What Happened to Support.com (SPRT) Stock? Greenidge Merger Details
Support.com announced its merger with Bitcoin miner Greenidge Generation Holdings in March. The merger will enable GREE trading this week.
Support.com, which has been publicly traded on the Nasdaq as "SPRT," is undergoing some changes in the public market. The company provides customer and technical support solutions delivered by home-based employees.
Those who currently own shares of SPRT stock might wonder what’s happening to their shares in the company. The merger of Support.com with Greenidge Generation Holdings Inc., which was announced in March, is expected to close and become effective at the end of trading on Sept. 14.
What to know about the SPRT merger news
Meanwhile, Support.com provides omnichannel solutions for the homesourcingSM environment. Its offerings include advanced tech support, omnichannel customer support, and security software.
The company says that by working entirely on a cloud-based infrastructure without brick-and-mortar operations or commutes, it's “better for clients, better for employees, and better for the planet.”
Support.com is merging with a vertically integrated Bitcoin mining and power generation company, Greenidge Generation Holdings Inc. Investors won't be able to access SPRT stock because current shareholders’ shares will convert to the new “GREE” stock symbol at the ratio agreed upon in the merger.
Assuming that all of the closing conditions of the merger agreement are either met or waived, shares of the newly merged company will be available at the start of trading on Sept. 15. The stock will list on the Nasdaq Global Select Market and trade under "GREE."
Near the end of August, SPRT stock prices increased by over 400 percent in just a week, which prompted talk of the company becoming a “meme stock.” It remains to be seen how the merger with Greenidge will impact share prices.
The final approved exchange ratio of shares for the Support.com and Greenidge merger was announced this week. Common stock shares of Support.com will be canceled and automatically converted, providing the right to receive 0.115 shares of the new Greenidge Class A common stock, according to Yahoo Finance.
The merger agreement also provides for cash instead of any fractional shares of GREE shares that result from the conversion calculations.
GREE stock price
Currently, Greenidge Generation Holdings operates one facility in New York. A second location is planned for South Carolina in the coming months. It offers Bitcoin mining, which is the process of verifying Bitcoin transactions and adding them to the permanent blockchain. This helps make the blockchain secure and decentralized.
Greenidge aims to provide 100 percent carbon neutral Bitcoin mining, largely through investments in carbon offset programs.
In an earlier press release regarding the merger, it was stated that Greenidge stockholders would hold about 92 percent of the new company and Support.com shareholders would collectively hold the remaining 8 percent.
Support.com was expected to offer $33 million in additional cash to Greenidge through the merger, according to BusinessWire.
The price for GREE shares isn’t yet known, but earlier in the year Greenidge projected calendar year 2021 EBITDA in excess of $50 million. By the fourth quarter of 2022, it expected a run rate of over $160 million EBITDA