VivoPower’s subsidiary, Caret Digital, is set to launch Dogecoin mining operations, anticipating revenue and profitable cash flow generation starting in early January 2025. The company has selected renewable-powered facilities in Wisconsin and Oregon for its operations, where it plans to deploy an initial fleet of 1,000 Antminer L9s.
With current market conditions, Caret Digital projects an annual revenue potential of up to $25 million and cash earnings before interest, taxes, depreciation, and amortization (EBITDA) of around $12 million from Dogecoin mining. This initiative supports Caret Digital’s Power-to-X strategy, which aims to maximize the benefits of renewable energy capacity.
Operational profitability in Dogecoin mining has notably improved, with a projected payback period of 9 to 12 months, depending on electricity costs and prevailing market values. Caret Digital will not retain most of the mined Dogecoin but will sell or forward-sell it as needed. Excess cash generated from these operations will be reinvested into VivoPower’s Tembo e-LV business, further bolstering its commitment to environmental sustainability.
In addition to these operations, Caret Digital is also working on developing up to 55 megawatts (MW) of its renewable-powered mining capacity, which could significantly increase its revenue potential to around $150 million per year from Dogecoin mining alone.
Previously, VivoPower shareholders approved a potential spin-off of Caret Digital and the distribution of a special dividend during their Annual General Meeting in December 2023. Further updates regarding the spin-off process and its implications for VivoPower stakeholders will be provided.
VivoPower, established in 2014 and publicly traded on Nasdaq since 2016, is recognized as a global leader in sustainable energy solutions, focusing on custom electric applications for various fleet needs. The company’s mission revolves around providing complete decarbonization solutions to aid customers in achieving net-zero carbon emissions.
This strategic move into cryptocurrency mining illustrates VivoPower’s innovative approach to leveraging renewable energy, potentially paving the way for increased sustainable revenue streams and fostering a greener digital economy.
Summary: VivoPower’s Caret Digital plans to start Dogecoin mining operations in January 2025, with expected annual revenues of up to $25 million by utilizing renewable energy in Wisconsin and Oregon. The initiative aligns with VivoPower’s sustainable goals and may further enhance its growth through strategic reinvestments.