DPW Holdings Announces Spin-Off Cryptocurrency Mining Company, Shares Pump 25%
Investment company DPW Holdings announced plans to spin-off their cryptocurrency holdings into a new company. DPW, a diversified holdings company traded on the New York Stock Exchange (NYSE), previously owned cryptocurrency company Super Crypto.
In order to better prepare Super Crypto for the future, DPW has decided to split the companies in two. Since this announcement, DPW shares have spiked more than 25%. The split will allow investors to speculate on the prices of DPW and Super Crypto separately. Because the split will also mean the creation of a new board of directors for Super Crypto, it means the DPW board can focus on DPW, and Super Crypto can bring a more cryptocurrency-minded board to the boardroom.
Super Crypto
Super Crypto is a cryptocurrency mining company with many product offerings. Their Super Miner “AntEater” is a Bitcoin Application-Specific Integrated Chip (ASIC) that mines Bitcoin at 17.2 TH/s, putting it on par with miners from Bitmain. The company also mines for itself, and also allows users to rent hash rate via their website.
To proceed with this spin-off, DPW will “declare a distribution of shares of common stock of Super Crypto to the stockholders of DPW.” The price increase in DPW could signify investors rushing in to get the “free” Super Crypto shares, much like forks or airdrops in the cryptocurrency space. DPW leadership seems confident in the future of the cryptocurrency space:
We are confident crypto-mining and the cryptocurrency marketplace will flourish in the long term and think there is significant value in Super Crypto and its various initiatives which require the ability to finance their growth independently...Regardless of the current downturn in the cryptocurrency space, we believe the assets of Super Crypto will be able to serve as the foundation of an independent company with the ability to raise its own capital. Milton “Todd” Ault III, CEO & Chairman, DPW Holdings