Greenidge Generation Holdings, the parent company of upstate New York-based bitcoin mining firm Greenidge, expects to go public in the U.S. through a merger deal.
The bitcoin mining firm announced the merger plan on Monday, saying it has signed a definitive agreement to merge in a stock-for-stock transaction with Nasdaq-listed customer service solution provider Support.com, subject to the latter's shareholder approval and other closing conditions.
Greenidge operates self-mining farms in the U.S powered by its proprietary nature gas-based power plants that currently have allocated 19 megawatt out of its 106 megawatt capacity for bitcoin mining.
The firm said has mined 1,186 BTC for 12 months as of February 28 at a cost of about $2,869 per bitcoin. It projects more $50 million in earning before interest, taxes, depreciation and amortization for 2021.
As part of the deal, Support.com, with a $41 million in market capitalization on Nasdaq, will become a wholly-owned subsidiary of Greenidge upon closing of the proposed transaction, which is expected to conclude in Q3 this year.
"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 Greenidge’s CEO Jeff Kirt.
"This transaction will build upon Greenidge’s successful business by providing them with additional cash funding and a public currency to fund their growth plans, as well as important new capabilities including customer interface, security software, and privacy expertise," Support.com's president and CEO Lance Rosenzweig added in the statement.
As part of the merger plan, Support.com is set to provide Greenidge with an estimated $33 million in cash.
Greenidge said it aims to scale up its bitcoin mining capacity to 41 megawatt by the end of June, which would have an estimated computing power of 1.1 exhashes per second (EH/s).
CORRECTION: This article has been corrected to reflect that the 1.1 EH/s is Greenidge's projection for the end of Q2. The previous version stated it was its current computing power.