- Caret Decimal Inc. is created in partnership with an experienced New York-based crypto-mining team and founding shareholder Caret
- Caret Decimal’s mission is to be the most efficient vertically integrated net zero powered digital asset mining company in the United States
- Caret will contribute an initial 206 MW DC of solar sites in Texas in exchange for $20m of equity
- Once fully operational, the mining sites are expected to have 4,398 petahash capacity
- Caret is reviewing potential Power-to-X use cases for its remaining 1.6GW of solar sites
VivoPower is pleased to announce that its wholly owned subsidiary, Caret LLC, which owns solar power project sites across the United States, has signed a letter of intent to launch Caret Decimal, a renewable powered digital asset mining business, consistent with its previously announced Power-to-X strategy.
It is expected that Caret Decimal will have the capability to mine Bitcoin, Ethereum and Litecoin, among others. Caret Decimal’s mission will be to become the most efficient vertically integrated green powered digital asset mining company in the United States with the lowest break even cost of mining. With sustainability being at its core, Caret Decimal will adhere to the principles of the newly-formed Bitcoin Mining Council with a view to seek membership once operational.
In connection with the transaction, Caret will be contributing an initial 206MW-DC of its ready-to-build solar power from sites in Cottle and Hardeman Counties, Texas. Valued at US$20m which is in line with comparable transactions, the sites will be built and commissioned for 100% renewable powered digital asset mining in exchange for equity in Caret Decimal. Once fully operational, these sites are expected to have 4,398 petahash capacity, a fleet of 33,000 mining rigs, revenue potential of approximately $270m per annum with an EBITDA margin of approximately 87% based on forecast Bitcoin prices.
VivoPower intends for financing to be raised at the Caret Decimal level to fund the build out of the mining sites, which will then be commissioned on a staged basis over a 24-month period. VivoPower’s expectation strategy is to ultimately spin off Caret’s digital asset mining business unit via an Initial Public Offering.
VivoPower’s Chief Executive Officer, Kevin Chin, commented: “As previously announced in August, we have been evaluating Power-to-X use cases for our solar projects, including cryptocurrency mining and green hydrogen. In the past months, we have seen increasing interest in our solar projects from a number of cryptocurrency mining groups seeking to secure their own captive source of renewable power. It is clear from our studies that digital asset mining presents the highest and best Power-to-X use case for our solar power sites. Furthermore, these sites are highly strategic, not just for mining, but for other power intensive blockchain computing applications.
“We are pleased to be contributing 206MW DC of solar sites in Texas in exchange for equity in Caret Decimal and are also now re-evaluating the potential power-to-x use cases for our other 1.6GW of solar projects in the US, including some that had been previously mothballed.
“We are also delighted to be partnering with a team that has a combined 26 years of digital asset mining experience. Our vision with the Caret Decimal digital asset mining business unit is to build the most efficient, 100% renewable powered digital asset mining company in the United States with the lowest digital asset mining cost and carbon footprint.”
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