Digital Power Corporation (NYSE:DPW) announced today that it has launched a new business division dedicated to mining cryptocurrencies. The Company’s initial strategy is to mine the top ten cryptocurrencies including Bitcoin (“BTC”), Ethereum (“ETH”), Bitcoin Cash (“BCH”), Litecoin (“LTC”), Dash (“Dash”) and Monero (“XMR”). To lead the launch and development of the cryptocurrency mining endeavors, the Company has entered a management services agreement with IMG Networks (“IMG”) of San Diego 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, as previously announced in a press release dated August 10, 2017. Since September 2017, Digital Power and PoW Digital Mining tested an array of digital mining equipment in its efforts to identify initiatives the Company should pursue and lay the basis of their priority. With the Company’s recent decision to create a cryptocurrency mining division, the testing complex has been transitioned to the commercial generation of revenue. Given the recent approval of Bitcoin to be publicly-traded over two U.S. national exchanges (Chicago Board Options Exchange (“CBOE”) Futures Exchange (“CFE”) and Chicago Mercantile Exchange) and other advances with respect to government regulation and more general acceptance of cryptocurrency by commercial businesses, the Company believes these circumstances bolster the strength of its internal forecasts and enhance the viability of its new business development strategy. The Company believes that it has a competitive advantage based on the following factors:
- Over forty-eight (48) years of developing and manufacturing advanced power solutions to some of the most iconic businesses on the Fortune 500.
- The ability to leverage its existing infrastructure, capacity and excess space at the various manufacturing facilities of Digital Power and its subsidiaries. These facilities comply with applicable governmental or military requirements with agency-issued certificates corroborating these facts. Moreover, each facility has readily available military-grade power solutions to operate digital mining operations. The Company believes its ability to exploit the inherent attributes of its facilities in Northern and Southern California, Connecticut and Great Britain will reduce initial costs and help shorten the time requirement to establish digital mining operations at these locations.
- The thirteen (13) years of technical and practical experience of IMG in Information Technology such as server administration, network engineering or, in this case, digital mining farms.
IMG Network’s expertise lies in information technology, software development, network engineering, and web development and programming. IMG serves both commercial and defense contracts. IMG is involved with several governmental contract vehicles including the U.S. Navy’s Seaport-E and the GSA Stars II Governmentwide Acquisition Contract. IMG Networks, a division of Imagine Media Group, LLC, is a California limited liability company formed in 2004. IMG holds several small business certifications at all government levels including a Small Business Administration (SBA) 8(a), a Small Business designation with the California Department of General Services, and ELBE with the City of San Diego. As a service provider, the core competency of IMG is contract management; in addition, in its capacity as a solutions provider, IMG combines a wide array of technical expertise with a customer-centric philosophy focused on meeting mission needs.
The Company also disclosed today that it has been made aware of numerous unfounded and unsubstantiated inquiries and rumors but cannot address each and every one of them. However, Digital Power reminds all shareholders, investors and the public that its many years of manufacturing quality products, cultivation and retention of long-term clients and leading innovation should speak for itself as the Company continues to pursue new endeavors while expanding current revenue streams for the benefit of all interested parties. To maintain the maximum transparency with shareholders, investors and the public, the Company intends to use its best efforts to provide complete and contemporaneous disclosure of its operations.
The Company also reminds shareholders, investors and the public that it will be hosting an online webinar for its shareholders, investors and the public on Wednesday, December 20, 2017, upon the close of the financial markets that day. All individuals interested in participating in the webinar can email the Company to participate at firstname.lastname@example.org.
ABOUT DIGITAL POWER
Headquartered in Fremont, CA, Digital Power Corporation, through its subsidiaries, designs, manufactures and sells high-grade customized and off-the-shelf power system solutions. Our products are used in the most demanding communications, industrial, medical and military applications where customers demand high density, high efficiency and rugged power solutions. The Company’s wholly owned subsidiary, Coolisys Technologies, Inc., is dedicated to providing world-class technology-based solutions where innovation is the main driver for mission-critical applications and lifesaving services. Coolisys’ growth strategy targets core markets that are characterized by “high barriers to entry” and include specialized products and services not likely to be commoditized. Coolisys Technologies, Inc., a developer and manufacturer that services the defense, aerospace, medical and industrial sectors, has three subsidiaries including Digital Power Limited dba Gresham Power Ltd., www.GreshamPower.com, a manufacturer based in Salisbury, UK.; Microphase Corporation, www.MicroPhase.com with its headquarters in Shelton, CT 1- 203-866-8000; and Power-Plus Technical Distributors, www.Power-Plus.com, a wholesale distributor based in Sonora, CA 1-800-963-0066.