DPW Holdings Inc (NYSEAMERICAN: DPW) did overwhelmingly well in the pre-market yesterday. However, today, we’re seeing the exact opposite. There is one similarity, however. That is the fact that, yet again, there is no news on the company. Ultimately, we’re seeing a wild swing downward with no releases. Well, today, the company announced that it has postponed a webcast due to scheduling conflicts, but that usually isn’t enough to cause such a big fall. So, what’s the deal? Well, if you want to know what’s happening with DPW, all you need to do is look into the cryptocurrency market.
DPW And Cryptocurrency
For those of you that haven’t been following the company, the first thing that should come to mind is cryptocurrency when thinking about DPW Holdings. The reason for this is relatively simple. Ultimately, the company has greatly exposed itself to the crypto market, ultimately creating a correlation between what’s happening in the crypto space and what’s happening with DPW.
As cryptocurrency gained in popularity last year, it seemed as though more and more technology companies were jumping on the bandwagon. For DPW, an announcement came that the company was working on advanced power systems that were designed to power the Antminer S9, a cryptocurrency mining machine.
Shortly after the announcement of the new power supply for cryptocurrency traders, DPW Holdings announced that it would be opening up an entirely new arm of the company. Soon, the company would start mining cryptocurrencies, starting with the top 10 on the market and building out further from there.
Due to their activities in the cryptocurrency space, DPW is seeing wide swings in value as cryptocurrency prices swing. That’s why, when cryptocurrencies were up in the pre-market yesterday, so too was the stock. Then today, as cryptocurrencies start to fall, DPW is following them down.
What We’re Seeing From The Stock
With the strong correlation between DPW and cryptocurrencies and the fact that the larger cryptocurrencies on the market are falling today, it’s no surprise to see that the stock is falling quite a bit as well. Of course, our partners at Trade Ideas were the first to alert us to the movement. At the moment (8:57), DPW is trading at $1.85 per share after a loss of $0.16 per share (7.95%) 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 work in the cryptocurrency space, and following cryptocurrencies for hints as to where the stock is headed. However, it’s important to also remember that cryptocurrency isn’t the only area in which the company operates. In fact, the company has recently seen impressive growth in both the commercial and defense arms of the business. We’ll be keeping a close eye on these areas of business as well. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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