iPower Inc. (NASDAQ:IPW) experienced a sharp sell-off, with shares falling 28.9% on Monday, following the company's announcement that it is pursuing a strategic expansion into crypto infrastructure hardware distribution.
The hydroponics and gardening equipment supplier said it had entered a non-binding Memorandum of Understanding, or MOU, with Nanopulse Technology Ltd., a developer of specialized hardware for the crypto and digital asset sector. Under the proposed arrangement, iPower plans to use its U.S.-based supply chain and e-commerce capabilities to bring crypto infrastructure hardware to market.
The company made clear that the initiative is at an exploratory stage. Execution will require the parties to sign definitive agreements and for iPower to complete compliance and due diligence reviews. The MOU outlines multi-layered economics, including expected near-term revenue from hardware sales as well as the potential for ongoing commission-based participation in future income generated by infrastructure hardware that iPower distributes.
In describing the rationale for the move, iPower’s chief executive underscored the operational gap the company hopes to fill. "Crypto networks increasingly depend on physical infrastructure, but most projects are not built to efficiently sell, ship and support hardware at scale," said Lawrence Tan, Chief Executive Officer of iPower. "This initiative positions iPower as the execution layer that bridges crypto-native innovation with real-world distribution, operational discipline and compliance."
The MOU also contemplates a separate line of exploration around iPower potentially participating as a U.S.-based validator or node operator. Any such role would be examined under separate technical, legal and commercial agreements and remains purely exploratory, the company said, to be governed by standalone contracts if pursued.
iPower emphasized that the proposal focuses on hardware distribution and infrastructure enablement rather than financial services. The company stated it will not provide investment advice, custody user digital assets, or engage in digital asset trading activities.
Management characterized the collaboration as a repeatable infrastructure-enablement model intended to pair crypto-native innovation with tangible execution and logistics capabilities. The ultimate implementation, timing and financial outcomes depend on completion of the specified definitive agreements and regulatory and compliance checks.
Sector context - The development intersects retail product distribution, e-commerce logistics and the crypto infrastructure hardware market. Market reaction to the announcement was immediate, reflected in the quoted share decline.