Another Bitcoin (BTC)-related stock might be available for investors on the Nasdaq exchange as the owner of the vertically integrated BTC mining and power generation facility in Upstate New York, Greenidge Generation Holdings (GGH), aims to go public.
GGH, the owner of Greenidge Generation, said it agreed to merge with Nasdaq-listed Support.com, a provider of customer and technical support solutions. The deal is still subject to Support.com shareholder approval and other customary closing conditions, GGH said in an emailed announcement, adding that they estimate to finalize the transaction in the third quarter of this year.
The pro forma combined company is currently expected to have combined net cash of at least USD 70m.
“Greenidge is expected to be the only US public company operating a vertically integrated power generation asset and Bitcoin mining operation and plans to replicate its vertically integrated mining model at other power sites and expects to achieve at least 500 MW of mining capacity by 2025,” the company added.
Its power plant in Upstate New York, for the 12 months ended on February 28, mined BTC 1,186 (USD 69m) at a net variable cost of approximately USD 2,869 per BTC, GGH said. At the time of writing (11:30 UTC), BTC trades at USD 57,969 and is up by 2% in a day.
The structure of the deal:
- Upon completion of the merger, stockholders and option holder of Support.com will collectively own approximately 8% of Greenidge’s outstanding Class A common stock.
- Approximately 5% of Greenidge common stock will be paid to Support.com shareholders in consideration for the Support.com operating and other assets, and approximately 3% will be paid in consideration for the estimated USD 33m of cash expected to be on Support.com’s balance sheet.
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