VivoPower’s subsidiary, Caret Digital, is set to launch Dogecoin mining operations, aiming to generate revenue and profitable cash flow starting in early January 2025. They have chosen renewable energy-powered hosting sites in Wisconsin and Oregon, planning to deploy an initial fleet of 1,000 Antminer L9s.
Caret Digital anticipates an impressive annual revenue potential of up to $25 million, with cash EBITDA reaching as high as $12 million. The strategy aligns with Caret Digital’s Power-to-X initiative, which focuses on optimizing renewable energy usage. As the economics of Dogecoin mining improve, the estimated payback period for the investment is now between 9 to 12 months, contingent on power costs and current market values.
The company has secured non-dilutive financing to acquire the Antminer L9s, which will be deployed in two phases: the initial deployment will involve 255 units in Wisconsin, followed by an additional 745 units in Oregon. Rather than holding onto the mined Dogecoin, Caret Digital plans to sell it or engage in forward selling to maximize liquidity.
Furthermore, Caret Digital is actively developing up to 55MW of its renewable-powered mining capacity for additional Dogecoin and Litecoin mining, which could potentially result in annual revenues of up to $150 million from Dogecoin alone.
The strategic spin-off of Caret Digital was approved by VivoPower shareholders during their Annual General Meeting in December 2023, which also included a special dividend plan. More updates concerning the spin-off and its implications for VivoPower shareholders will be communicated in due course.
VivoPower, founded in 2014 and public since 2016, is committed to delivering sustainable energy solutions, particularly in the electric vehicle sector. With operations across several countries, VivoPower aims to help clients transition towards net-zero carbon emissions.
In summary, Caret Digital’s upcoming Dogecoin mining operations highlight VivoPower’s dedication to sustainability while exploring profitable avenues within the cryptocurrency sphere. This innovative approach aligns with global shifts towards renewable energies and digital currencies, showcasing a forward-thinking strategy that promises economic and environmental benefits. It could pave the way for further investments and advancements in sustainable technologies.