- In January, Caret Digital, a subsidiary of clean energy provider VivoPower, will begin mining Dogecoin and Litecoin.
VivoPower, a sustainable energy firm, said this week that its cryptocurrency subsidiary is entering the Dogecoin and Litecoin mining space.
The company said that its subsidiary, Caret Digital, would begin mining the two cryptocurrencies in January.
According to VivoPower (VVPR), a company listed on the Nasdaq, Caret Digital could generate $25 million in sales annually and up to $12 million in cash earnings before interest, taxes, depreciation, and amortization (EBITDA).
Over the past month, VivoPower’s stock has increased by more than 50%. However, after a Thursday increase on the Dogecoin and Litecoin news, it has dropped by almost 14% in the last day, with shares now trading at $1.16.
By implementing this plan, Caret Digital will be able to capitalize on Dogecoin mining’s present profitability and provide income and free cash flows for VivoPower as a whole.
Caret Digital will sell or forward sell Dogecoin as needed; it does not plan to retain the majority of mined Dogecoin.
According to the announcement, the virtual currency will be mined in hosting facilities in Wisconsin and Oregon that are powered by renewable energy. Additionally, in order to mine the assets, Caret Digital will construct up to 55MW of its own renewable-powered mining capacity.
Batteries, electric vehicles, and solar panels are all sold by VivoPower. Caret Digital, which installs solar farms, is owned by it.
With a market valuation of just over $10 billion, Litecoin is the 25th largest digital currency. Dogecoin has a $63.7 billion market capitalization, making it the ninth largest.
Since both cryptocurrencies require energy-intensive mining processes to function, they are proof-of-work assets.
Many cryptocurrencies, like Dogecoin, have seen increases in value as the price of Bitcoin has surged to all-time highs. The asset was initially conceived as a joke eleven years ago today, but after Elon Musk, the richest man in the world, began discussing the cryptocurrency on X (previously known as Twitter), it gained a cult following and a sizable market capitalization.
According to BIT Mining, an American Bitcoin miner, it is now earning more money mining Dogecoin and Litecoin than it is minting Bitcoin alone.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
