Gryphon Digital Mining (GRYP, Financial) has announced a definitive merger agreement with American Bitcoin. The merger is structured as a stock-for-stock transaction, with the combined entity set to operate under the American Bitcoin name and governance. Once finalized, the merged company will be listed on Nasdaq with the ticker “ABTC.” American Bitcoin, co-founded by Eric Trump and Hut8 Corp., aims to become a leading Bitcoin mining enterprise, utilizing efficient, large-scale mining operations and strategic Bitcoin reserves.
American Bitcoin's strategic mission is centered on extensive Bitcoin accumulation through economical mining practices and additional synergistic strategies. The agreement specifies a complete stock-for-stock merger, with the transaction expected to close by the third quarter of 2025. After the merger, American Bitcoin's current shareholders are anticipated to hold about 98% ownership in the new company. The leadership team will feature prominent figures like Mike Ho, Asher Genoot, Justin Mateen, Michael Broukhim, Matt Prusak, and Eric Trump, who will guide the newly combined company forward.
GRYP Key Business Developments
Release Date: March 31, 2025
- Bitcoin Mined: 334 Bitcoin for the year ending December 31, 2024.
- Mining Revenue: Approximately $20.5 million for 2024.
- Break-even Cost per Bitcoin: $47,359 for 2024.
- Net Cost of Producing Bitcoin: Approximately $6.97 per kilowatt hour for 2024.
- Adjusted EBITDA: Approximately negative $5.5 million for 2024.
- Net Income (Q4 2024): Approximately $401,000.
- Net Loss (Full Year 2024): Approximately $21.3 million.
- Cash and Cash Equivalents (End of 2024): Approximately $0.7 million.
- Bitcoin Holdings (End of 2024): Approximately $1 million.
- Debt Restructuring: Converted $19.6 million of debt to equity.
- Total Liabilities Reduction (Q4 2024): Approximately $13 million.
- Shareholders' Equity Improvement (Q4 2024): From a deficit of $18.9 million to a deficit of $7 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Gryphon Digital Mining Inc (GRYP, Financial) successfully completed a transformative debt restructuring with Anchorage Digital, converting $13 million of debt to equity, improving cash flow significantly.
- The company has shifted its focus towards developing world-class power assets for high-performance computing (HPC) and AI data centers, positioning itself for significant growth.
- Gryphon Digital Mining Inc (GRYP) announced a definitive agreement to acquire Captus, which could position them as one of the largest dedicated HPC and AI computing infrastructure providers with up to 4 gigawatts of potential power.
- The management team and board members have shown strong confidence in the company's future by personally investing in a $2.8 million equity raise.
- The company reported a net income of approximately $401,000 for the three-month period ending December 30, 2024, a significant improvement from a net loss of approximately $10.9 million in the same period the previous year.
Negative Points
- The break-even costs per Bitcoin increased significantly from $18,192 in 2023 to $47,359 in 2024, reflecting the halving event and increased global hash rate.
- Gryphon Digital Mining Inc (GRYP) reported an adjusted EBITDA of approximately negative $5.5 million for 2024, compared to $94,000 in 2023, indicating operational challenges.
- The company's stock has come under pressure, and the market remains volatile, posing challenges for shareholder value.
- The company recognized a net loss of approximately $21.3 million for the year ended December 31, 2024, despite improvements in certain financial metrics.
- The acquisition and development of Captus require significant capital investment, and the company has yet to announce detailed financing plans for this project.
