Remember SPRT inventory? That’s gone now, however no worries. Tech help specialist Support.com remains to be right here – it’s merged with Greenidge Generation (NASDAQ:GREE) and in consequence, now you can commerce GREE inventory as an alternative of SPRT.
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In March, Support.com revealed that it had entered right into a definitive merger settlement with Greenidge, “expected to close in Q3 2021.” The stress constructed up over the next months, till the Sept. 10 shareholder meeting to approve the merger lastly occurred.
Hooray – the merger deal was accepted. So now, Greenidge Generation is tradable and buyers get a bundle deal with GREE inventory as they’re getting publicity to 2 companies directly.
Whether that’s a very good factor or not, is a distinct query fully. If you’ll be able to heat as much as the thought of investing in two fully completely different market segments, then Greenidge would possibly put some inexperienced in your display screen.
An Inauspicious Start for GREE Stock
GREE isn’t a $1 or $5 inventory, by any means, nevertheless it strikes like one. By that, I imply it’s fairly risky.
Sept. 21 was simply a mean day, with no company-specific information for Greenidge Generation. Yet, the share worth was down 8% in afternoon buying and selling.
That’s the best way it goes with GREE inventory, so please preserve your place dimension small with this one.
Why is it so risky? For one factor, SPRT inventory was probably a goal of the Reddit short-squeeze mob. Those identical social media merchants would possibly goal Greenidge, too.
Second, the GREE inventory worth is strongly affected by the actions of Bitcoin (CCC:BTC-USD). That’s as a result of, as we’ll focus on right this moment, Greenidge Generation is a cryptocurrency mining enterprise.
Now, let’s focus on the value motion of the inventory. As InvestorPlace contributor Samuel O’Brient reported, Greenidge Generation shares lastly began buying and selling on Sept. 16.
Unfortunately, GREE inventory plunged 30% on its first day of buying and selling on the Nasdaq Exchange. With that, the inventory landed within the low $40’s, and it was all downhill from there.
Have Fun, however Be Cautious
By Sept. 21, the share worth was under $30 and falling quick. So, is that this a dip-buying alternative, or only a falling knife to be prevented altogether?
I had a sense that one thing like this is able to occur. Keep in thoughts, SPRT inventory had already gone up a whole lot of proportion factors, in anticipation of the Greenidge merger.
After the “purchase the rumor” part petered out, the one probably decision was a “promote the information” part.
At least now, although, it’s doable to have enjoyable with a really small place in GREE inventory.
And, remember that you just’ll largely be investing in cryptocurrency mining, and never very a lot in Suppport.com’s tech help enterprise.
As InvestorPlace contributor share of SPRT inventory entitled the shareholders to 0.115 Greenidge shares. Thus, “we can not count on Support.com’s enterprise to contribute a lot to the brand new entity.”
It’s All About Bitcoin and ESG
Really, then, GREE inventory is generally a stake in the way forward for Bitcoin mining.
At the identical time, it’s additionally an funding with an ESG (environmental, social and governance) focus.
As the corporate boasted, Greenidge Generation anticipated “to be the primary publicly traded bitcoin mining firm with a wholly-owned energy plant.
Furthermore, the corporate owned an “environmentally-sound” 106-megawatt pure gasoline plant powering 19 megawatts of mining capability. That’s an entire lot of throughput, I’ll admit.
Plus, Greenidge expressed its expectation that its mining capability would attain 85 megawatts by the top of 2022.
I’ll allow you to determine whether or not pure gasoline is “environmentally-sound,” as the corporate claims it’s.
Natural gasoline remains to be a fossil gasoline and it emits air pollution, albeit usually not as a lot as petroleum or coal does.
The Bottom Line
So, there you’ve it: an funding involving a small serving to of tech help, a heap of crypto mining and a touch of ESG for good measure.
It’s attention-grabbing, however not super-safe. GREE inventory is the kind of funding which might present big returns or huge losses.
Either means, be at liberty to have enjoyable with this newly listed Nasdaq inventory. Just please, don’t go loopy and cargo the boat.
On the date of publication, David Moadel didn’t have (both straight or not directly) any positions within the securities talked about on this article. The opinions expressed on this article are these of the author, topic to the InvestorPlace.com Publishing Guidelines.
