VivoPower’s Caret Digital to develop up to 55MW of its solar farm portfolio for digital asset mining, including Dogecoin and Litecoin, with potential annual revenues of up to US$150m
VivoPower announced its Board's approval for subsidiary Caret Digital to develop up to 55MW of its solar farm portfolio for Dogecoin and Litecoin mining. This follows a proposal from a Canadian group seeking a reverse merger with Caret Digital. Based on current cryptocurrency prices and Antminer GPU costs, the project could generate annual revenues of approximately US$150 million. Capital expenditure will be funded through equity and debt raised by Caret Digital post-merger. VivoPower shareholders previously approved Caret Digital's spin-off and special dividend in December 2023.
VivoPower ha annunciato l'approvazione da parte del suo Consiglio per la sussidiaria Caret Digital di sviluppare fino a 55MW del suo portfolio di fattorie solari per il mining di Dogecoin e Litecoin. Questo segue una proposta di un gruppo canadese che cerca una fusione inversa con Caret Digital. Sulla base dei prezzi attuali delle criptovalute e dei costi delle GPU Antminer, il progetto potrebbe generare ricavi annuali di circa 150 milioni di dollari USA. Le spese in conto capitale saranno finanziate tramite capitale proprio e debito raccolto da Caret Digital dopo la fusione. Gli azionisti di VivoPower avevano precedentemente approvato lo scorporo di Caret Digital e il dividendo speciale a dicembre 2023.
VivoPower anunció la aprobación de su Junta para que la subsidiaria Caret Digital desarrolle hasta 55MW de su cartera de granjas solares para la minería de Dogecoin y Litecoin. Esto sigue a una propuesta de un grupo canadiense que busca una fusión inversa con Caret Digital. Basado en los precios actuales de las criptomonedas y los costos de las GPU Antminer, el proyecto podría generar ingresos anuales de aproximadamente 150 millones de dólares estadounidenses. El gasto de capital se financiará a través de capital y deuda recaudados por Caret Digital después de la fusión. Los accionistas de VivoPower aprobaron anteriormente el escisión de Caret Digital y el dividendo especial en diciembre de 2023.
비보파워(VivoPower)는 자회사 케어트 디지털(Caret Digital)이 55MW의 태양광 발전소 포트폴리오를 도지코인(Dogecoin) 및 라이트코인(Litecoin) 채굴을 위해 개발하는 것을 이사회에서 승인했다고 발표했습니다. 이는 케어트 디지털과의 역합병을 원하는 캐나다 그룹의 제안에 따른 것입니다. 현재 암호화폐 가격과 앤트마이너 GPU 비용을 기반으로 할 때, 이 프로젝트는 연간 약 1억 5천만 달러 미국의 수익을 창출할 수 있을 것으로 보입니다. 자본 지출은 머지 후 케어트 디지털에서 조달하는 주식과 부채를 통해 자금을 지원받을 것입니다. 비보파워의 주주들은 2023년 12월에 케어트 디지털의 스핀오프와 특별 배당금을 이전에 승인한 바 있습니다.
VivoPower a annoncé l'approbation par son Conseil d'administration de la filiale Caret Digital pour développer jusqu'à 55MW de son portefeuille de fermes solaires pour le minage de Dogecoin et Litecoin. Cela fait suite à une proposition d'un groupe canadien cherchant à réaliser une fusion inversée avec Caret Digital. En se basant sur les prix actuels des cryptomonnaies et des coûts des GPU Antminer, le projet pourrait générer des revenus annuels d'environ 150 millions de dollars US. Les dépenses en capital seront financées par des fonds propres et de la dette levée par Caret Digital après la fusion. Les actionnaires de VivoPower ont précédemment approuvé le spin-off de Caret Digital et le dividende spécial en décembre 2023.
