Cryptocurrency might be having a down week, but that’s not stopping the debut of new crypto stocks. Holdings firm Ault Global is seeing a rebrand today in anticipation of a spin-off. The company is trading today for the first time under the BitNile (NYSE:NILE) name. But does this mean that Ault is done holding non-crypto plays? Well, not quite. NILE stock is just one step in a continued business reorganization.
As NILE stock reaches trading floors this week, investors have lots of questions on the rebrand and what it means for Ault’s previous model. Furthermore, they want to know how BitNile is presenting something different in terms of crypto investments.
Here’s everything you need to know, including the company’s first major investment as a crypto-exclusive company.
Ault Global Rebrands as NILE Stock, Plans Spin-off to Continue Previous Investing Model
- BitNile is in fact the same company as Ault Global. Ault previously traded on Wall Street under the DPW ticker.
- This week is BitNile’s first under its new ticker, NILE. The stock listed on Monday for trading at a price of $1.60; this is the price at which DPW closed on Friday.
- Ault previously had a greatly diversified portfolio of investments, including holdings in the biotech, real estate and aerospace fields.
- In a change of pace, BitNile will be exclusively focusing on cryptocurrency mining and data center operations. This rebrand follows the company’s acquisition of mining hardware, as well as a Michigan-based data center.
- According to Milton Ault, the company has plans to grow its fleet of mining hardware to 20,600 units by the end of 2022. He adds that BitNile seeks to “become one of the top 10 publicly traded Bitcoin mining companies.”
- Additionally, the company is making a major investment this week — its first as a dedicated crypto play. BitNile is leading a $15 million Series A funding round for DeFi company Earnity. The companies say the investment includes a joint venture into industry niches like non-fungible tokens (NFTs) and passive-earning DeFi protocols.
- With all of this in mind, NILE stock is a hot new power play for those looking to expose themselves to crypto mining and other ventures. And yet, the company will not be fully renouncing its past as a more traditional holding firm.
- Indeed, the company is planning on launching a spin-0ff called Ault Alliance. Ault Alliance will be a separate publicly traded company continuing where Ault Global left off.
- The Ault Alliance spin-off is set for launch in late 2022. Until then, it appears BitNile will hold Ault Global’s previous holdings. Upon Ault Alliance’s launch, BitNile will transition to crypto only.
On the date of publication, Brenden Rearick 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.
