LONDON - VivoPower International PLC (NASDAQ:VVPR), a sustainable energy solutions company with a market capitalization of $5.59 million, has announced the initiation of Dogecoin mining operations through its subsidiary Caret LLC, which operates as Caret Digital. The newly launched mining activities are taking place at a hosting facility in Wisconsin, with the use of Antminer L9 rigs. According to InvestingPro data, the company currently shows a weak financial health score, operating with significant debt obligations.
Caret Digital's entry into the cryptocurrency mining market is part of its broader strategy to leverage the current profitability of Dogecoin mining. The company aims to generate significant revenues and free cash flow for the VivoPower group, which is crucial given its current negative EBITDA of -$7.47 million and concerning current 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 be interpreted as a forecast. InvestingPro subscribers have access to 15+ additional financial insights about VivoPower's current market position and growth potential.
The majority of the Dogecoin mined will not be held by the company but will instead be sold or forward-sold in alignment with market conditions. VivoPower intends to reinvest the cash flow from these operations into its Tembo e-LV business, which focuses on electric solutions for customised fleet applications, as part of its commitment to sustainability and the triple bottom line of people, profit, and the planet.
In addition to Dogecoin mining, Caret Digital is also developing up to 55MW of renewable-powered mining capacity, which will also support Litecoin mining. This expansion could potentially bring in annual revenues of up to $150 million from Dogecoin mining alone, but again, these projections are based on current market factors that are prone to fluctuation.
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 declining by 99.61% in the last twelve months, the company faces substantial challenges. Caret Digital, as a subsidiary, aligns with VivoPower's sustainability goals by integrating renewable power infrastructure with high-energy consumption applications like cryptocurrency mining. For detailed analysis of VivoPower's financial health and growth prospects, visit InvestingPro.
This announcement is based on a press release statement and contains forward-looking statements that involve risks and uncertainties. These statements reflect VivoPower's management's expectations and are subject to change. The company does not undertake any obligation to update these forward-looking statements in the event of new information or future developments.
In other recent news, Caret Digital has secured a significant $100m financial commitment from GGY. This funding will support Caret Digital's renewable energy strategy, specifically their Power-to-X (P2X) strategy. This strategy focuses on the development of renewable power capacity for high energy use cases such as cryptocurrency mining and AI-enabled data centers. This move aligns with the broader industry shift towards integrating sustainability into digital infrastructure development.
Caret Digital's initial phase of the P2X strategy includes the development of infrastructure for eco-friendly DOGE coin mining. The funds are also earmarked for working capital and general corporate purposes. Notably, this investment will not dilute VivoPower's shareholders as it will be injected at the subsidiary level.
This investment reflects a growing trend of capital flow 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. It's noteworthy to mention that this investment is subject to Caret Digital's listing on a Canadian stock exchange.
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