VivoPower’s subsidiary, Caret Digital, is set to initiate Dogecoin mining operations, aiming to achieve revenue and profitable cash flow by early January 2025. The company has chosen renewable-powered hosting facilities in Wisconsin and Oregon to kick off its operations, planning to initially deploy up to 1,000 Antminer L9s for mining.
The projected annual revenue from Dogecoin mining could reach as high as $25 million, with an anticipated cash EBITDA of around $12 million. This initiative aligns with Caret Digital’s Power-to-X strategy, focused on maximizing the use of renewable energy resources for optimal profitability. The economics surrounding Dogecoin mining have shown significant improvement, with a payback period estimated between nine and twelve months, depending on fluctuating power costs and market conditions.
Caret Digital is utilizing non-dilutive financing to facilitate the acquisition of the Antminer L9s, with plans to gradually deploy the equipment. The company intends to sell the mined Dogecoin rather than hold onto it, ensuring that the generated free cash flows are reinvested into VivoPower’s Tembo e-LV business to further its sustainability goals.
Additionally, Caret Digital is working on developing its own renewable-powered mining capacity of up to 55MW, which could potentially generate revenues of up to $150 million annually. This expansion comes on the heels of shareholder approval for a spin-off of Caret Digital and the potential for a special dividend, as discussed during the December 2023 Annual General Meeting.
VivoPower, founded in 2014 and traded on Nasdaq since 2016, is dedicated to providing sustainable energy solutions and is committed to fostering a cleaner environment through innovative technologies.
This shift towards Dogecoin mining not only represents an exciting new revenue stream for VivoPower but also exemplifies the company’s commitment to sustainable practices. By prioritizing renewable energy and focusing on profitable ventures, VivoPower aims to empower its stakeholders and contribute positively to the global push toward net-zero carbon emissions.
Summary: VivoPower’s Caret Digital will begin Dogecoin mining in early January 2025, utilizing renewable energy sources, with projected annual revenues of up to $25 million. The initiative aims to generate cash flow for reinvestment while enhancing profitability through sustainable practices.