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Today marks the final catalyst that we predicted for shareholders of SPRT as Support.com (NASDAQ:SPRT) and Greenidge Generation Holdings complete their long-awaited merger. As of tomorrow, Greenidge Class A common stock shares will begin trading on the Nasdaq under the ticker GREE. This morning, though, saw shares of SPRT stock continue the trend of plunging further, despite the merger’s continuous development.
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What Happened to SPRT Stock
As we’ve noted previously, SPRT stock has continued to decline over the past week, despite a spike during the week before. Investors chased up shares earlier in September upon news that shareholders would soon vote to approve the merger. The actual vote, though, did not have the same affect, as shares began to decline. Since then, this trend hasn’t stopped.
As of this writing, shares of SPRT stock are down 30.8% for the day. After briefly surging late in the day on Sept. 9, they have only kept declining. Yesterday saw the stock fall by 9%.
What It Means
The deal received overwhelming support from shareholders when it came time to vote, but in the days since, some analysts have expressed concern for the company’s long-term future.
Some concerns are certainly justified, although part of SPRT stock’s poor performance of late can be attributed to pure uncertainty. The deal is a bit unorthodox given the two companies it involves and how different their dealings are. Nonetheless, this area which has some concerned can also prove beneficial to Support.com and likewise, its shareholders.
It should be noted that a company like Suport.com saw merging with a company like Greenidge as its best chance at staying relevant in an ever-changing market. The latter is poised to become the first publicly traded Bitcoin (CCC:BTC-USD) mining company with its own power plant, an area that could allow them to grow considerably. The move has been called a Hail Mary pass for Support.com but if that’s true, it’s certainly a well-calculated pass that makes sense at this point in the game.
Let’s also not forget that while this merger dragged out, Support.com was able to garner meme stock status, a rare feat for a company with a business model as boring as providing digital human resource tools. Say what you will about Greenidge, but merging with it makes Support.com unquestionably more interesting.
What’s Next for These Companies?
Support.com stock has seen plenty of volatility and it may not be over yet, but that doesn’t mean that the company won’t have plenty of opportunity to grow once GREE begins trading and markets can move forward. Tomorrow will hopefully mean the end of this uncertainty, allowing us to finally assess how SPRT stock will perform in a post-merger world.
The stock is drawing a lot of criticism right now, but we shouldn’t be so quick to write it off until we see what GREE will do. Support.com’s new partner has plenty of potential.
As InvestorPlace contributor Tom Kerr recently assessed “One thing can be said for certain: now the upside for SPRT stock depends a heck of a lot more on the price of Bitcoin (CCC:BTC-USD).”
With that in mind, we should continue to watch and wait.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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