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Gryphon Digital Mining Highlights Energy Strategy Success With November Operational Results

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Gryphon Digital Mining (NASDAQ:GRYP) has announced key developments in its energy strategy along with November 2024 operational results. The company signed an agreement to acquire natural gas assets in British Columbia with 100 MW initial capacity, scalable to 1 GW, and appointed Eric Gallie as SVP of Energy Strategy. These moves are expected to reduce power costs by over 50% from $0.0605/kWh to under $0.03/kWh.

November operational highlights include: 17.26439 BTC mined generating revenues of $1,487,580, with total energy costs of $1,160,935 and a margin of $326,647 (21.96%). The company reported cash on hand of $545,000 and 18.367 BTC valued at $1.78m as of November 30, 2024.

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Positive

  • Secured natural gas assets with 5+ Tcf resources and 140 mmcf/d infrastructure capacity
  • Expected power cost reduction from $0.0605/kWh to under $0.03/kWh (>50% savings)
  • Scalable power generation from 100 MW to 1 GW
  • 21.96% profit margin on Bitcoin mining operations in November

Negative

  • High current energy costs at $0.0605/kWh impacting profitability
  • Relatively low cash position of $545,000 as of November 30, 2024
  • Bitcoin production of 17.26439 BTC in November

News Market Reaction – GRYP

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Signed definitive agreement for natural gas assets, securing low-cost power of 100 MW, expandable and scalable to 1 GW

Appointed energy industry veteran Eric Gallie as SVP of Energy Strategy

LAS VEGAS, NV / ACCESSWIRE / December 13, 2024 / Gryphon Digital Mining, Inc. (NASDAQ:GRYP) ("Gryphon" or the "Company"), an innovative venture in the bitcoin and AI space dedicated to helping bring digital assets to the market, has released its unaudited operational update for November 2024.

Steve Gutterman, CEO of Gryphon Digital Mining commented, "We're pleased to release November results and share that December has been a pivotal month for our energy strategy. We have executed what could be a transformative agreement to acquire natural gas assets in British Columbia that could produce low-cost power of 100 MW - 1 GW, and appointed Eric Gallie, a recognized energy industry leader, to coordinate our power initiatives. Eric brings 18 years of energy sector expertise, including managing $1.5 billion in upstream and integrated oil & gas portfolios. We anticipate that his appointment, coupled with our natural gas asset acquisition, positions us to reduce our power costs by more than 50% from current levels of $0.0605/kWh to well under $0.03/kWh. We believe that these strategic moves will fundamentally reshape our energy economics as we scale to meet the growing power demands of both digital mining and AI infrastructure."

Energy Strategy Highlights

Natural Gas Asset Acquisition (December 10, 2024)

  • 5+ Tcf contingent natural gas resources

  • Initial 100 MW generation capacity

  • Expected Scalability to 1 GW

  • Projected power cost under $0.03/kWh

  • Located in Northeast British Columbia

  • 140 mmcf/d infrastructure capacity at 100% working interest

Appointment of Eric Gallie as SVP of Energy Strategy (December 12, 2024)

  • Joins Gryphon from an energy focused hedge fund.

  • 18-year career spans significant roles in energy finance and operations, including managing a $1.5 billion upstream and integrated oil & gas investment portfolio at Luminus Capital Management.

  • Previously, as CFO and Director at Distinction Energy, he successfully guided the company through a complex restructuring process and led due diligence on a $335 million asset acquisition.

  • Experience also includes positions at Citadel LLC's Surveyor Capital and RBC Capital Markets, where he specialized in natural gas markets and supply analysis.

November Mining Update

  • Mined BTC: 17.26439; Total Est. Revenues: $1,487,580 Avg. Price of Mined BTC: $86,165

  • Total Energy Costs: $1,160,935; Avg. Cost of Mined BTC: $67,244; Total Energy consumed:19,193,491 kWh

  • Cost per kWh to generate BTC: $0.0605; Margin: $326,647 (Rev less COGS); Margin %: 21.96%

  • Est. Cash on hand at 11/30/24: $545,000; Est. BTC on hand at 11/30/24: 18.367 BTC valued at $1.78m

About Gryphon Digital Mining
Gryphon Digital Mining, Inc. is an innovative venture in the bitcoin and AI space dedicated to helping bring digital assets to the market. With a talented leadership team coming from globally recognized brands, Gryphon has assembled thought leaders to improve digital asset network infrastructure. More information is available on https://gryphondigitalmining.com/

Cautionary Statements Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. Forward-looking statements are typically identified by words such as "plan," "believe," "expect," "anticipate," "intend," "outlook," "estimate," "forecast," "project," "continue," "could," "may," "might," "possible," "potential," "predict," "should," "would" and other similar words and expressions, 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 Company's ability to close the natural gas acquisition; the ability of the assets to be acquired to produce energy at both the cost and the volume anticipated; plans to expand the Company's business to include AI and high performance computing; the future financial performance of the Company; changes in the Company's strategy and future operations; financial position; estimated revenues and losses; projected costs; prospects, plans and objectives of management; and future acquisition activity.

The forward-looking statements are based on management's current expectations and assumptions about future events and financial results and are based on currently available information as to the outcome and timing of future events. The forward-looking statements speak only as of the date of this press release or as of the date they are made. Except as otherwise required by applicable law, Gryphon disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release. Gryphon cautions you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Gryphon. In addition, Gryphon cautions you that the forward-looking statements contained in this press release are subject to the risks set forth in our filings with the Securities and Exchange Commission (the "SEC"), including the section titled "Risk Factors" in the Annual Report on Form 10-K filed with the SEC by Gryphon on April 1, 2024.

INVESTOR CONTACT:
James Carbonara
IR
james@haydenir.com
9173401339

SOURCE: Gryphon Digital Mining



View the original press release on accesswire.com

FAQ

What is Gryphon Digital Mining's (GRYP) expected power cost reduction after the natural gas acquisition?

Gryphon expects to reduce power costs by more than 50%, from $0.0605/kWh to under $0.03/kWh following the natural gas assets acquisition in British Columbia.

How much Bitcoin did GRYP mine in November 2024?

Gryphon Digital Mining mined 17.26439 BTC in November 2024, generating estimated revenues of $1,487,580.

What is the capacity of GRYP's new natural gas assets in British Columbia?

The natural gas assets have an initial generation capacity of 100 MW, scalable to 1 GW, with 140 mmcf/d infrastructure capacity at 100% working interest.

What was Gryphon Digital Mining's (GRYP) profit margin for November 2024?

GRYP achieved a profit margin of 21.96% in November 2024, with revenues of $1,487,580 and a margin of $326,647.

How much Bitcoin and cash did GRYP hold as of November 30, 2024?

As of November 30, 2024, GRYP held 18.367 BTC valued at $1.78m and approximately $545,000 in cash.