iPower Eliminates Major Cost Center and Receives $2.3 Million in Consideration as Part of Strategic Restructuring While Retaining Core Supply Chain Platform
Rhea-AI Summary
iPower (Nasdaq: IPW) completed a strategic restructuring on Feb 2, 2026, selling its subsidiary Global Product Marketing Inc. and receiving approximately $2.3 million in consideration while retaining its core supply chain, procurement, fulfillment and software platform.
The transaction is intended to eliminate a major operating cost center, reduce operating expenses, increase the company’s asset base by about $2.3 million, and preserve supply chain revenue opportunities with potential contribution margins up to approximately 15%.
Positive
- Received approximately $2.3 million in consideration
- Eliminated a major operating cost center to reduce expenses
- Retained core supply chain, procurement, fulfillment and software platform
- Preserves supply chain revenue opportunities with ~15% potential margins
Negative
- Sale may reduce direct e-commerce operating revenue tied to the divested unit
- Future supply chain revenue contribution is conditional and stated as approximate
News Market Reaction
On the day this news was published, IPW declined 8.53%, reflecting a notable negative market reaction. Argus tracked a peak move of +31.7% during that session. Argus tracked a trough of -24.6% from its starting point during tracking. Our momentum scanner triggered 18 alerts that day, indicating notable trading interest and price volatility. This price movement removed approximately $464K from the company's valuation, bringing the market cap to $5M at that time. Trading volume was exceptionally heavy at 17.8x the daily average, suggesting significant selling pressure.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Peer moves appear stock-specific: YJ was up 7.43%, MOGU up 24.74%, while MI and WNW were down 1.04% and 5.23%. Momentum scanner peers showed mixed directions, supporting a company-specific focus for IPW’s restructuring news.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 22 | Operations update | Positive | -0.2% | SuperSuite progress with Koala Story and new last‑mile logistics partners. |
| Jan 15 | Crypto strategy update | Positive | +2.7% | Market update on Digital Asset Treasury execution and initial token gains. |
| Jan 13 | Partnership visibility | Neutral | -9.8% | Highlighting channel partner role at Zyla event during CES. |
| Dec 29 | Crypto purchases | Positive | -17.3% | Completion of initial bitcoin and ether purchases for treasury strategy. |
| Dec 23 | Convertible financing | Positive | -11.4% | $30M convertible note facility to fund Digital Asset Treasury and operations. |
Recent history shows multiple positive or strategic announcements, especially around financing and digital assets, followed by negative price reactions, suggesting a pattern of market skepticism toward balance sheet and crypto-related initiatives.
Over the last several months, iPower announced a $30 million convertible note facility and initial Digital Asset Treasury deployments into bitcoin and ether, alongside operational updates to its SuperSuite platform and logistics network. These events often coincided with share price declines, particularly around crypto and financing news. Today’s restructuring, which removes a major cost center while retaining the core supply chain platform and adds about $2.3 million to assets, fits into this broader effort to improve efficiency, strengthen the balance sheet, and support its digital asset strategy.
Market Pulse Summary
The stock moved -8.5% in the session following this news. A negative reaction despite the restructuring would fit prior patterns where balance sheet and digital asset news sometimes coincided with selloffs. The company eliminated a major cost center while adding roughly $2.3 million to its asset base and targeting up to 15% contribution margins from preserved supply chain revenues. Yet recent filings detailing significant convertible note capacity and potential dilution may keep risk perceptions elevated and contribute to downside pressure.
Key Terms
digital asset treasury financial
bitcoin financial
ethereum financial
AI-generated analysis. Not financial advice.
RANCHO CUCAMONGA, Calif., Feb. 02, 2026 (GLOBE NEWSWIRE) -- iPower Inc. (Nasdaq: IPW) (“iPower” or the “Company”) today announced that it has eliminated a major operating cost center while receiving total consideration of approximately
Through this transaction, iPower has removed major costs associated with online sales operations by selling its subsidiary, Global Product Marketing Inc., while retaining iPower’s core supply chain, procurement, fulfillment and software infrastructure. The Company will continue to maintain its e-commerce capabilities through its internal operating experience and strategic partnerships, and also maintain ongoing commercial arrangements that provide continued access to future purchase orders and supply chain revenue opportunities, without bearing the previously associated operating expenses.
The transaction is expected to:
- Significantly reduce operating expenses by eliminating a major cost center;
- Increase iPower’s asset base by approximately
$2.3 million ; and - Preserve future supply chain revenue opportunities with positive contribution margins, which may reach up to approximately
15% under applicable commercial arrangements.
“This restructuring reflects a disciplined focus on efficiency and long-term value creation,” said Lawrence Tan, Chief Executive Officer of iPower. “By removing a high-cost operating component while retaining our supply chain platform and commercial relationships, we have improved our cost structure, strengthened our balance sheet, and positioned iPower to pursue sustainable, margin-positive revenue opportunities going forward.”
As a result of the improved cost structure and enhanced balance sheet following this restructuring, iPower noted that the Company is better positioned to prudently evaluate and support its previously announced digital asset initiatives, including its Digital Asset Treasury strategy. The Company emphasized that such initiatives remain subject to disciplined capital allocation, governance and risk management, and are intended to complement—rather than replace—its core operating focus.
Following completion of the transaction, iPower expects to operate with lower operating costs, improved operating efficiency and greater strategic flexibility as it continues to evaluate opportunities aligned with its core competencies.
The Company noted that this transaction represents one step in a broader effort to sharpen iPower’s operating focus, reduce structural costs, and maintain flexibility to pursue future growth opportunities.
About iPower Inc.
iPower Inc. (Nasdaq: IPW) is a technology- and data-driven online retailer and a provider of value-added e-commerce services for third-party products and brands. iPower operates a nationwide fulfillment network and is expanding infrastructure across software, logistics, and manufacturing, with an aim to also pursue initiatives in digital assets and blockchain integration. For more information, please visit www.meetipower.com.
Forward-Looking Statements
All statements other than statements of historical fact in this press release are forward-looking statements, including statements regarding the implementation of iPower’s digital asset strategy, the anticipated benefits of holding digital assets, and iPower’s future business plans in this sector. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that iPower believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. iPower undertakes no obligation to update forward-looking statements to reflect subsequent events or circumstances, or changes in its expectations, except as may be required by law. Although iPower believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure investors that such expectations will turn out to be correct, and iPower cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results and performance in iPower’s Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other SEC filings.
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FAQ
What did iPower (IPW) announce on February 2, 2026 about its business structure?
How will the IPW restructuring affect operating expenses and assets?
Will iPower (IPW) still have e-commerce and supply chain revenue after the sale?
What margin does iPower (IPW) expect from preserved supply chain revenue opportunities?
How does this transaction affect iPower’s digital asset initiatives and capital allocation?
