DPW Holdings Inc (NYSEAMERICAN: DPW) is having a strong start to the trading session this morning. However, if you’re looking for a press release that was issued this morning or after-hours yesterday, you’ll be hard pressed. The company hasn’t issued any news.
Nonetheless, there’s a good reason for the gains. Today, we’ll talk about:
- Why DPW stock is headed for the top;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Why DPW Stock Is Gaining
As mentioned above, DPW Holdings is having a great start to the trading session this morning. However, the most recent news, released yesterday in the premarket hours, has already been priced into the market. So, what’s the deal?
Well, a big part of revenue for DPW comes from its activities in the cryptocurrency space, and some cryptocurrencies are seeing tremendous gains at the moment. The gains ultimately come from the fact that Coinbase announced that it will start allowing the trading of Ripple on its platform relatively recently.
As a result of the announcement, Ripple rocketed and continues to do so. In fact, today alone, the crypto is up by nearly 20%. This has led to a sympathy bounce across various other cryptos. Most notably, Bitcoin is up just over 10% this morning with no real reason for the gains, other than the fact that it’s following Ripple to the top.
Ultimately, an important portion of the company’s revenue comes from its cryptocurrency mining and lending activities. As a result, when cryptocurrency values rise, DPW can expect to see gains in revenue, ultimatley leading to excitement among investors. That seems to be exactly the case today.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. When it comes to DPW Holdings, the company didn’t issue any news of its own. Nonetheless, the news surrounding the crypto space today is positive and with DPW having its hands so deep in the space, that’s good news for the company.
So, it’s not surprising to see that excited investors are pushing the stock on a run for the top in the market this morning. As is just about always the case, our partners at Trade Ideas were the first to alert us to the movement. Currently (8:34), DPW is trading at $0.22 per share after a gain of $0.013 per share or 6.05% thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
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 continued work to drive value for investors through the expansion of its defense work, activities in cryptocurrency and lending business. Nonetheless, we’ll keep a close eye on the news and bring it to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!