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Volato introduces aviation-based Bitcoin mining tech

Published 02/12/2024, 22:06
SOAR
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ATLANTA - Volato Group, Inc. (NYSE American: SOAR), a private aviation company with a market capitalization of $7.76 million, recently announced the development of a new technology that allows aircraft to mine cryptocurrency, specifically Bitcoin, during flight. This system, which is patent-pending, leverages excess electricity from normal flight operations and unused capacity, such as empty seats or cargo space, to generate digital assets without incurring additional costs or resource demands. According to InvestingPro data, the company has been experiencing rapid revenue growth of 97.25% over the last twelve months, though it faces challenges with cash management.

The technology utilizes specialized mining hardware optimized for high-altitude performance, providing greater efficiency than traditional ground-based mining setups. According to Volato's CEO Matt Liotta, this innovation is a step towards aircraft not only transporting people and goods but also creating value through advanced computing. InvestingPro analysis reveals 14 additional key insights about Volato's financial health and market position, available to subscribers.

Volato's initiative aligns with the aviation industry's push towards sustainability, as the revenue from Bitcoin mining could help fund the purchase of Sustainable Aviation Fuel (SAF) or carbon offset programs. This offers a way to boost profitability while lessening environmental impact.

The company is looking for partners within the aviation and cryptocurrency sectors to further refine and expand the technology's applications. The potential for this system extends across private, commercial, and cargo aviation operations, with a Total (EPA:TTEF) Addressable Market (TAM) of approximately 25,600 aircraft, indicating a significant opportunity for scalability.

This announcement comes as Bitcoin has seen substantial price appreciation over the past year, highlighting the potential for aviation to capitalize on underutilized resources and position itself at the forefront of cryptocurrency innovation.

Volato, listed on the NYSE American as SOAR, is known for its contributions to aviation software and on-demand flight access. The company's proprietary Mission Control software and Vaunt platform aim to improve efficiency and service quality in private aviation. Despite its innovative approach, InvestingPro data shows the stock has experienced significant volatility, with a 98.2% decline over the past year. Based on InvestingPro's Fair Value analysis, the stock currently appears undervalued, though investors should note the company's weak financial health score of 1.45 out of 5.

The details of this announcement are based on a press release statement from Volato Group, Inc.

In other recent news, Volato Group has seen a series of significant developments. The company announced the resignation of its Chief Commercial Officer, Nicholas Cooper, due to personal reasons. Additionally, Volato Group entered into an agreement with Sunpeak Holdings Corporation to settle outstanding claims, issuing shares of Volato's common stock in exchange for approximately $4.7 million in claims.

Volato Group has also expanded its share count from 81 million to 201 million, potentially facilitating fundraising activities, stock-based compensation, or future business acquisitions. The company secured a $4 million loan from TVT Capital Source LLC, due for full repayment by January 2025.

In terms of partnerships, Volato entered into a contract with flyExclusive, Inc., making flyExclusive the exclusive provider of certain aircraft management services. This agreement includes an option for flyExclusive to initiate a merger with a Volato subsidiary within the next twelve months.

Volato Group's compliance plan received approval from the NYSE American, ensuring its continued listing on the exchange. The company now has until December 2025 to comply with the exchange's listing standards regarding stockholders' equity.

Finally, Volato Group shareholders approved key corporate changes, including a reverse stock split, an increase in the number of authorized shares of Class A common stock, and provisions for stockholders to act by written consent. These are the recent developments for Volato Group.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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