LAS VEGAS - Gryphon Digital Mining, Inc. (NASDAQ:GRYP), a company specializing in bitcoin mining with a focus on energy efficiency and sustainability, announced today its acquisition of a new mining operation. The operation, situated in Louisiana, features ultra low-cost electricity at approximately $0.01 per kilowatt-hour and is expected to contribute significantly to the company's revenue.
The acquired assets include gas power generators, containers, and bitcoin mining machines with a total capacity of 59 petahash per second (PH/s), spread across up to 2.9 megawatts (MW) of operational facilities. Gryphon invested $1.5 million into the acquisition, a sum they anticipate will be immediately accretive, potentially generating around $1 million in annual revenue.
Gryphon's CEO Rob Chang emphasized the strategic importance of securing low-cost power for thriving in the competitive global bitcoin mining industry. The company's roadmap includes over 500 MW of similar low-cost power generation opportunities, aiming to bolster Gryphon's standing as a cost-effective operator in the sector.
In addition to the financial benefits, the acquisition aligns with Gryphon's environmental stewardship goals. The new operations utilize flare gas, a waste product from oil extraction typically burned off, as an energy source. This practice reduces carbon emissions by repurposing the gas for energy production instead of releasing it into the atmosphere.
Gryphon, already operating a 100% independently certified hydro-powered facility in the northeastern U.S., continues to pursue environmentally responsible energy sources for its digital mining operations.
The company is slated to present at the H.C. Wainwright 26th Annual Global Investment Conference in New York on September 9-11 and at the LD Micro Main Event XVII in Los Angeles on October 28-30.
The information in this article is based on a press release statement from Gryphon Digital Mining, Inc.
In other recent news, Gryphon Digital Mining reported significant developments in its operations and legal proceedings. The company posted a Q2 hashrate of 899 petahashes per second, a 20% increase from the previous year, 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. H.C. Wainwright maintained a Neutral rating on Gryphon following the release of these figures.
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.
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) expands its bitcoin mining operations with the recent acquisition in Louisiana, investors are scrutinizing the company's financial health and market performance. According to InvestingPro data, Gryphon has a market capitalization of $33.57 million, reflecting the size and scale of the business in the competitive cryptocurrency mining sector. Despite the promising expansion, the company's P/E ratio stands at -0.84, indicating that it is not currently profitable.
InvestingPro Tips suggest that Gryphon's short-term obligations exceed its liquid assets, which could present liquidity challenges. Additionally, analysts do not anticipate the company will be profitable this year, which aligns with the adjusted P/E ratio for the last twelve months as of Q2 2024 being -1.93. The company's stock performance has also seen significant volatility, with a notable return over the last week but a substantial decline over the last month, three months, and six months, highlighting the risks associated with investing in the cryptocurrency mining industry.
Furthermore, Gryphon's commitment to environmental stewardship and low-cost power generation is a key aspect of its strategy, yet InvestingPro Tips reveal that the stock has not been immune to broader market trends, as evidenced by the 79.7% year-to-date price total return. For investors seeking more detailed analysis, InvestingPro offers additional tips on Gryphon Digital Mining's financials and market performance at https://www.investing.com/pro/GRYP.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.