VivoPower Stock Rockets On Launch of Dogecoin Mining Operations, Expansion Plans: Retail Celebrates

Shares of VivoPower jumped over 16% in mid-day trading on Thursday after the sustainable energy solutions company announced that its subsidiary, Caret Digital, will begin Dogecoin mining operations in Jan. 2025.

At the time of writing, Dogecoin was trading at $0.4421, up 9% in the last 24 hours. The cryptocurrency is up 384% this year so far. 

Caret Digital will use Vivopower’s Wisconsin and Oregon renewable-powered facilities to deploy up to 1,000 Antminer L9s – a mining machine specifically designed to mine coins using the Scrypt algorithm, such as Dogecoin and Litecoin – across both locations.

Unlike Bitcoin, which has a capped supply of 21 million coins, Dogecoin has no maximum supply limit. Initially, 100 billion coins were created, and approximately 5 billion new coins are mined each year. This inflationary model makes Dogecoin more accessible and cheaper than many other cryptocurrencies.

VIvoPower estimates that the project, based on Dogecoin prices at the time of the release, has the potential to generate annual revenues of up to $25 million and cash earnings before interest, tax, depreciation, and amortization (EBITDA) of up to US$12 million.

However, the company doesn’t plan to bring these gains onto its balance sheet. Instead, it plans to sell the mined Dogecoin and funnel the returns into its other subsidiary, Tembo e-LV, focused on developing and providing ruggedized electric utility vehicles. 

VivoPower also announced that Caret Digital is also developing a 55 megawatt (MW) renewable-powered mining facility that could generate up to $150 million in annual revenue. 

Retail sentiment around the stock flipped to a year-high in the ‘extremely bullish’ zone from ‘bearish’ a day ago, along with a surge in chatter to ‘extremely high.’

According to Stocktwits data, the message count on VivoPower’s ticker increased by over 160% in the last 24 hours. 

While users on the platform are upbeat about the company’s Dogecoin mining plans, they are also anticipating positive updates around the merger between Tembo and FAST, a Canada-based hydrogen company.

The $1.3 billion merger, announced in September, is aimed at advancing hydrogen vehicle conversions and technology.

Despite today’s gains, VivoPower’s stock is down nearly 14% year-to-date. 

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