Sustainable energy firm VivoPower is making headlines with its decision to venture into cryptocurrency mining. Its subsidiary, Caret Digital, will begin mining Dogecoin and Litecoin starting January 2025, marking a strategic move into the rapidly evolving crypto space.
Nasdaq-listed VivoPower (VVPR) anticipates significant financial benefits from this venture. The company projects annual revenues of $25 million and EBITDA of up to $12 million from Caret Digital’s operations. Despite a recent 14% dip in its stock price, attributed to a Thursday surge on the news, VivoPower’s shares have gained over 50% in the past month.
Caret Digital plans to utilize renewable-powered hosting facilities in Wisconsin and Oregon, aiming to establish up to 55 MW of its own green energy mining capacity. The company’s focus is on selling or forward-selling the mined Dogecoin, rather than holding it, to optimize cash flow for VivoPower as a group.
This move aligns with VivoPower’s broader mission as a sustainable energy company. Known for selling solar panels, electric vehicles, and batteries, VivoPower’s clean energy ethos complements the energy-intensive demands of proof-of-work cryptocurrencies like Dogecoin and Litecoin.
Dogecoin, currently the seventh-largest cryptocurrency with a market cap of $63.7 billion, and Litecoin, ranked 25th with a $10 billion market cap, have experienced rising profitability following Bitcoin’s recent climb to new record highs. Initially created as a parody, Dogecoin has gained a loyal community, bolstered in part by endorsements from prominent figures such as Elon Musk.
Notably, VivoPower’s strategy mirrors broader industry trends. Earlier this week, Bitcoin miner BIT Mining reported higher profits from mining Dogecoin and Litecoin compared to Bitcoin. As altcoins like Dogecoin rise in value alongside Bitcoin, VivoPower’s renewable energy-powered approach positions it at the forefront of sustainable crypto mining innovation.
With its focus on green energy and strategic market positioning, VivoPower is poised to make a significant impact on the evolving crypto-mining landscape.