As per a press release this morning, Digital Brands Group (NASDAQ:DBGI), an online apparel conglomerate, announced that it will begin allowing cryptocurrencies as payment across its entire suite of luxury lifestyle brands. The news has investors piqued as DBGI stock remains elevated from a 56% spike late last month.
Digital Brands Group is a vertically integrated, direct-to-consumer and wholesale apparel company. The group owns and operates several clothing brands including DSTLD, ACE Studios and Bailey 44 while maintaining overarching leadership via its flagship company. These brands cover popular retail categories across both men’s and women’s contemporary clothing.
Although these brands primarily operate online, Digital Brands has expanded to select retail stores in North America at self-owned showrooms. DBGI has been hot lately after launching its DSTLD brand on Amazon (NASDAQ:AMZN) Prime last week as retail investors clamor over the high growth prospect.
DBGI Stock Remains Optimistic Following the Crypto Play
The company operates largely on independent e-commerce platform Shopify (NYSE:SHOP), which has facilitated its move into digital assets. In the press release, Hil Davis, CEO of Digital Brands, touts crypto’s potential.
“Shopify enables our brands to accept cryptocurrencies as a form of payment. We believe this form of payment will continue to grow as a potential currency in our industry.”
Shopify currently allows over 300 digital currencies, but leaves it to the vendors to decide which cryptos they would like to accept. It’s unclear which currencies DBGI will prefer, but mainstays like Bitcoin (CCC:BTC-USD) and Ethereum (CCC:ETH-USD) are safe assumptions. This latest news, combined with recent bullishness on Shopify and crypto, makes DBGI stock worth watching into the holiday season.
Heading into the afternoon, the stock has cooled slightly from yesterday but is still up considerably from last month as the company continues to transition into its “growth phase” that will continue through 2022. Keep an eye on DBGI as the company continues to make future-proof plays into the digital market.
On the date of publication, Shrey Dua did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.