Greenidge Generation Holdings, a Bitcoin mining company, announced today that it is planning to go public through a merger with Support.com. Greenidge will become the first publicly traded Bitcoin mining company with a wholly-owned power plant.
According to the official press release, the merger is expected to close in Q3 of 2021. Greenidge and Support.com have signed a definitive agreement to merge in a stock-for-stock transaction. Upon completion of the proposed transaction, Support.com will become a wholly-owned subsidiary of Greenidge.
Greenidge mentioned that upon the completion of the merger, stock and option holders of support.com will collectively own around 8% of the combined company’s stock. Greenidge stockholders will own approximately 92%.
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Commenting on the latest announcement, Jeff Kirt, CEO of Greenidge, said: “This merger is an important next step for Greenidge as we build upon our existing integrated and proven platform for bitcoin mining and a generation of lower-carbon affordable power. The transaction is a validation of our transformational journey, our proprietary relationships and our industry expertise. It will allow for public market growth capital to propel Greenidge as we look to replicate the business model, which we have successfully executed in Upstate New York, and in other locations.”
Greenidge added that the company’s Upstate New York location provides access to some of the lowest-cost natural gas in North America. For the twelve months ended February 28, 2021, the company mined 1,186 Bitcoin at a net variable cost of approximately $2,869 per bitcoin.
The Bitcoin mining sector is growing at a rapid pace due to a surge in the BTC price. China remained the dominant force in crypto mining but other countries are slowly stepping up. The recent announcement shows that the North American Bitcoin mining companies are planning to expand their operations.
“As Greenidge looks to scale and seizes 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,” Lance Rosenzweig, President and CEO at Support.com said.