VivoPower hat die Genehmigung seines Vorstandes bekannt gegeben, dass die Tochtergesellschaft Caret Digital bis zu 55MW ihres Solarpark-Portfolios für Dogecoin- und Litecoin-Mining entwickeln soll. Dies folgt einem Vorschlag einer kanadischen Gruppe, die eine umgekehrte Fusion mit Caret Digital anstrebt. Basierend auf den aktuellen Preisen für Kryptowährungen und den Kosten von Antminer-GPUs könnte das Projekt jährliche Einnahmen von etwa 150 Millionen US-Dollar generieren. Die Investitionsausgaben werden durch Eigen- und Fremdkapital finanziert, das von Caret Digital nach der Fusion aufgebracht wird. Die Aktionäre von VivoPower haben zuvor das Spin-off von Caret Digital und die Sonderdividende im Dezember 2023 genehmigt.
- Potential annual revenue of US$150 million from crypto mining operations
- 55MW solar farm portfolio development for digital asset mining
- Previously approved spin-off and special dividend for shareholders
- Significant capital expenditure required through equity and debt financing
- Dependency on volatile cryptocurrency prices for revenue projections
Insights
This strategic pivot into crypto mining represents a significant business transformation for VivoPower. The
- Crypto mining profitability is highly volatile, dependent on coin prices, network difficulty and energy costs
- The project requires significant capital expenditure for mining hardware and infrastructure
- Dogecoin and Litecoin have historically shown high price volatility
The reverse merger structure could provide faster access to capital markets, but execution risks remain high. The success heavily depends on crypto market conditions and operational efficiency of the mining operation.
Repurposing solar assets for crypto mining creates an interesting hybrid business model. The 55MW solar portfolio deployment provides a competitive advantage through controlled energy costs - important for mining profitability. This vertical integration strategy could prove valuable, especially during periods of high grid electricity prices.
However, the solar generation's intermittent nature means supplemental grid power may be needed for 24/7 mining operations, potentially affecting profit margins. The project's success will largely depend on optimizing the balance between solar utilization and mining equipment uptime.
Spin-off of Caret Digital previously approved by shareholders and subsequently confirmed in December 2023
Caret Digital approached with proposal to mine Dogecoin and Litecoin on its assets, ahead of a potential definitive agreement to enter into reverse merge spin-off with a Canadian counterparty
Economics of Dogecoin and Litecoin mining have improved markedly
Dogecoin and Litecoin mining use case consistent with Caret Digital’s previously announced Power-to-X strategy
LONDON, Nov. 14, 2024 (GLOBE NEWSWIRE) -- VivoPower (“the Company”) announced today that its Board of Directors has approved an execution plan for its wholly owned subsidiary, Caret Digital, to develop up to 55MW of its solar farm asset portfolio for Dogecoin and Litecoin mining purposes. This follows a proposal from a Canadian group seeking to enter into a reverse merger with Caret Digital, with the Company currently progressing negotiations to finalise a definitive agreement.
Based on current Dogecoin and Litecoin prices and Antminer GPU costs, there is potential for Caret Digital to generate annual revenues of approximately US
VivoPower shareholders had previously approved a spin-off of Caret Digital, in whole or part, as well as a special dividend during the Annual General Meeting held in December 2023.
The Company will provide further updates in relation to the progress of the spin-off via a reverse merger and the consequences for VivoPower and its stakeholders, including any special dividend shares for VivoPower shareholders.
About VivoPower
Established in 2014 and listed on Nasdaq since 2016, VivoPower is an award-winning global sustainable energy solutions B Corporation company focussed on electric solutions for off-road and on-road customised and ruggedised fleet applications as well as ancillary financing, charging, battery and microgrids solutions. VivoPower’s core purpose is to provide its customers with turnkey decarbonisation solutions that enable them to move toward net-zero carbon status. VivoPower has operations and personnel covering Australia, Canada, the Netherlands, the United Kingdom, the United States, the Philippines, and the United Arab Emirates.
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