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RANCHO CUCAMONGA, Calif. - iPower Inc. (NASDAQ:IPW), a small-cap company with a market capitalization of $19.25 million, announced Tuesday a strategic repositioning approved by its Board of Directors to transform into a crypto treasury and blockchain infrastructure services company. According to InvestingPro data, the company’s stock has experienced significant volatility with a beta of 3.44, making this strategic shift particularly notable.
The e-commerce platform provider plans to begin accumulating Bitcoin as a treasury reserve asset, according to a company press release. This initiative marks a significant departure from iPower’s current business model, which generated $74.11 million in revenue over the last twelve months. InvestingPro analysis indicates the stock is currently trading below its Fair Value, suggesting potential upside for investors who believe in this strategic pivot.
"Our entry into Bitcoin represents a strategic allocation decision grounded in our long-term view of digital assets as a viable treasury component," said Lawrence Tan, CEO of iPower.
As part of its transformation, the company intends to expand into blockchain-related retail services, including:
- Retailing cloud mining power
- Distributing home-use mining equipment
- Launching a new line of cold wallets and digital asset custody tools
iPower plans to integrate these services into its proprietary SuperSuite platform while continuing to support its existing operations during the transition period.
The company stated it will release additional updates regarding its treasury activities, new product offerings, and partnerships in the coming months.
iPower currently operates as an online retailer providing e-commerce services for third-party products and brands, with capabilities including online channels, fulfillment capacity, and a nationwide warehouse network. The company maintains a healthy liquidity position with a current ratio of 1.92, though its shares have declined 70.62% over the past year. For deeper insights into iPower’s financials and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, available for over 1,400 US stocks.
In other recent news, iPower Inc. has announced the establishment of a joint venture named United Package NV LLC, aimed at bolstering domestic manufacturing through its "Made in USA" module. This initiative is expected to enhance supply chain resilience by producing packaging materials within the United States. Additionally, iPower has initiated the production of a new equipment line for this venture, with expectations for it to be fully operational by the fourth quarter of 2025. CEO Lawrence Tan emphasized this move as a strategic effort to strengthen U.S. manufacturing and offer sustainable supply chain solutions.
In another development, iPower has undergone significant changes within its board of directors. Kevin Liles and Kevin Vassily have resigned, and Yue Guo has been appointed as an independent director. Guo, who brings extensive experience from the IT and internet industry, will also serve as Chair of the Nominating and Corporate Governance Committee. This leadership change marks a strategic shift in the company’s governance.
Furthermore, iPower’s new equipment line is part of its long-term strategy to support domestic manufacturing comprehensively. The company plans to optimize inventory management and expand access to sales channels through this venture. These recent developments highlight iPower’s ongoing efforts to enhance its operational resilience and service agility.
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