Digital Power Corporation (NYSE:DPW) shares are vaulting 23% after the diversified electronics company has brought a new mining division to the cryptocurrency arena. The company is unleashing a new business division designed specifically for the mining of cryptocurrencies.
Keep in mind, Bitcoin mania got a boost today, with all Bitcoin players on the rise following the exciting debut of the futures contracts, which points to an ebbing of prices throughout the next passing months.
In terms of Digital Power’s new division, the opening fire for the game plan hinges upon mining the ten leading cryptocurrencies, including the likes of Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Dash, and Monero. With ambitious eyes to pioneer the launch as well as the development of cryptocurrency mining objectives, Digital Power has walked into a management services deal with IMG Networks of San Diego to foster a digital mining farm series across the globe. The goal? Kickstarting a network of beyond 10,000 digital mining machines.
Digital Power emphasized that its decision to pursue digital mining of cryptocurrencies and establish the new business division was reached through a series of evaluations, research and actions undertaken by the Company and by PoW Digital Mining, the independent consultants contracted by the Company to lead its development of its cryptocurrency endeavors, as previously announced in a press release dated August 10, 2017. Since September 2017, Digital Power and PoW Digital Mining tested an array of digital mining equipment in its efforts to identify initiatives the Company should pursue and lay the basis of their priority. With the Company’s recent decision to create a cryptocurrency mining division, the testing complex has been transitioned to the commercial generation of revenue. Given the recent approval of Bitcoin to be publicly-traded over two U.S. national exchanges (Chicago Board Options Exchange (“CBOE”) Futures Exchange (“CFE”) and Chicago Mercantile Exchange) and other advances with respect to government regulation and more general acceptance of cryptocurrency by commercial businesses, the Company believes these circumstances bolster the strength of its internal forecasts and enhance the viability of its new business development strategy. The Company believes that it has a competitive advantage based on the following factors:
- Over forty-eight (48) years of developing and manufacturing advanced power solutions to some of the most iconic businesses on the Fortune 500.
- The ability to leverage its existing infrastructure, capacity and excess space at the various manufacturing facilities of Digital Power and its subsidiaries. These facilities comply with applicable governmental or military requirements with agency-issued certificates corroborating these facts. Moreover, each facility has readily available military-grade power solutions to operate digital mining operations. The Company believes its ability to exploit the inherent attributes of its facilities in Northern and Southern California, Connecticut and Great Britain will reduce initial costs and help shorten the time requirement to establish digital mining operations at these locations.
- The thirteen (13) years of technical and practical experience of IMG in Information Technology such as server administration, network engineering or, in this case, digital mining farms.
IMG Network’s expertise lies in information technology, software development, network engineering, and web development and programming. IMG serves both commercial and defense contracts. IMG is involved with several governmental contract vehicles including the U.S. Navy’s Seaport-E and the GSA Stars II Governmentwide Acquisition Contract. IMG Networks, a division of Imagine Media Group, LLC, is a California limited liability company formed in 2004. IMG holds several small business certifications at all government levels including a Small Business Administration (SBA) 8(a), a Small Business designation with the California Department of General Services, and ELBE with the City of San Diego. As a service provider, the core competency of IMG is contract management; in addition, in its capacity as a solutions provider, IMG combines a wide array of technical expertise with a customer-centric philosophy focused on meeting mission needs.
The Company also disclosed today that it has been made aware of numerous unfounded and unsubstantiated inquiries and rumors but cannot address each and every one of them. However, Digital Power reminds all shareholders, investors and the public that its many years of manufacturing quality products, cultivation and retention of long-term clients and leading innovation should speak for itself as the Company continues to pursue new endeavors while expanding current revenue streams for the benefit of all interested parties. To maintain the maximum transparency with shareholders, investors and the public, the Company intends to use its best efforts to provide complete and contemporaneous disclosure of its operations.