Greenidge Generation Holdings, the parent company of upstate New York-based BTC mining firm Greenidge, has announced plans to go public on the Nasdaq exchange via a merger.
The company recently announced that it has signed a definitive agreement to merge in a stock-for-stock deal with Nasdaq-listed customer and technical support provider Support.com (Nasdaq: SPRT). The transaction is still subject to the approval of the latter’s shareholder as well as other closing conditions.
Greenidge operates a digital currency mining farm in the United States, which is powered by their own natural gas-based power plant. BTC mining takes up 19 megawatts of the plant’s 106 megawatt capacity. Greenidge planned to more than double the allocation to 41 megawatts by the end of the second quarter of 2021, and then to 85 megawatts by the end of 2022.
Greenidge stated that it would be the only publicly traded company in the United States to operate a vertically integrated power generation facility and digital currency mining operation. It intends to replicate this business model at other power plants in order to reach a target of 500 megawatts of mining capacity by 2025.
The company expects to achieve a hashrate of 1.1 exahash per second (“EH/s”) by the end of Q2 2021, then scale to 2.6EH/s by the end of 2022. Greenidge also stated that it mined 1,186 BTC tokens over the last year at a cost of about $2,869 per BTC. It anticipates more than $50 million in EBITDA in 2021, increasing to $160 million in EBITDA by Q4 2022.
According to Greenidge CEO Jeff Kirt,
“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.”
Support.com’s president and CEO, Lance Rosenzweig, added,
“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.”
Support.com will become a wholly-owned subsidiary of Greenidge once the transaction is completed. Support.com’s current stockholders and option holders will own approximately 8% of Greenidge’s outstanding Class A common stock.
According to the merger agreement, Greenidge will pay Support.com shareholders approximately 5% of its common stock in exchange for the Support.com operations and other assets. It will pay an additional 3% of the estimated $33 million in cash on Support.com’s balance sheet at closing, which is expected to occur in the third quarter of this year. They anticipate that the combined company will have at least $70 million in net cash.