VivoPower’s subsidiary, Caret Digital, is set to launch its Dogecoin mining operations, aiming to generate revenue and positive cash flow by early January 2025. The company has chosen two renewable energy-powered hosting facilities located in Wisconsin and Oregon. Initially, it plans to deploy 255 Antminer L9 miners in Wisconsin, followed by an additional 745 miners in Oregon.
According to projections based on current Dogecoin market prices, Caret Digital anticipates an annual revenue potential of up to $25 million, along with cash EBITDA of approximately $12 million. This approach aligns with Caret Digital’s Power-to-X strategy, which focuses on optimizing renewable power usage. The economics surrounding Dogecoin mining have also improved, with an estimated payback period ranging from 9 to 12 months depending on power costs.
Caret Digital has secured non-dilutive financing to facilitate the acquisition of the Antminer L9s and will implement the mining operations in stages. Notably, the mined Dogecoin is not intended for long-term holding; instead, Caret Digital plans to sell or forward-sell the cryptocurrency to generate immediate revenue. Moreover, any free cash flow generated will be reinvested into VivoPower’s Tembo e-LV business.
Caret Digital is also committed to establishing a 55MW renewable-powered mining facility for both Dogecoin and Litecoin, which could potentially yield revenues of up to $150 million annually. Shareholders of VivoPower have previously approved a spin-off of Caret Digital and a special dividend during the Annual General Meeting held in December 2023.
VivoPower has built a solid reputation as a global sustainable energy solutions company, focused on providing customers with comprehensive decarbonization solutions. With operations spanning multiple countries, VivoPower continues to make strides toward achieving net-zero carbon status.
In summary, Caret Digital’s ambitious venture into Dogecoin mining not only signifies a strategic move toward profitability but also emphasizes the importance of sustainable energy practices in the rapidly evolving cryptocurrency market. This initiative reflects a positive outlook and the potential for significant economic benefits both for the company and its stakeholders. As the cryptocurrency landscape continues to grow, Caret Digital’s efforts could serve as a model for integrating sustainable practices within the digital economy.