LONDON – VivoPower International PLC (NASDAQ: VVPR), a sustainable energy solutions company with a market capitalization of $5.59 million, announced the launch of mining operations through its subsidiary Caret LLC, which operates under the name Caret Digital. The newly launched mining operations take place at a hosting facility in Wisconsin, with the use of Antminer L9 rigs. According to InvestPro According to the data, the company currently has a low financial health score, operating with significant debts.
Caret Digital’s entry into the cryptocurrency mining market is part of its broader strategy to capitalize on the current profitability of Dogecoin mining. The company aims to generate significant revenue and free cash flow for the VivoPower Group, which is crucial given its current negative EBITDA of -$7.47 million and quick ratio of 0.33. Despite the potential for annual revenues of up to $25 million and cash EBITDA of up to $12 million, these figures are subject to change due to the volatile nature of cryptocurrency prices and operational costs, and should not not be interpreted as a forecast. InvestPro Subscribers have access to over 15 additional financial insights on VivoPower’s current market position and growth potential.
The majority of the mined Dogecoin will not be held by the company but will instead be sold or forwarded depending on market conditions. VivoPower intends to reinvest cash flow from these operations into its Tembo e-LV business, which focuses on electric solutions for customized fleet applications, as part of its commitment to sustainability and triple result: people, profit and the planet.
In addition to Dogecoin mining, Caret Digital is also developing up to 55 MW of renewable energy mining capacity, which will also support mining. This expansion could potentially generate annual revenues of up to $150 million from Dogecoin mining alone, but again, these projections are based on current market factors which are subject to fluctuations.
VivoPower, established in 2014 and listed on Nasdaq since 2016, operates internationally and is recognized as a B Corporation for its focus on sustainable energy solutions. With a high beta of 2.93 indicating significant market sensitivity and revenue down 99.61% over the last twelve months, the company faces significant challenges. Caret Digital, as a subsidiary, aligns with VivoPower’s sustainability goals by integrating renewable energy infrastructure with energy-intensive applications like cryptocurrency mining. For a detailed analysis of VivoPower’s financial health and growth prospects, visit InvestPro.
This announcement is based on a press release and contains forward-looking statements that involve risks and uncertainties. These statements reflect the expectations of VivoPower management and are subject to change. The Company undertakes no obligation to update these forward-looking statements as new information or future developments arise.
In addition, Caret Digital has obtained a significant financial commitment of $100 million from GGY. This funding will support Caret Digital’s renewable energy strategy, particularly its Power-to-X (P2X) strategy. This strategy focuses on developing renewable energy capabilities for energy-intensive use cases such as cryptocurrency mining and AI-driven data centers. This development is part of a broader industry shift towards integrating sustainability into digital infrastructure development.
The initial phase of Caret Digital’s P2X strategy includes the development of an infrastructure for environmentally friendly DOGE coin mining. The funds are also intended for working capital and general business purposes. In particular, this investment will not dilute VivoPower shareholders because it will be injected at the subsidiary level.
This investment reflects a growing trend of capital flows into sustainable and renewable energy projects, as observed by GEM Global Emerging Markets, which manages a diverse set of investment vehicles focused on emerging markets. Please note that this investment is subject to the listing of Caret Digital on a Canadian stock exchange.
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