DPW Holdings Inc (NYSE:DPW) is getting pummeled by what can be explained with the age-old adage: what comes up must come down. Though the crypto market had spiraled beyond a massive $800 billion just 10 days ago and Bitcoin danced on a historic rise close to $20,000, the bubble is starting to pop. The cryptomania bubble crash is taking along with it the very companies that once were riding the blockchain boom, just like DPW.
By mid-January of last year to the beginning of December 2017, the stock shot up past 800%. Crypto excitement had been very good to this industrial stock last year.
Keep in mind, Digital Power’s wholly owned subsidiary had magnetized the Street’s interest after the tech-centric holding firm inked a fresh deal with PoW Digital Mining. Specifically, the deal gives Coolisys free reign to run its buildup of a portfolio focused on equipment-meets-services all while homing in on Digital Mining and other related research to development of crypto-currency.
Digital Power CEO Amos Kohn cheered the deal, asserting: “Starting with our current catalog of power efficient and durable products as a base, we will collaborate with PoW and combine our efforts to develop a unique in-demand portfolio of equipment and packaged solutions for personal miners and the large pool operators exploiting mining and other activities within this exciting and still often misunderstood sector.”
For a company that is a designer, manufacturer, and seller of power system solutions, DPW seized upon a digital mining opportunity with a new business unit primed to mine the top cryptocurrencies: from Bitcoin to Ethereum to Bitcoin Cash to Litecon to Dash to Monero. Introducing its first cryptocurrency hardware, Digital Power had established a deal with IMG Networks to unleash a digital mining farm series throughout the globe, housing 10,000 plus mining machines.
Yet, the 10 digital currency players at the top of the leaderboard, including Bitcoin, the king of the crypto stocks, are suddenly dipping, with Bitcoin caving in a whopping 14%. Though cryptomania had once sent DPW shares skyrocketing, yesterday, the diversified electronics company got pulled under the tidal crash, plunging almost 15%.
It is worthy of note that the company’s revenue and profit gains stemming from the crypto-verse is not substantial enough to justify such a retreat. As the very crytpofrenzy that sent DPW stock soaring is presently the industrial stock’s Achilles’ heel, shareholders should brace themselves for the wild ride that is the Bitcoin bubble- from the highest highs to sudden tailspin lows.