Sustainable energy company VivoPower announced this week that its crypto subsidiary is venturing into mining Dogecoin and Litecoin.
In a statement, the company revealed that its owned entity, Caret Digital, will begin mining the two cryptocurrencies starting in January.
VivoPower, listed on Nasdaq as VVPR, projected that Caret Digital could generate annual revenues of $25 million and cash earnings before interest, taxes, depreciation, and amortization (EBITDA) of up to $12 million.
The company’s stock has surged over 50% in the past month. However, it experienced a nearly 14% decline in the last 24 hours after a Thursday spike on the news of mining Dogecoin and Litecoin, with current shares priced at $1.16.
“The implementation of this strategy will enable Caret Digital to capitalize on the current profitability of Dogecoin mining to generate revenues and free cash flows for VivoPower as a whole,” the announcement stated.
“Caret Digital does not plan to hold most of the mined Dogecoin, but intends to sell or forward sell them as appropriate,” it added.
The virtual currencies will be mined in renewable-powered hosting facilities located in Wisconsin and Oregon, as mentioned in the statement. Caret Digital will also focus on developing up to 55MW of its renewable-powered mining capacity for mining the assets.
VivoPower specializes in selling solar panels, electric vehicles, and batteries. It owns Caret Digital, which constructs solar farms.
Litecoin, ranked as the 25th largest digital currency, has a market cap of just over $10 billion. Dogecoin, on the other hand, is the seventh-largest, boasting a market cap of $63.7 billion.
Both cryptocurrencies are proof-of-work assets, necessitating energy-intensive mining processes to function.
With the surge in Bitcoin prices reaching new all-time highs, many alternative coins, including Dogecoin, have also seen an increase in value. Originally created as a joke 11 years ago, Dogecoin gained a strong following and a significant market cap after Elon Musk, the world’s richest person, began discussing the cryptocurrency on X (formerly known as Twitter).
American Bitcoin miner BIT Mining recently stated that it is more profitable to mine Dogecoin and Litecoin than to solely mine Bitcoin.
Translator: AI
