VivoPower Subsidiary, Caret, Announces LOI to Launch Renewable Powered Digital Asset Mining Business
December 08 2021 - 9:13AM
VivoPower International PLC (Nasdaq: VVPR) (“VivoPower,” the
“Company) is pleased to announce that its wholly owned subsidiary,
Caret LLC (“Caret”), 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 be 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
principals 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 US$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.”
About VivoPower
VivoPower is a sustainable energy solutions
company focused on battery storage, electric solutions for
customized and ruggedized fleet applications, solar and critical
power technology and services. The Company's core purpose is to
provide its customers with turnkey decarbonization solutions that
enable them to move toward net zero carbon status. VivoPower is a
certified B Corporation with operations in Australia, Canada, the
Netherlands, the United Kingdom, the United States and the United
Arab Emirates.
About Caret LLC
Caret LLC is a wholly owned subsidiary of
VivoPower International PLC, a Nasdaq listed sustainable energy
solutions company. Caret currently owns 38 solar projects in the
United States totalling 1.8GW-DC.
Forward-Looking Statements
This communication includes certain statements
that may constitute “forward-looking statements” for purposes of
the U.S. federal securities laws. Forward-looking statements
include, but are not limited to, statements that refer to
projections, forecasts or other characterizations of future events
or circumstances, including any underlying assumptions. The words
“anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,”
“intends,” “may,” “might,” “plan,” “possible,” “potential,”
“predict,” “project,” “should,” “would” and similar expressions may
identify forward-looking statements, but the absence of these words
does not mean that a statement is not forward-looking.
Forward-looking statements may include, for example, statements
about the formation of Caret Decimal Inc., its expected performance
and the expected benefits of the events or transactions described
in this communication. These statements are based on VivoPower’s
management’s current expectations or beliefs and are subject to
risk, uncertainty and changes in circumstances. Actual results may
vary materially from those expressed or implied by the statements
herein due to changes in economic, business, competitive and/or
regulatory factors, and other risks and uncertainties affecting the
operation of VivoPower’s business. These risks, uncertainties and
contingencies include changes in business conditions, fluctuations
in customer demand, changes in accounting interpretations,
management of rapid growth, intensity of competition from other
providers of products and services, changes in general economic
conditions, geopolitical events and regulatory changes and other
factors set forth in VivoPower’s filings with the United States
Securities and Exchange Commission. The information set forth
herein should be read in light of such risks. VivoPower is under no
obligation to, and expressly disclaims any obligation to, update or
alter its forward-looking statements whether as a result of new
information, future events, changes in assumptions or
otherwise.
Shareholder Enquiries
shareholders@vivopower.com
Media Enquiries
vivopower@secnewgate.co.uk
Sophie Morello / Jessica Hodson Walker / Richard Bicknell
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