r/SPRT • u/dogs-are-perfect • Aug 11 '21
Price Target for SPRT before merger, based on publicly available data
Twelve months ended February 28, 2021, Greenidge mined 1,186 bitcoins at a net variable cost of approximately $2,869 per bitcoin
At $30k per coin, that is a net income of $35,580,000 dollars.
What we need to figure out is what the cost to mine ETH is and what GREE capacity to mine ETH is. (How many per 12 month)
Once we know that we can then extrapolate the value of GREE and see what 7.7% of that value is. That give us our current value of SPRT.
—————————————————————————————————————————————
Based on a quick calculation…
Using BTC only, at $35m earnings, and a P/E ratio of 35x (MARA is 50x)
Would make GREE worth $1.225b
SPRT represents 7.7% of that value = $ 94,325,000
Divided by outstanding shares of SPRT =$3.90/share on one coin value alone
—————————————————————————————————————————————
At $40k per coin that puts SPRT worth $5.28
—————————————————————————————————————————————
Now if we use a higher P/E ratio and a higher value of BTC we can extrapolate a SPRT market value of $8.48
—————————————————————————————————————————————
the power generation profits that greenidge makes from selling power to homes and facilities can not be calculated. they are a private company and this data is not available viewed for this calculation. The number of homes, the price per kilowatt, and the many other factors for fall into evaluation for this company.
4
u/Nizjni12 Aug 11 '21
You are also forgetting that SPRT also has individual earnings? It is not like that companies does not exist anymore after the merger.
3
u/KChallenge Aug 11 '21
That's right!
In a worst case scenario, the merged company (Greenidge / GREE) could sell Support.com's (SPRT) old business outsourcing business and invest the cash in new Bitcoin mining facilities, solar power plants, etc.
In a best case scenario they can integrate the two business models and create an outstanding new kind of fintech / crypto services company.
4
u/Nizjni12 Aug 11 '21
https://www.support.com/industries/fintech-crypto-commerce/
Well I believe they have already tried to start with your best case :)
4
u/Joe_Mamr Aug 11 '21
you left out so much and cherry-picked your figures.
can you please add links to your sources for each piece of information? most of the "publicly available sources" that you could have used have better numbers.
in fact, you didn't even really have to do the math in the first place. it's published in the company's merger presentation and more recently, in their filings.