DPW Holdings Inc (NYSEAMERICAN: DPW) is having an overwhelmingly strong start to the trading session in the pre-market hours this morning after the company announced that it has used Bitcoin mined by its subsidiary to reduce the company’s debt in a big way. Of course, the news excited investors, sending the stock screaming for the top in the market. Today, we’ll talk about:
- The news;
- what we’re seeing form DPW as a result;
- and what we’ll be watching for with regard to the stock ahead.
DPW Announces News
As mentioned above, DPW Holdings is having an incredibly strong start to the trading session in the pre-market hours this morning after announcing that it has used Bitcoin mined by its subsidiary to reduce debt. In a press release issued early this morning, the company announced that it used Bitcoin mined by its subsidiary, Super Crypto Mining, Inc, or SCM, to reduce the company’s debt. In the release, DPW said that this marks a milestone for the company and possibly the use of Bitcoin on a commercial basis.
Today, DPW made a payment of $500,000 toward debt that was acquired through the acquisition of Enertec by its subsidiary Coolisys technologies. This is overwhelmingly positive news as the company leveraged Bitcoin to make this payment, avoiding a dilutive transaction. In a statement, Milton “Todd” Ault III, CEO and Chairman at DPW had the following to offer:
We believe this transaction of reducing the debt incurred from the purchase of Enertec with the cryptocurrency we have mined validates Bitcoin’s value as a commodity and the use of cryptocurrencies as an alternative to fiat currency. DPW will expand its cryptocurrency mining operations as well as explore other paths to further advance the use of Bitcoin… Having a lender provide capital for our acquisitions while our company is able to mine and use cryptocurrency to reduce debt that is used to purchase an asset, marks an important moment in the transactional use of Bitcoin for both the Company as well as the crypto community.
What We’re Seeing From The Stock
As investors, one of th efirst lessons that we learn is that the news moves the market. In the case of DPW, the news proved to be overwhelmingly positive. Through the use of Bitcoin mined by its subsidiary, the company was able to pay a large chunk of debt in a way that’s good for not only the company and its management, but its shareholders. So, it’s no surprise that we’re seeing strong movement in the value of the stock as excitement hits investors. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:51), DPW is trading at $0.78 per share after a gain of $0.13 per share or 19.74% 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 company’s ongoing work with regard to cryptocurrency mining as it is showing that this work is fruitful. We’re also interested in following the company’s commercial and defense work and more. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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