Ault Global Holdings (DPW) Stock Climbs On Revenue Growth

Ault Global Holdings Inc (NASDAQ: DPW) is screaming for the top in the market this morning after announcing its preliminary financial and operational results for the second quarter of 2021. Investors are cheating on the more than 1,000% growth in revenue. 

Here’s what’s going on:

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DPW Announces Financial Results

In the press release, Ault Global Holdings said that revenue is expected to come in at around $62 million, up from $5.4 million, representing a 1,048% increase from the prior quarter. The brunt of the revenue came from lending and investing activities, which represented $53 million of the company’s revenue. 

About $40 million of the revenue came from the company’s investment in Alzamend Neuro, a preclinical stage biopharmaceutical company focused on the development of treatments for neurodegenerative diseases and psychiatric disorders. 

Moreover, revenue from cryptocurrency mining came in around $300,000 as a result of the company resuming mining operations with about 1,000 mining machines in March. 

Moreover, income before taxes came in at $44 million, representing the company’s second consecutive quarter of profitability. 

Management Commentary

In a statement, Milton “Todd” Ault, III, founder and CEO at Ault Global Holdings, had the following to offer:

Our preliminary financial results in the second quarter of 2021 reflect strength of our lending and trading activities at DP Lending, our financial services subsidiary. We believe our current lending and investing pipeline is strong and if the market conditions for investing in small cap stocks remains strong, the future prospects for the Company are extremely promising. We see strength across all our subsidiaries and expect to allocate additional capital to our lending and investment platform in the third quarter. Simply stated, we are in the strongest position of our Company’s 52-year history. As discussed in the previous quarter, our key initiatives for 2021 include:

  • exploring a potential IPO or other transaction to access capital markets for our Gresham Worldwide defense business;
  • exploring a potential IPO for our power electronics and electric vehicle charger business;
  • completing the initial 30,000 square foot buildout of our Michigan data center;
  • ramping up cryptocurrency mining operations at our Michigan data center;
  • ramping up fulfilment of the $50 million MTIX purchase order for MLSE plasma-laser systems;
  • expanding our loan and investment portfolio at DP Lending; and
  • considering further acquisitions.

With the strongest balance sheet in the Company’s history, a capable management team and a talented group of CEOs at the subsidiary level, the future prospects look bright for the Company.

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The Bottom Line

The bottom line here is that Ault Global Holdings is firing on all cylinders. The company’s activities have led to tremendous growth in revenue both quarter over quarter and year over year, and the fact that the company just closed out its second consecutive quarter of profitability is exciting. All in all, if you’re not watching DPW stock yet, you’re likely missing out. 

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