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SPRT Stock Plunges as Shareholders Approve Support.com’s Historic Crypto Merger

InvestorPlace - Stock Market News, Stock Advice & Trading Tips This historic merger will likely mean big things for SPRT stock. Shareholders seem...

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This story originally appeared on InvestorPlace

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

Investorplace.com - InvestorPlace

In breaking news from Wall Street today, investors received an update on a highly anticipated merger that fans of both digital human resources and blockchain technology have been following. Support.com (NASDAQ:SPRT) has confirmed that shareholders have voted to approve its merger with Greenidge Generation Holdings. The catalyst that we predicted for SPRT stockholders is finally here.

Concept art of crypto mining with little figuring and a Bitcoin (BTC) token.
Source: Shutterstock

What This Means for SPRT Stock

News of the impending decision sent SPRT stock skyrocketing yesterday. The stock rose 4.57% over the past 24 hours, but this morning it began to decline sharply. As of this writing, the stock is down 13% on the day.

It isn’t unusual for a stock to dip in preparation for an important event, or after a catalyst has been confirmed. The events of this morning shouldn’t mean warning bells for either company or for its shareholders. At the meeting this morning, all proposals relating to the merger were approved, meaning seemingly little opposition.

Support.com’s CEO Lance Rosenzweig describes the response from shareholders as an “overwhelming endorsement” of the merger. He also states that “We are proud of what our team has achieved and look forward to partnering with the Greenidge team as we execute on our growth strategy to drive stockholder value.”

What Comes Next

Since news of the impending merger first broke in March 2021, SPRT stock has reacted very positively. While progress for the stock has been graduate, it has been consistent, peaking at the end of August at $36.39 per share, up from the $2.10 it began the year at. Not bad progress for eight months in a turbulent economic year.

As I recently argued, this merger makes a lot of sense for Support.com. It allows the company to merge with a dynamic, crypto-focused firm. Greenidge has holdings in both renewable energy and blockchain technology, both areas with abundant opportunity for growth. Not sure if that could have been said for Support.com on its own.

This newly merged company is poised for market success. It’s been targeted as a potential short squeeze, but there is still plenty of reason to watch how it progresses now that the merger has been finalized. For shareholders to vote as overwhelmingly as they did, it is clear they see the merger as being in the best interest of the company. As of now, there is little reason to think otherwise.

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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