VivoPower’s Caret Digital has Commenced Dogecoin Mining Operations in Wisconsin

VivoPower International (Nasdaq: VVPR) announced that its subsidiary, Caret Digital, has started Dogecoin mining operations in Wisconsin using Antminer L9 rigs.

VivoPower's (Nasdaq: VVPR) subsidiary, Caret Digital, has officially commenced Dogecoin mining operations at its Wisconsin hosting facility, utilising an initial fleet of Antminer L9 rigs. The move marks a strategic pivot for the company, aligning with its broader Power-to-X strategy.

According to the announcement on Thursday, the initiative is expected to generate annual revenues of up to $25 million for VivoPower, with potential cash EBITDA of up to $12 million. However, these figures are subject to substantial variation given the volatility of both price and cost variables.

The company does not intend to hold most of the Dogecoin that is mined but will sell or forward sell them as appropriate. VivoPower plans to use any free cashflow generated from the Dogecoin mining operations to reinvest into its Tembo e-LV business.

At the same time, Caret Digital will continue to work on developing up to 55MW of its own renewable-powered mining capacity to be used for Dogecoin and Litecoin mining, as previously announced. With a 55MW facility, Caret Digital would be able to generate revenues of up to $150 million per annum from Dogecoin mining.

"Execution of this strategy will allow Caret Digital to take advantage of the current profitability of Dogecoin mining to generate revenues and free cashflows for VivoPower as a group,” VivoPower stated in the announcement.

"Caret Digital does not intend to hold most of the Dogecoin that is mined but will sell or forward sell them as appropriate. Based on current Dogecoin prices and Antminer GPU costs, there is potential for Caret Digital to generate annual revenues of up to US$25m and cash EBITDA of up to $12m (although this is subject to signification variation given the volatility of both price and cost variables, and should not be taken as a forecast)."

The announcement comes as several companies are pivoting toward cryptocurrency mining to generate additional cash flow or as part of their broader Web3 strategies. Among them, Compute North recently announced plans to build a 250MW crypto mining facility in Texas.

Moreover, CleanSpark (Nasdaq: CLSK) has been expanding its mining operations and recently acquired 10,000 Antminer S19J Pro units from Bitmain. The company also announced plans to build a 50MW crypto mining facility in Georgia.