Digital Power Corporation (NYSEAMERICAN: DPW) is having a relatively strong start to the trading session this morning after the company made an announcement with regard to co-locations as part of its goals surrounding cryptocurrency mining. Today, we’ll talk about the announcement, what we’re seeing from the stock, and what we’ll be watching for with regard to DPW ahead.
DPW Gains On Co-Location Announcement
As mentioned above, Digital Power Corporation is having a relatively strong start to the trading session this morning after the company announced that it has added the use of co-locations to its deployment strategy surrounding cryptocurrency mining. This is one of the strategies that the company is using in order to achieve its goal of 10,000 digital miners of cryptocurrency deployed worldwide.
In the press release, DPW informed investors that it entered into its first co-location agreement last week. The agreement covers the installation of 1,000 units digitally mining a mix of the top 10 cryptocurrencies. This is in addition to the units that are already operating.
DPW said that the cryptocurrency mining division decided that co-locations would be the best way to attain its goal of 10,000 machines in a timely manner. Essentially, these locations host servers and network devices that can rapidly be leveraged.
In the press release, Digital Power Corporation said that these co-locations offer some great advantages. These advantages include privacy, security, operational access and control, strong power capacity and redundancy, and come with great operation expertise.
What We’re Seeing From The Stock
As investors, one of the first things that we learn is that the news moves the market. With news that DPW is working hard to reach its goal of 10,000 digital currency miners, it only makes sense that investors are excited and pushing the stock toward the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (9:40), DPW is trading at $4.33 per share after a gain of $0.19 per share (4.59%) thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on DPW. In particular, we’re interested in following the story surrounding the development of the company’s cryptocurrency mining division. However, don’t forget about the company’s work in power systems for the commercial and defense sectors, as these areas of the business are definitely growing as well. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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