Digital Power Corporation (NYSE: DPW) rose sharply in Wednesday trading, amid word the company reportedly created a cryptocurrency mining division.
The company out of Fremont, California issued a news release Wednesday morning saying it had launched a new business division dedicated to the mining of cryptocurrencies. The Company’s initial strategy is to mine the top 10 cryptocurrencies including Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Dash and Monero.
To lead the launch and development of the cryptocurrency mining endeavors, DPW has entered a management services agreement with IMG Networks to establish a series of digital mining farms worldwide with a goal of developing a network of over 10,000 digital mining machines.
Digital Power emphasized that its decision to pursue digital mining of cryptocurrencies and establish the new business division was reached through a series of evaluations, research and actions undertaken by the company and by PoW Digital Mining, the independent consultants contracted by the company to lead its development of its cryptocurrency endeavors.
Given the recent approval of Bitcoin to be publicly-traded over two U.S. national exchanges (Chicago Board Options Exchange Futures Exchange and Chicago Mercantile Exchange) and other advances with respect to government regulation and more general acceptance of cryptocurrency by commercial businesses, Digital Power believes these circumstances bolster the strength of its internal forecasts and enhance the viability of its new business development strategy.
For sure, the news carried a lot of excitement for investors, who dove in with both feet and sent the stock price of DPW up 93 cents a share, or 22.4%, to a new 52-week high of $5.09, a far cry from its gully for the year of 40 cents.
