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home / news releases / dpw stock has 16 000 reasons to be mining gains toda


DPW - DPW Stock Has 16000 Reasons to Be 'Mining' Gains Today

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Diversified holding company Ault (NYSE:DPW) is in good spirits this morning after one of its subsidiaries announced plans to obtain “no less than 20,000 Bitcoin (CCC:BTC-USD) miners.” Accordingly, DPW stock is up 19% into the morning as the markets get excited over Ault’s hash rate.

Source: Mark Agnor / Shutterstock.com

As per a report yesterday, BitNile, an emerging financial technology company owned by Ault, has entered into agreements with Bitmain Technologies to purchase 16,000 Bitcoin miners as part of its stated 20,000 miner quota. As a result, BitNile’s hash rate will increase to 2.16 exahash per second.

A “hash” is a standard length alphanumeric code, used as a sort of conduit in crypto-related transactions. Miners produce new hashes by changing a single value of the code, thus adding a block to the chain. Furthermore, the process is time- and electricity-intensive and tends to become more elaborate the further down the chain one gets.

As such, the miners are actually powerful processors. These processors are capable of rapidly testing millions of hashes to find a new one to add to the Bitcoin blockchain.

So What Does the Bitcoin Boom Mean for DPW Stock?

Current expectations are that BitNile will receive the 16,000 newly purchased miners between March and September of next year. Consequently, BitNile’s Bitcoin mining operation should rake in a gross annualized revenue up to $320 million. This is based on an expected BTC value of $60,000 and $65,000.

Ault Executive Chairman Milton Todd Ault, III, commented on the deal:

“Ault Global is pleased to announce the expansion of our strong partnership with BITMAIN, the global leader in cryptocurrency mining and technology. These new purchase orders continue to demonstrate our commitment to our strategic initiatives of becoming one of the top 10 publicly traded Bitcoin mining companies and building one of the most efficient Bitcoin mining operations in the industry. We reconfirm our belief that Bitcoin mining is a fundamental pillar of the digital currency ecosystem, and we intend to be a key contributor to help build a borderless, decentralized and environmentally conscious economic future.”

The move will likely completely dwarf BitNile’s current bottom-line. Based on its current mining production, Bitnile yields roughly $14 to $15 million annually from mining. That’s a far cry from the more than $300 million in gross revenue deemed possible with the new mining capacity. Ault has already sold roughly $200 million in common stock for the stated purpose of funding the miners purchase.

And the markets didn’t miss a beat. Aside from the February meme-stock boom, Ault has been riding relatively steady this year. This recent news comes with timely company. Another Ault subsidiary, TurnOnGreen, announced last month the launch of its first residential electric vehicle (EV) charger. Ault is eying long-term growth from the moves.

On the date of publication, Shrey Dua did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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The post DPW Stock Has 16,000 Reasons to Be ‘Mining’ Gains Today appeared first on InvestorPlace.

Stock Information

Company Name: DPW Holdings Inc.
Stock Symbol: DPW
Market: NYSE

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