In summary
- VivoPower announced that its subsidiary Caret Digital will begin Mining Dogecoin and Litecoin in January, projecting annual revenue of $25 million.
- The company will use renewable energy-powered facilities in Wisconsin and Oregon, with plans to develop 55MW of its own capacity.
- VivoPower shares rose 50% in the last month, although they fell 14% after the announcement of its entry into Cryptocurrency mining.
Sustainable energy company VivoPower announced this week that its crypto subsidiary will enter the world of Dogecoin and Litecoin mining.
An announcement from the company indicated that its owned Caret Digital would begin mining the two cryptocurrencies in January.
Nasdaq-listed VivoPower (VVPR) said Caret Digital could generate annual revenue of $25 million and cash earnings before interest, taxes, depreciation and amortization (EBITDA) of up to $12 million.
VivoPower shares are up more than 50% over the last month. However, in the last 24 hours, they have fallen almost 14% after a surge on Thursday on Dogecoin and Litecoin news, with shares currently trading at $1.16.
“Executing this strategy will allow Caret Digital to leverage the current profitability of Dogecoin mining to generate revenue and free cash flows for VivoPower as a group,” the announcement said.
“Caret Digital does not intend to hold the majority of the Dogecoin that is mined, but will sell or forward sell them, as appropriate,” he added.
The virtual currencies will be mined at hosting facilities powered by renewable energy in Wisconsin and Oregon, according to the statement. And Caret Digital will work to develop up to 55MW of its own mining capacity powered by renewable energy to be used in mining the assets.
VivoPower sells solar panels, electric cars and batteries. It owns Caret Digital, which installs solar farms.
Litecoin is the 25th largest digital currency, with a market capitalization of just over $10 billion. Dogecoin is the seventh largest, with a market capitalization of $63.7 billion.
Both cryptocurrencies share the same proof-of-work consensus mechanism, meaning they require energy-intensive mining operations to function.
While the price of Bitcoin has skyrocketed to new all-time highs, many altcoins have also risen in value, including Dogecoin. The asset was created as a joke 11 years ago, but developed a cult following—and a huge market cap—after the world’s richest man, Elon Musk, started talking about the cryptocurrency on X (formerly known as Twitter).
This week, American Bitcoin miner BIT Mining said that it is making more money mining Dogecoin and Litecoin than simply mining Bitcoin alone.
Edited by Andrew Hayward
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