ 11.5 million, an increase of about 119 per cent year-over-year. In its financial report, Sysorex stated that the increase in revenues was due to the increased orders from existing contracts and it was looking to accept more orders.

Due to the advantage on settlement of liabilities, the gross profit margin increased to 26 per cent, up from 21 per cent in 2019.

The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.

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