Greenidge will merge with Nasdaq-listed Support.com

Greenidge Generation, an 84-year old mothballed coal-fired power station located in the New York Finger Lake Region, pivoted to natural gas-based generation and crypto mining in the past few years after its purchase in 2014 by affiliates of Atlas Holdings LLC, the private equity fund. The power-cum-crypto company announced today a merger agreement with Support.com (NASDAQ: SPRT) that is expected to close in Q3 of 2021. (Cryptonews.com)

Greenidge’s fortunes turn

Greenidge is the world’s first fully compliant powerplant-cryptocurrency mining hybrid.

The new business direction has proved very lucrative for the company. For the 12 months ended on February 28, mined BTC 1,186 ($69 million) at a net variable cost of approximately $2,869 per BTC.

It expects to achieve a calendar year 2021 EBITDA in excess of $50 million and a run rate in excess of $160 million of EBITDA by Q4 2022.

Merger with Support.com

Once the merger is consummated, Greenidge will be the first publicly traded bitcoin mining company with a wholly-owned power plant.

Its environmentally-sound 106 MW natural gas plant currently powers 19 MW of mining capacity, which is expected to more than double to 41 MW by the end of Q2 2021 and reach 85 MW by the end of 2022.

Further, based on its current buildout and expansion expectations, it expects to have at least 500 MW of mining capacity by 2025.

Transaction details:

• Stock for stock transaction
• Support.com will become a wholly-owned subsidiary of Greenidge
• Upon completion of the merger, Support.com stockholders and option holders will collectively own approximately 8% of the combined company’s (Greenidge) common stock and Greenidge stockholders will own approximately 92%
• 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 $33 million of cash expected to be on Support.com’s balance sheet at closing using a formula set forth in the merger agreement
• Support.com stockholders would receive approximately 0.124 shares of Class A common stock of Greenidge for each share of Support.com
• Greenidge’s CEO Jeff Kirt will lead the combined company as CEO. Support.com’s CEO, Lance Rosenzweig, will remain in his position as CEO of the existing Support.com business, which will continue to operate in the ordinary course as a wholly-owned subsidiary of Greenidge.

“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,” said CEO Jeff Kirt.

“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, in other locations,” he added.

Related Story:     Greenidge Gen, Once A Coal Plant, Is Now A Profitable Crypto Miner