IPO: This bitcoin mining company wants to go public

IPO: This Bitcoin mining company wants to go public

Bitcoin mining is more than profitable. A new report now shows that digital miners have also secured a nice „passive income“ on the stock market. Mining company Greenidge now wants to jump on the bandwagon and is aiming for an IPO.

Vice president of digital assets at analytics firm Fundstrat Leeor Shimron notes in a report that shares of Bitcoin miners have outpaced the digital Bitcoin Code store of value’s price rally. While the BTC price has grown by 900 per cent, miner stocks have risen by an average of 5,000 per cent, he says. And indeed, if you look at the RIOT Blockchain share, for example, you will see that the trading stock is currently even more than 2,000 percent above the average.

According to the analyst, there is a „high correlation“ between the rapid rise in the miner’s share price and the BTC price. Shimron concludes that for every one per cent that BTC gains, miner shares increase by 2.5 on average. However, if the BTC price goes into a downward spiral, the company shares would have to suffer from greater volatility.

Bitcoin miner wants to go public

These market developments have made the mining company Greenidge want to be listed on NASDAQ. To this end, the digital miner from the US city of Dresden in New York State is merging with Support.com, a technical support company listed on the US stock exchange NASDAQ. This is stated in a press release. The merger is a so-called „stock for stock merger“. In this process, shares in one company are exchanged for shares in another company. Shareholders can then exchange their existing shares for the newly issued securities.

In Greenidge’s case, Support.com becomes a subsidiary but remains listed on NASDAQ. The Bitcoin miner, meanwhile, is itself aiming for an IPO on the largest electronic exchange in the US. However, the company did not give an exact date. Commenting on the merger, Greenidge said:

‚This merger is an important next step for Greenidge as we build on our existing, integrated and proven platform for bitcoin mining and low-carbon, affordable energy generation.
Greenidge Generation Holdings Inc, 22 March 2021

Currently, the bitcoin miner says it has 19 megawatts of mining capacity. By the end of the second quarter of 2021, it expects to increase to 41 megawatts. By the end of 2022, the capacity should more than double to 85 megawatts. If these targets are met, one should observe an enormous impact on the share price of the mining company, if it is then listed on the NASDAQ. However, the news of the merger with Greenidge definitely had an effect on Support.com’s common stock. After the announcement, the company’s share price shot up from 2.14 USD to 9.15 USD. Currently, the stock is at USD 7.10.