Ault Global Holdings Inc (NYSEAMERICAN:DPW) Stock Falls Despite The Partnership News
The diversified holding company Ault Global Holdings Inc (NYSEAMERICAN:DPW) saw its stock take a significant dive yesterday and decline by as much as 5% as a consequence.
Market Stats
On Wednesday, DPW stock fell 5% at $2.08 with more than 5.40 million shares, compared to its average volume of 3.95 million shares. The stock has moved within a range of $2.0500 – 2.1850 after opening the trade at $2.17. .
Subsidiary BitNile Enters into Partnership with Bitmain
While the decline in the stock may be substantial it is perhaps also necessary to keep in mind that such a decline could also prove to be an opportunity for investors. Hence, it might be a good time for investors to take a look at the announcement that was made by Ault Global on Wednesday. The company announced yesterday that its subsidiary company BitNile Inc got into a partnership agreement with Bitmain Inc.
The company consummated the partnership through the acquisition of the S19XP Antiminers from Bitmain. In this context, it is important to note that the Antiminers have a capacity of as much as 140 TH/s and on top of that the power consumption only stands at 3.1 kilowatt-hours.
The company decided to go for these Antiminers because these machines will not only provide the miners at BitNile with faster mining machines but also consumer lesser energy. It is a significant development for BitNile and by extension for Ault Global Holdings. Investors could do well to keep an eye on the company’s stock at this point.
Key Quote
Milton “Todd” Ault, III, the Company’s Executive Chairman, stated, “Ault Global is undergoing a sea change in its capital allocation strategy to recognize the present generational opportunity in cryptocurrency. We believe Bitcoin mining to be a fundamental pillar of the digital currency ecosystem and we intend to be a key contributor to help build a borderless, decentralized and environmentally conscious economic future.”
Traders Corner
DPW stock is trading below the 20-Day and 50-Day Moving averages of $2.24 and $2.38 respectively. Moreover, the stock is trading above 200-Day moving average of $2.93. The stock is down 9% in the past month.
