VivoPower announces strategic refocus on Power-to-X strategy

VivoPower (VVPR) International announces a refocusing of its global resources to its Power-to-X strategy. This strategy was first enunciated by VivoPower in 2021 and involves vertical integration by energy-intensive industries to control and/or own the power infrastructure and land. Over the last several years, digital asset mining has been amongst the highest and best return on investment uses cases for energy, which is what Caret Digital has been focused on. However, in the last 2 years, this has been surpassed by the needs and materially better returns from computational AI requirements. VivoPower’s “Power-to-X” strategy has been underpinned by two operating platforms developed over several years: Caret Digital and Vivo Federation. Together, these platforms have validated VivoPower’s thesis that control of power, land, and sovereign-grade counterparties is the critical bottleneck in next-generation compute infrastructure. As a consequence, the Company is now prioritizing the exponentially higher-margin AI Computational market. VivoPower is focusing on “non-crowded” sovereign markets-including the UAE, Saudi Arabia, Southeast Asia, and select EU hubs-where power grid access is the primary bottleneck for AI Hyperscalers and where VivoPower has entrenched relationships. The Company is in final stage negotiations for transformational and accretive acquisitions of energized data centers and/or strategic power land to secure its position as a “Sovereign AI Infrastructure Landlord.” Reflecting the unprecedented surge in demand for low-cost, sustainable power from AI Hyperscalers, VivoPower is reviewing its legacy 682MW U.S. solar development portfolio. Previously mothballed, these sites are now being re-evaluated for immediate monetization. The Company intends to divest these assets to recycle capital into its high-growth Sovereign AI hubs in its focus markets, where the returns on energy-ready land have reached unprecedented premiums.