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 with an estimated payback period of 6-8 months (depending on power cost)
Dogecoin mining use case consistent with Caret Digital’s previously announced Power-to-X strategy
VivoPower 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$150 million from Dogecoin mining. This would involve estimated capital expenditure of up to $162 million, which would be funded through a combination of equity and debt to be raised independently by Caret Digital following any reverse merger spin-off.
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.
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