LONDON – VivoPower International PLC (NASDAQ:VVPR), a $5.59M market cap sustainable energy solutions company, has announced the start of mining operations through its subsidiary Caret LLC, doing business as Caret Digital. The newly launched mining activities take place in a hosting facility in Wisconsin, using Antminer L9 equipment. According to InvestingPro data, the company currently shows a poor financial health rating, operating with significant debt obligations.
Caret Digital’s entry into the cryptocurrency mining market is part of its broader strategy to increase 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 the current negative EBITDA of -$7.47 million and a worrying 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 operating costs and should not be construed as a prediction. InvestingPro subscribers have access to 15+ additional financial insights on VivoPower’s current market position and growth potential.
Most of the mined Dogecoin will not be held by the company, but will instead be sold or pre-sold according to 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 the triple bottom line of people, profit and 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 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 fluctuations.
VivoPower, founded in 2014 and listed on the Nasdaq stock exchange 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 a 99.61% drop in revenue over the past 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 such as cryptocurrency mining. For a detailed analysis of VivoPower’s financial health and growth prospects, visit InvestingPro.
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’s management and are subject to change. The Company undertakes no 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 $100 million financial commitment from GGY. This funding will support Caret Digital’s renewable energy strategy, specifically their Power-to-X (P2X) strategy. This strategy is aimed at developing renewable energy capacity for high energy use cases such as cryptocurrency mining and AI-enabled data centers. The move aligns with a wider industry shift towards integrating sustainability into digital infrastructure development.
Caret Digital’s initial phase of the P2X strategy involves developing an infrastructure for environmentally friendly mining of DOGE coins. Funds are also earmarked for working capital and general corporate purposes. Namely, this investment will not dilute the shareholders of VivoPower as it will be injected at the subsidiary level.
This investment reflects a growing trend of capital flows into sustainable and renewable energy projects, as noted by GEM Global Emerging Markets, which manages a diverse set of investment drivers focused on emerging markets. It is important to mention that this investment is subject to the listing of Caret Digital on the Canadian stock exchange.
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