Gryphon Digital Mining (GRYP, Financial) has entered into a definitive agreement to merge with AmericanBitcoin, a subsidiary of Hut 8. This merger will be conducted as a stock-for-stock transaction, resulting in Gryphon acquiring AmericanBitcoin. Following the merger, the business will continue under the AmericanBitcoin brand, benefiting from the leadership of AmericanBitcoin's current management and board.
The combined entity is set to be publicly traded on Nasdaq under the new ticker "ABTC." AmericanBitcoin, launched by Hut 8 earlier this year with Eric Trump, aims to become the world's largest and most efficient Bitcoin mining operation, maintaining a significant strategic reserve of Bitcoin. The transaction is expected to close as soon as the third quarter, with current shareholders of AmericanBitcoin anticipated to hold about 98% of the merged company's equity.
The governance of the new company will be under the leadership of AmericanBitcoin's existing board members, including Mike Ho, Asher Genoot, Justin Mateen, and Michael Broukhim, alongside key management figures such as Mike Ho, Matt Prusak, and Eric Trump.
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.
