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Stocks of tech firm Support.com, Inc. (SPRT:US or NASDAQ: SPRT) skyrocketed over 281 per cent pre-market on Monday, March 22. This surge came on the back of its merger with New York-based bitcoin miner firm Greenidge Generation Holdings.
Both parties will merge via a stock-for-stock agreement, which is subject to Support.com stockholders’ endorsement and other exchange securities obligations. Once the definitive deal transaction is completed, Support will become Greenridge’s subsidiary. The joint enterprise will be listed on the NASDAQ exchange.
Greenidge had 1,186 bitcoins in its inventory at a net variable price of nearly US$ 2,869 per bitcoin as of February 28, 2021. On the back of this merger, Greenidge expects to become the first US-listed crypto company that has integrated bitcoin mining and power operations.
Let us a glance at the cloud-based software stock’s performance:
Support.com, Inc. (SPRT:US or NASDAQ: SPRT)
The tech firm offers support services programs to both consumer and small and medium enterprises, including mobile device and computer and set-up, security, and automation system support.
It has returned almost 114 per cent in the past one year, outperforming the S&P 500 Application Software Sub Industry that has increased by approximately 40 per cent in the same period.
However, the tech stock has dropped by 2.72 per cent this year.
Nearly 77.05 million shares exchanged hands as of the opening bell on Monday, March 22. The stock has touched a new 52-week high of U$ 8.44 per common share, with a soaring market cap of US$ 155 million.
Image Source: Kalkine Group @2020
From the merged entity, Greenidge anticipates adding earnings before interest, taxes, depreciation, and amortization (EBITDA) of US $50 million for the calendar year 2021. It also expects to generate an extra US$ 160 million of EBITDA by the last quarter of 2022.
For the third quarter of 2020, the company posted total revenue of US$ 10.3 million, down 32 per cent against US$ 15.2 million in Q3 2019. It garnered a gross profit of US$ 3.1 million in Q3 2020, which declined from US$ 4.6 million in Q3 2019.