Company Affirms Long-Term Blockchain Strategy by Signing MOU to Secure Real Estate Asset Providing Significant Power with Deep Cost Reduction
NEWPORT BEACH, Calif., Jan. 14, 2019 (GLOBE NEWSWIRE) -- DPW Holdings, Inc. (NYSE American: DPW), a diversified holding company (“DPW” or the “Company”), announced today that its wholly owned indirect subsidiary, Super Crypto Mining, Inc. (“SCM”), is changing its name to Digital Farms Inc. (“DFI”). In conjunction with changing its name, DFI anticipates entering into a new partnership with Digital Farms Management, LLC (“DFM”), a company with deep experience in the data center development and management sector as well as with the real estate markets. The partnership intends to purchase a data-center in Michigan and leverage the many positive attributes of the real estate asset.
DFI recognizes that controlling electrical costs at the lowest possible rates is key to ensuring long-term success in crypto-mining.
The new partnership represents a natural evolution of DFI’s long-term strategy of securing inexpensive power at more than a 60% reduction of its current cost that will be guaranteed the next 5 years. DFI believes that the reduced power costs will increase the profitability of its mining business and that the partnership will strengthen the foundation of its business by having seasoned professionals manage the partnership’s growth by leveraging the real estate asset that adds over 600,000 sq. ft. of space and the availability of up to 300 MW of power. The real estate is already cash-flow positive and is designed as a multi-use facility supporting computing (enterprise data center and high-density computing) and office and warehouse space.
CEO Darren Magot said “This new partnership demonstrates our focus on finding the lowest possible electrical costs in order to maximize profits and create future opportunities for growth within the blockchain environment. We are looking forward to working with the experienced team at Digital Farms Management as we execute on our goals for future growth in the blockchain and data center space.”
DFM will operate the new data center location for the partnership. Both DFI and DFM believe Michigan is an optimal location for this first data center for many reasons including the cooperative and helpful local city officials, significant power available onsite, no personal property taxes imposed in Michigan (making the operation of expensive computing equipment less costly for customers), low property acquisition costs, and the facility has a positive net operating income at acquisition.
CEO and Chairman, Milton “Todd” Ault, III said, “Super Crypto Mining, soon to be Digital Farms Inc., has navigated a very difficult environment demonstrating that it is clearly dedicated to blockchain and the opportunities in the space. DPW supports the transaction which will use traditional real estate financing that will be non-dilutive to DPW and its shareholders.”
For more information, DPW recommends that stockholders, investors and any other interested parties read the Company’s public filings and press releases available under the Investor Relations section at http://www.DPWHoldings.com or available at www.sec.gov.
About DPW Holdings, Inc.
DPW Holdings, Inc. is a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact. Through its wholly owned subsidiaries and strategic investments, the Company provides mission-critical products that support a diverse range of industries, including defense/aerospace, industrial, telecommunications, medical, crypto-mining, and textiles. In addition, the company owns a select portfolio of commercial hospitality properties and extends credit to select entrepreneurial businesses through a licensed lending subsidiary. DPW Holdings, Inc.’s headquarters is located at 201 Shipyard Way, Suite E, Newport Beach, CA 92663; www.DPWHoldings.com.
This press release contains “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “believes,” “plans,” “anticipates,” “projects,” “estimates,” “expects,” “intends,” “strategy,” “future,” “opportunity,” “may,” “will,” “should,” “could,” “potential,” or similar expressions. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any of them publicly in light of new information or future events. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors. More information, including potential risk factors, that could affect the Company’s business and financial results are included in the Company’s filings with the U.S. Securities and Exchange Commission, including, but not limited to, the Company’s Forms 10-K, 10-Q and 8-K. All filings are available at www.sec.com and on the Company’s website at www.DPWHoldings.com.
Mary Magnani and Kirsten Chapman, LHA Investor Relations, 415.433.3777, email@example.com
DPW Holdings, Inc.