VivoPower is pleased to announce that its wholly-owned subsidiary, Caret LLC, which owns solar power project sites across the US, 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 US with the lowest breakeven cost of mining. With sustainability at its core, Caret Decimal will adhere to the principles of the newly-formed Bitcoin Mining Council, with a view to seeking membership once operational.
In connection with the transaction, Caret will be contributing an initial 206 MW-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 IPO.
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 several 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 206 MW-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 1.6 GW 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 US with the lowest digital asset mining cost and carbon footprint.”
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