Shares of Digital Power Corporation DPW 31.01% were soaring Wednesday morning after the company announced the creation of a new business unit dedicated towards mining cryptocurrencies.

What You Need To Know

Digital Power is a company that designs, manufactures, and sells power system solutions for applications across various markets. The company’s new business unit will be tasked with mining the top cryptocurrencies, including bitcoin, Ethereum, Bitcoin Cash, Litecon, Dash, and Monero. Management has already secured an agreement with IMG Networks to establish a series of digital mining farms across the world to house over 10,000 mining machines.

Why It’s Important

Digital Power said it has already tested multiple digital mining equipment and has identified what it tops priority will be to maximize revenue. The company believes it has a competitive advantage in its ability to mine cryptocurrencies for three reasons:

  • Nearly 50 years of experience in developing advanced power solutions to Fortune 500 companies;
  • The ability to leverage its already existing infrastructure; and
  • 13 years of experience in server administration and networking engineering.

What’s Next?

Digital Power’s announcement comes a day after a short report from TheStreetSweeper, which suggested the company’s exposure to bitcoin isn’t as notable as the stock’s nearly 700 percent surge over the past two weeks would suggest.

Digital Power has also scheduled an online webinar presentation which will be held Dec. 20.

At time of publication, the stock traded up more than 36 percent at $5.66.