Known for its efficient delivery of security software solutions as well as customer and technical support, Support.com (NASDAQ: SPRT) has distinguished itself with a network of home-based employees stationed throughout the world. With over 20 years of experience, Support.com has a highly adaptable model – freed by its secure cloud-based infrastructure – that has successfully developed to meet changing market needs. Now, it is expanding in an exciting direction that has investors eager to get in on SPRT stock before a short squeeze drives PPS well beyond its current price of $12.47.
SPRT Stock Catalysts
Launching its Homesourcing℠ Cloud, SPRT is targeting large enterprises and professional service firms with its proprietary cloud-based platform designed for a globally distributed workforce. Each component of the suite resolves specific issues that hinder remote work such as: real-time video and image sharing between customers and agents, HIPAA and PCI-compliant security enforcement, and data sharing for customer relationship management.
Seizing the crypto tide, SPRT is also offering its Crypto ConciergeSM service for on-demand support to the burgeoning wave of crypto-oriented industry leaders. Support.com’s unique ability to solve customer and technical support issues while providing educational resources on cryptocurrency and financial services can benefit exchanges, wallet OEMs, cryptocurrency and NFT platforms, as well as other fintech innovators. With a growing customer base of eager users struggling with the intricacies of crypto investing, these entities could benefit from Support.com’s ability to reduce response times and overloaded customer support networks thanks to its institutional knowledge.
SPRT is no stranger to Crypto. Its confirmed merger with Greenidge – a bitcoin miner that operates its own green power plant in Upstate New York – means the company will soon be mining crypto in a very profitable and environmentally friendly way. It will be the only vertically integrated and publicly listed bitcoin mining operation in the US with $52 million EBITDA expected in 2021 and an expected runrate EBITDA of $162 million for 2022. Due to Greenidge’s low power costs and miner efficiency, this model should be profitable in virtually any market environment.
Operating at a hashrate of 1.1 EH/s, Greenridge expects to achieve 2.6 EH/s in 2022 and have at least 500 megawatts of mining capacity by 2025. Already, Greenridge’s hashrate matches Riot and is only exceeded by Marathon whose cost per MWh is still $6 higher than Greenridge’s. Although Greenidge is currently operating at 19 megawatts, it owns a 106 MW gas-fired power plant.
Until recently, Greenridge was delayed by New York’s ban on power plants used for bitcoin mining, however the ban was lifted and the powerplant can now be used solely for mining operations. With an infusion of roughly $33 million from Support.com upon merger, production will likely accelerate. Together, the companies will have over $70 million in net cash pro forma the merger which is scheduled for Q3 2021. The stockholders are scheduled to vote on the terms of this merger agreement on September 10th.
As is, the bitcoin network is rapidly expanding and Greenidge will be uniquely situated to take advantage of increasing transaction fees after the merger. Because more transactions create greater congestion, the fees will be driven up by demand and fewer block rewards will cause transaction fees to become a greater incentive for miners. Support.com is poised to capitalize on this structure through its merger. SPRT’s stockholders and option holders will be collectively rewarded with roughly 8% of the combined company’s outstanding Class A common stock. Already signs of a short squeeze appear to be materializing as excitement spreads for this low-float, small cap stock.
Yes indeed, it was only a matter of time. OTC FinTwit legend, @yatesinvesting, has been following SPRT stock for some time and his 235.4k followers have no doubt been watching SPRT stock climb with glee.
SPRT stock has been climbing recently, putting the stock at a new support of 11.57 with a secondary at 8.73. Its fresh resistance level is at 13.63. Yesterday – August 24th – SPRT stock became significantly overbought, reaching 80.71 before market close. SPRT stock closed at $11.67 and was up $0.78 during pre-market trading. Now, RSI is at 62.37 but appears to be moving upwards. Accumulation fell notably on August 13th, but shot back up yesterday. The MACD is sky high with the indicator downtrending to crossover with the signal line and flattening after market close. Currently SPRT stock is trading at $12.47 – a 74% increase or $5.31 difference from when we last alerted investors to this rising stock.
SPRT is also heading into a short squeeze which may drive the stock up to newfound heights of $30 or more as its goes parabolic. However, its impossible to know when the selloff will begin so book your profits on the way up. Selling shares in 10% increments will ensure you profit off of the stock’s rise without endangering your entire investment. At the same time, you will still have money in the stock if it continues to climb. No one can time the perfect entry and exit points, but you can profit off of the squeeze without risking your investment.
Should you Buy?
Given the incredible opportunity this merger presents for stockholders, it seems very likely that the merger details will be approved on September 10th. If a short squeeze materializes, investors will enjoy a significant gap up in SPRT’s stock value before a selloff. However, Greenidge’s demonstrated success at crypto mining is a reassuring sign that SPRT will retain significant value and investors who are confident in crypto’s rapidly expanding role will maintain their stake in the company. Investors could make short term gains on SPRT stock which, at this rate, may hit $20 or more in the runup.
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