Ault Global Holdings Inc (NYSEAMERICAN:DPW) continues to move higher in the pre-market session on Monday, extending its recent gain of 26%. DPW stock has gained 20% over the past month.
Major Trigger:
Ault Global Holdings Announces Investment to Increase Its Power Capacity at Its Michigan Technology Data Center Accelerating Growth to Projected Annual Gross Revenues Between $54 Million and $64 Million
Key Highlights:
- announced today that the Company anticipates making an additional investment in Ault Alliance, Inc., its wholly-owned subsidiary, to expand the infrastructure of its technology data center in southern Michigan and increase the power capacity to 28MW.
- The Company’s decision to accelerate the timing of its investment in the technology data center was driven by an increase in demand for high-density computing due to improved business conditions for cryptocurrency mining, including the market prices of digital currencies. By dedicating the increased power capacity for high-density computing, which requires a significantly smaller footprint, the Company anticipates that this investment will allow the Company to reduce the timeline to reach its revenue projections.
- At 50% capacity, the technology data center is expected to generate annual gross revenues between $54 million and $64 million. The technology data center power capacity can be further expanded in the future, up to 300MW. The technology data center features cloud, high-density, and enterprise data center services and is operated by Alliance Cloud Services, LLC (“ACS”), a subsidiary of Ault Alliance, Inc.
Darren Magot, the CEO of Ault Alliance, said, “Given the interest ACS has received, we decided that it would be beneficial for us to expand the infrastructure of the data center to accommodate the higher-density power demands from both our existing tenants and new prospects. We are especially proud of the fact that over 94% of the power in our facility comes from non-coal sources which supports our green energy initiatives. We are very pleased with the interest that our ACS Data Center has generated, validating our strategic plan, and driving this accelerated expansion.”
Market Reaction
As of 8:29, DPW is trading at $2.78, up 1.46%. So far more than 30K shares have exchanged hands.
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