Company: DPW Holding INC (NYSE AMERICAN:DPW)
Exposure: Digital Asset Mining, Cloud Mining, Various Subsidiaries Involved in Power Systems Design and Deployment
- Digital asset mining exposure
- Specific subsidiary of interest: Super Crypto Mining
- Potential cloud mining exposure with low hash rate purchase price
- Available to more consumers
- Aggressive plan to have 10,000 operational mining units by end of 2018
- Currently close to having 5,000 operational units
- Diverse holdings of subsidiary companies involved in power system activities
- Development plans and consistent progress updates
Reasons to be bullish
Aggressive purchasing plans for digital asset mining units with the added benefit of potential cloud mining operation. Advantage of being a well capitalized public company to engage in these transactions in a competitive market space. Also – upside from subsidiary companies engaged in the growing opportunity of power systems development and deployment.
Reasons to be bearish
There are a lot of holdings in this company and mining for profit is competitive. Does an investor want to own a company for digital assets that is not solely focused on digital assets? Due diligence is hard to perform on all of the holdings.
Digital asset mining is an arms race and companies with aggressive plans should be considered for potential exposure to a rapidly growing asset class.
Super Crypto Mining clearly states aggressive plans and goals. There is an active communication line to investors. A lot of mining exposures do not have the updates and laid out plan this subsidiary of DPW offers.
Eventual Cloud Mining offering would further diversify revenue stream from mining activities and offer investors a less volatile fee based revenue stream. Complementing earnings from the coins directly mined by the Super Crypto subsidiary for profit.
Competition is abundant in the digital asset mining business. DPWs experience developing and deploying large scale power solutions provides it a potential edge in the sector. Given how closely profitability in the mining space is aligned with efficient power consumption.
The ceiling is probably lower than pure crypto investments. The floor is higher though given the diversity of their businesses and expertise in deploying large scale power solutions with cost efficiency.
If the mining business entices you as an investor, take a look at the other components of their business and evaluate if the juice is worth the squeeze.
Legal Information and Disclosures
This review expresses the views of MPower365 as of (2/16/2018) and such views are subject to change without notice. MPower365 has no duty or obligation to update the information contained herein. Further, MPower365 makes no representation, and it should not be assumed, that past investment performance is an indication of future results. Moreover, wherever there is the potential for profit there is also the possibility of loss.
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*Principals of MPower365 own stock (as of 2/16/2018) in DPW Holdings (DPW)