Digital Power Corporation announced that it has launched a new business division dedicated to the mining of cryptocurrencies. The Company’s initial strategy is to mine the top ten cryptocurrencies including Bitcoin (“BTC”), Ethereum (“ETH”), Bitcoin Cash (“BCH”), Litecoin (“LTC”), Dash (“Dash”) and Monero (“XMR”). To lead the launch and development of the cryptocurrency mining endeavors, the Company has entered a management services agreement with IMG Networks (“IMG”) of San Diego to establish a series of digital mining farms worldwide with a goal of developing a network of over 10,000 digital mining machines. Digital Power emphasized that its decision to pursue digital mining of cryptocurrencies and establish the new business division was reached through a series of evaluations, research and actions undertaken by the Company and by PoW Digital Mining, the independent consultants contracted by the Company to lead its development of its cryptocurrency endeavors, as previously announced on August 10, 2017. Since September 2017, Digital Power and PoW Digital Mining tested an array of digital mining equipment in its efforts to identify initiatives the Company should pursue and lay the basis of their priority. With the Company’s recent decision to create a cryptocurrency mining division, the testing complex has been transitioned to the commercial generation of revenue. Given the recent approval of Bitcoin to be publicly-traded over two U.S. national exchanges (Chicago Board Options Exchange (“CBOE”) Futures Exchange (“CFE”) and Chicago Mercantile Exchange) and other advances with respect to government regulation and more general acceptance of cryptocurrency by commercial businesses, the Company believes these circumstances bolster the strength of its internal forecasts and enhance the viability of its new business development strategy. The Company believes that it has a competitive advantage based on the following factors: Over forty-eight (48) years of developing and manufacturing advanced power solutions to some of the most iconic businesses on the Fortune 500. The ability to leverage its existing infrastructure, capacity and excess space at the various manufacturing facilities of Digital Power and its subsidiaries. These facilities comply with applicable governmental or military requirements with agency-issued certificates corroborating these facts. Moreover, each facility has readily available military-grade power solutions to operate digital mining operations. The Company believes its ability to exploit the inherent attributes of its facilities in Northern and Southern California, Connecticut and Great Britain will reduce initial costs and help shorten the time requirement to establish digital mining operations at these locations. The thirteen (13) years of technical and practical experience of IMG in Information Technology such as server administration, network engineering or, in this case, digital mining farms.