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.
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…