VivoPower’s subsidiary, Caret Digital, is set to initiate its Dogecoin mining operations, which are expected to generate revenue and profitable cash flow starting in early January 2025. The company has selected renewable-powered hosting facilities located in Wisconsin and Oregon, aiming to deploy an initial fleet comprising 1,000 Antminer L9 miners.
Caret Digital anticipates that these mining operations could yield annual revenues of up to $25 million, with a cash Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of around $12 million based on current Dogecoin prices. The strategy aligns with Caret Digital’s Power-to-X framework, which focuses on maximizing the use of renewable energy.
Notably, the economic prospects for Dogecoin mining have significantly improved, with a projected payback period between 9 to 12 months, influenced by current market values and power costs. Additionally, Caret Digital has obtained non-dilutive financing to support the acquisition of Antminer L9 miners.
To further enhance its operations, Caret Digital is also working towards developing up to 55 megawatts (MW) of its own renewable-powered mining capacity. This additional capacity could potentially allow the firm to generate up to $150 million in annual revenues from Dogecoin mining alone.
Furthermore, shareholders of VivoPower had previously approved the full or partial spin-off of Caret Digital during the Annual General Meeting held in December 2023. The company intends to provide updates on this spin-off process and any special dividend shares for its stakeholders.
In conclusion, the steps being taken by Caret Digital not only reflect a commitment to leveraging renewable energy sources but also showcase a proactive approach to diversifying revenue streams through cryptocurrency, which could enhance the overall sustainability of VivoPower’s operations and contribute positively to its long-term growth.
This news highlights the growing intersection of renewable energy and cryptocurrency mining, ushering in potential economic benefits while reinforcing environmental commitments.