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If you needed further proof that the emerging cryptocurrency revolution is impacting the markets, here it is. California-based firm Support.com (NASDAQ:SPRT) was known for years as a provider of customer and technical support solutions, but now a game-changing development with the company will likely have a major impact on SPRT stock.
Source: Shutterstock
Don’t get the wrong idea here. Currently, you can still go to the Support.com website and find a suite of proprietary, cloud-based customer-support solutions provided by home-based employees.
That’s a value-added business model in the era of the Covid-19 pandemic, when remote, tech-enhanced solutions are typically a priority for today’s businesses.
Yet, a recent merger indicates a shift in Support.com’s focus — and a Bitcoin (CCC:BTC-USD) connection that ought to pique the interest of cryptocurrency and blockchain enthusiasts.
SPRT Stock at a Glance
From 2015 through 2020, SPRT stock was classified as a penny stock — defined by the U.S. Securities and Exchange Commission (SEC) as a stock that trades under $5 per share.
Naturally, the bulls would want to get it above penny-stock territory. Unfortunately, for most of March 2021, the stock was barely above $2.
The situation changed drastically, though, on March 22. That’s when the SPRT stock price rocketed up to a 52-week high of $9.45. This was presumably precipitated by a significant event, which we will address very soon.
Now, I generally don’t recommend chasing after vertical stock-price moves. Here, we have a textbook example of this principle in action.
After topping out on March 22, SPRT stock started to retrace downward over the next few days. On April 6, the share price opened at $4.87.
Therefore, prospective investors may be able to take a long position in the stock at a discount to its short-term peak price.
Yet, the question remains: What event could possibly have caused such a massive surge of interest in Support.com?
Mining for Profits
So, did the financial markets suddenly see the immense value of Support.com’s world-class home-sourcing solutions?
Sorry to say it, but that’s not what catalyzed the spike in the SPRT stock price. That’s a shame, as Support.com deserved recognition for its years of leadership in the tech-enabled customer-support niche.
But the reality of the situation is that Bitcoin is a red-hot asset right now, and what boosted the interest in Support.com is a cryptocurrency connection.
In a real shocker of a news flash, on March 22, it was revealed that Bitcoin miner Greenidge Generation will be taking over Support.com. Don’t worry — Support.com will stick around as a subsidiary of Greenidge Generation.
This deal will actually go down in the crypto-market history books. That’s because the combined company will be the first publicly traded Bitcoin mining business to have complete ownership of its own power plant.
Clearly, if you’re going to invest in SPRT stock, you’ll definitely want to learn more about Greenidge Generation — so let’s dig deeper into that now.
More Power, Less Cost
Maybe you didn’t know about Greenidge Generation until now. However, this company is a real powerhouse in the Bitcoin mining business.
According to the press release associated with the merger, Greenidge Generation “owns and operates an integrated 106 MW gas-fired power plant and bitcoin mining operation in Upstate New York.”
Moreover, Greenidge is unusually self-sufficient in this space. Importantly, the company doesn’t rely on third-party contracts for power or operations and maintenance service.
Here are a few stats about Greenidge Generation for the crypto-mining aficionados out there:
- The company’s purchased miners are expected to grow in capacity to 41 megawatts by July 2021.
- That capacity should expand even further to 45 megawatts by the year’s end.
- The average mining power cost since June 2020 was around $22 per megawatt-hour.
- In February 2021, Greenidge Generation mined Bitcoin at an approximate net cost of -$371 per Bitcoin.
Yes, you read that last bullet point correctly: We’re talking about a negative cost to mine Bitcoin. When it comes to cost-efficient Bitcoin mining, you’d be hard-pressed to beat that.
The Takeaway
Support.com was actually a worthy company to invest in prior to the big merger announcement.
But now, it’s time to leave the past in the past and look forward to bigger and better things with Support.com.
And when it comes to power-packed, low-cost Bitcoin mining operations, Greenidge Generation (and therefore, Support.com) should impress any crypto enthusiast.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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