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LAS VEGAS - Gryphon Digital Mining, Inc. (NASDAQ:GRYP), a bitcoin mining company known for its environmentally sustainable practices, recently announced a significant expansion of its operations. The company has entered into an agreement to acquire up to 2.9 megawatts (MW) of low-cost power mining operations, which are currently equipped with 59 PH/s of bitcoin mining machines. This move is expected to reduce Gryphon's power costs to approximately $0.01 per kilowatt hour (kWh).
The acquisition is part of Gryphon's broader strategy to evaluate and potentially secure over 500 MW of similar low-cost power opportunities. Gryphon's CEO, Rob Chang, expressed that this marks the beginning of a transformational process for the company, aiming to solidify its position as a leading low-cost operator in the bitcoin mining industry.
In August 2024, Gryphon reported an 8% increase in its monthly average hashrate compared to the previous year, reaching 883 PH/s. The company also improved its energy efficiency to 28.5 joules per terahash (J/T) and expects to have produced approximately 20 bitcoins for the month, with an estimated value of $1.2 million based on the average bitcoin price.
Additionally, Gryphon's bitcoin efficiency performance was noted at 22 BTC/EH for August, following a top third ranking among its peers in July. Since beginning operations in September 2021, the company has consistently ranked in the top quartile for efficiency.
Gryphon's commitment to sustainability is further emphasized by its operations in the Northeastern U.S., which are powered entirely by zero-carbon emitting hydro power, meeting both Scope 1 and Scope 2 emissions standards.
The company also welcomed the return of co-founder Dan Tolhurst to its Board of Directors. Tolhurst brings a wealth of experience from his previous roles at Netflix (NASDAQ:NFLX), Walt Disney (NYSE:DIS), Booz & Company, and the Bank of Montreal.
This operational update is based on a press release statement and has not been independently verified. Gryphon is scheduled to present at the H.C. Wainwright 26th Annual Global Investment Conference in New York from September 9th to 11th, and at the LD Micro Main Event XVII in Los Angeles from October 28th to 30th.
In other recent news, Gryphon Digital Mining has been making significant strides in its operations. The company recently expanded its board, appointing co-founder Daniel Tolhurst as a Class I director. Gryphon also reported a record quarterly hashrate of 899 petahashes per second (PH/s) in Q2 2024, marking a 20% increase year-on-year. The estimated bitcoin production was 21.4, equivalent to about $1.34 million.
Gryphon has also made an acquisition of a low-cost power bitcoin mining operation in Louisiana, which aligns with its environmental goals. This operation uses flare gas, a waste product from oil extraction, as an energy source. H.C. Wainwright maintained a Neutral rating on Gryphon, highlighting the company's experienced management team.
In legal matters, Gryphon has been cleared of liability in a security breach incident involving Sphere 3D Corp. However, Gryphon continues to pursue a counterclaim against Sphere for alleged breaches of their Master Service Agreement, seeking approximately $45 million in damages. These are the recent developments from Gryphon Digital Mining, a company committed to sustainability, evident in its 100% renewable energy certification and pursuit of a carbon-negative strategy.
InvestingPro Insights
As Gryphon Digital Mining, Inc. (NASDAQ:GRYP) takes significant strides to expand its bitcoin mining operations, the company's financial health and market performance are critical factors for investors to consider. According to InvestingPro data, Gryphon currently has a market capitalization of $24.35 million. Despite the company's growth in hashrate and commitment to sustainability, it operates with a significant debt burden and analysts do not anticipate the company will be profitable this year. This is reflected in the negative P/E ratio of -0.62, indicating that investors are currently not expecting earnings growth.
InvestingPro Tips suggest that the stock is currently in oversold territory, which could interest contrarian investors looking for a potential rebound. Additionally, with the stock having taken a considerable hit over the last week, short-term traders might be observing the price action for entry points, although the company's short-term obligations exceeding its liquid assets should be a point of caution.
For those seeking a deeper analysis, InvestingPro offers additional tips that could provide more insight into Gryphon's financial situation and market performance. There are 9 more InvestingPro Tips available for GRYP, which can be accessed through the dedicated InvestingPro page for Gryphon Digital Mining.
InvestingPro's fair value estimation for GRYP stands at $0.67, which is slightly higher than the previous close price of $0.60. This discrepancy may offer an opportunity for investors to consider the stock's potential value against market sentiment. With these insights, stakeholders can better gauge the risks and opportunities associated with Gryphon's operational expansion and market movements.
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