Gryphon Digital Mining stock maintains Neutral tag from H.C. Wainwright

H.C. Wainwright has maintained a Neutral rating on Gryphon Digital Mining (NASDAQ: GRYP), following the company's release of June quarter figures after Wednesday's close and a conference call held Thursday morning. The firm's revenue for the quarter was in line with the analyst's expectations, which were based on three months of mining data.

The analyst highlighted Gryphon's experienced management team, noting their six-year history within the Bitcoin mining sector and emphasizing the importance of experience in generating returns on capital in this industry.

The firm also pointed out the potential of using public-share currency to consolidate energy assets, a strategy similar to that of two leading U.S.-based bitcoin mining companies.

During Thursday's conference call, Gryphon discussed reviewing 25 deals, including hosting and/or full-site acquisitions. However, the company has not yet finalized any deals, as none have met its target power cost of 4 cents/kWh, a key factor in maintaining profitability amid the increasing difficulty and competition in Bitcoin mining.

In other recent news, Gryphon's July operational update highlighted an improved Bitcoin mining efficiency and an estimated Bitcoin production of 21.4, equivalent to about $1.34 million. Gryphon also noted an 8% increase in its average monthly hashrate compared to last year.

In legal matters, Gryphon has been cleared of liability in a security breach incident involving Sphere 3D Corp. Sphere 3D withdrew its allegations, thus dismissing Gryphon from any responsibility based on these claims. However, Gryphon continues to pursue a counterclaim against Sphere for alleged breaches of their Master Service Agreement, seeking approximately $45 million in damages.

On the growth front, Gryphon is exploring avenues for expansion, with a focus on securing low-cost power for long-term viability in Bitcoin mining. The company's commitment to sustainability is evident in its 100% renewable energy certification and pursuit of a carbon-negative strategy.

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