DPW Holdings Inc., an investment company in the United States, has made plans to spin off its crypto-mining business, Super Crypto Mining. As a result of the announcement, the shares of DPW Holdings was up more than 25% at $0.29 ahead of Tuesday’s opening bell in the U.S.
Idea Behind The Spin-off of Super Crypto Mining
DPW’s CEO and chairman, Milton “Todd” Ault III, said in a press release that they are confident the crypto industry will be prosperous in the long term.
“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,” said Milton.
DPW said it would pay a special dividend of at least 80% of Super Crypto’s common stock to DPW shareholders. That will give these investors the opportunity to own a “pure play” crypto company.
DPW says the spin-off can position Super Crypto for the recovery in the bitcoin price. “This transaction positions Super Crypto Mining for a bitcoin recovery,” Milton said.
“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 capital.”
It has been a turbulent year for crypto investors. Prices have snowballed into the abyss in 2018. Bitcoin, for example, began 2018 with prices around $12, 000 before nose-diving to about $4000 with 11 months. However, over the last 24 hours, there’s been a surge in the price of Bitcoin. Bitcoin rising by over 12 percent, according to data on CoinMarket Cap.
DPW Holdings engages in the design, development, manufacture, and sale of customized and flexible power system solutions. Basically, for the medical, military, telecom, and industrial markets. The Super Crypto Mining division is one of the main division of the company.