DPW Holdings Inc (NYSEAMERICAN: DPW) is having a great day in the market today. However, if you go digging for press releases or SEC filings, you won’t find anything that was issued this morning. Nonetheless, there’s a good reason for the gains. Today, we’ll talk about:
- Why DPW stock is climbing;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Why DPW Is Headed Up
As mentioned above, DPW Holdings is having a great day in the market today, but with no press or SEC filings issued this morning, many are wondering why. Ultimately, the gains seem to be caused by a press release that was issued on Friday.
In the release, DPW announced an update on the progress and timing of the purchase of real estate. The piece of real estate will be the home of a data center that is to be operated by Digital Farms, a wholly owned subsidiary of DPW.
In the release, the company said that the transaction is expected to be closed by the end of the second quarter of 2019. The data center will be about 617,000 square feet and has immediate access to 28 megawats of power. Moreover, the real estate has an infrastructure that can support up to 300 megawatts of power.
In a statement, Darren Magot, CEO at DPW, had the following to offer:
The closing of the real estate purchase for the data center is an important step in the execution of our long-term plan. Once the acquisition is closed, DFI will move all of its mining assets to the new location, thereby increasing overall mining profitability.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to DPW, the news proved to be overwhelmingly positive.
After all, the real estate purchase will allow the company to expand its Bitcoin mining activities as cryptocurrency values start to heat up again. So, it’s not surprising to see that excited investors are pushing the stock for the top.
As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:57), DPW is trading at $0.16 per share after a gain of $0.0077 per share or 4.97% 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 company’s real estate transaction as well as the company’s work to drive value for investors. Nonetheless, we’ll keep a close eye on the story and bring the news to you as it breaks!
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