OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from / to Commission file number 001-39096 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 GRYPHON DIGITAL MINING, INC. (Exact name of registrant as specified in its charter) | Delaware | 83-2242651 | | --- | --- | | (Stat ...

美国比特币公司成立于今年3月，专门从事比特币挖矿业务，并致力于比特币战略储备开发。这家公司 前身为美国数据中心公司(American Data Centers Inc.)，由包括特朗普兄弟在内的一群投资者创立。 合并完成后，美国比特币公司现有股东预计将持有新公司约98%的股份。新公司将由美国比特币公司的 董事会和管理团队领导，埃里克·特朗普将继续担任首席战略官一职。 赫特8公司首席执行官阿舍·吉诺特(Asher Genoot)表示："这笔交易标志着美国比特币公司发展迈出关键 一步，将助力其成为大规模低成本积累比特币的专业平台。通过推动美国比特币公司上市，我们不仅能 够独立获取专项发展资金，不再依赖赫特8公司的资产负债表，同时也能为股东保留从比特币价格上涨 中获利的长期机会。" 智通财经APP获悉，一家与特朗普家族关联、专注比特币业务的企业，将通过与Gryphon Digital Mining 公司(GRYP.US)合并实现上市。Hut 8 Corp.(HUT.US)周一发布声明称，旗下控股的美国比特币公司 (American Bitcoin Corp.)将与Gryphon进行全股票合并交易。该公司部分股权由埃 ...

Financial Performance - Gryphon Digital Mining reported mining revenues of $3.845 million for Q4 2024, an increase from $3.689 million in Q3 2024[9] - The company achieved a net income of $0.4 million in Q4 2024, compared to a net loss of $11.0 million in fiscal 2023[9] - Total revenues for 2024 decreased to $20,539,000 from $21,925,000 in 2023, representing a decline of approximately 6.3%[24] - Mining activities revenue was $20,539,000, while management services revenue was $0 in 2024, compared to $873,000 in 2023[24] - The net loss for 2024 was $21,300,000, an improvement from a net loss of $28,599,000 in 2023, reflecting a decrease of approximately 25.6%[24] - The net loss per share improved to $(0.51) in 2024 from $(0.83) in 2023[24] Cash and Assets - Cash and cash equivalents increased from $368,000 to $735,000 during Q4 2024[6] - Total assets decreased from $18.834 million in 2023 to $7.632 million in 2024[22] - Cash flows from operating activities resulted in a net cash used of $3,396,000 in 2024, compared to a net cash provided of $3,011,000 in 2023[26] - Cash and cash equivalents at the end of the period were $735,000 in 2024, down from $915,000 in 2023[26] Liabilities and Expenses - Total liabilities decreased by over 70%, with $13 million of debt converted to equity[9] - Total operating expenses decreased to $38,286,000 in 2024 from $41,103,000 in 2023, a reduction of about 6.9%[24] - The company incurred merger and acquisition costs of $394,000 in 2024, with no such costs reported in 2023[24] Mining Operations - The breakeven cost per Bitcoin in Q4 2024 was $75,872, significantly higher than $23,902 in Q4 2023[9] - Gryphon mined approximately 61 Bitcoin in Q4 2024, down from 176 Bitcoin in Q4 2023[9] - The company reported a gain on settlement of BTC Note amounting to $6,248,000 in 2024, with no comparable gain in 2023[24] - The company purchased mining equipment for $1,075,000 in 2024, a decrease from $1,894,000 in 2023[26] Stock and Market Activity - The average trading volume of Gryphon's stock increased from approximately 249,000 shares per day in Q3 2024 to approximately 874,000 shares per day in Q4 2024[6] - The company closed a $2.85 million offering with 100% management and majority board participation[9] Future Opportunities - Gryphon is focused on closing the Captus Energy Acquisition, which is expected to represent a billion-dollar opportunity[4]

Gryphon Digital Mining, Inc. (NASDAQ:GRYP) Q4 2024 Earnings Conference Call March 31, 2025 4:30 PM ET Company Participants Steve Gutterman - Chief Executive Officer Sim Salzman - Chief Financial Officer Conference Call Participants Kevin Dede - H.C. Wainwright Jon Hickman - Ladenburg Thalmann Operator Greetings and welcome to the Gryphon Digital Mining Fourth Quarter and Full Year 2024 Earnings Call. On the call are Steve Gutterman, Chief Executive Officer of the company; and Sim Salzman, Chief Financial Of ...

Strategy and Operations - Gryphon's new strategy focuses on acquiring and developing energy assets for AI and high-performance computing (HPC) data center infrastructure since September 2024[28]. - Gryphon operates approximately 9,660 bitcoin ASIC mining computers, generating revenue based on a dollar per megawatt-hour (MWh) basis, which is variable depending on Bitcoin price and global hash rates[30]. - Gryphon entered into a Co-Location Mining Services Agreement with Blockfusion for hosting 3,780 bitcoin miners, entitled to 12 MW of power at a cost of $156,000 per month[31]. - The Mawson Agreement allows Gryphon to host up to 5,880 miners with 20 MW of power at approximately $23.50 per MW/hour, with a minimum fee of about $165,521 per month[32]. - Gryphon is acquiring Captus Generation Ltd. and related entities for CAD $24 million, with a focus on developing AI HPC infrastructure on 850 acres in Alberta[50]. - The Captus Site is considered highly suitable for development due to its redundant natural gas lines, grid connectivity, and access to non-potable water[51]. - Gryphon has delivered 3,996 bitcoin miners to Blockfusion and 6,719 miners to Mawson subsequent to December 31, 2024[31][32]. - The Company entered into an Asset Purchase Agreement to acquire four natural gas generators with a combined standby rating of 1,900 kW and 566 bitcoin ASIC mining computers with a total hashrate capacity of approximately 57,120 TH/s[55]. - The total purchase price for the Giga Acquisition remains $1,500,000, with an additional advance payment of $250,000 made to the Seller[56]. - As of December 31, 2024, the Company operates a miner fleet composed of 7,128 S19j Pro Antminers, 552 S19k Pro Antminers, 276 S21 Antminers, and 878 S19j Pro + Antminers, with a total hashrate capacity of approximately 1,000 TH/s[63]. Financial Performance and Risks - Gryphon's revenue is primarily derived from bitcoin mining, with the price of bitcoin ranging between approximately $39,000 and $106,000 in fiscal 2024, directly impacting profitability[87]. - The company's operating results are significantly tied to the value of bitcoin, which is subject to high volatility and regulatory uncertainties[88]. - Gryphon's ability to earn bitcoin rewards is directly proportional to its mining power (hashrate), which must continuously expand to remain competitive[92]. - Gryphon's average bitcoin holding period was 30 days for the year ended December 31, 2024, compared to 25 days for the year ended December 31, 2023[72]. - Gryphon's traditional revenue model involves mining and holding bitcoin, selling only what is necessary for operating expenses and reinvestment[72]. - Gryphon's financial statements are prepared on a going concern basis, indicating substantial doubt about its ability to continue operations[160]. - Gryphon's future profitability is uncertain, and it may incur additional losses and negative cash flows in the foreseeable future[162]. - Gryphon may face liquidity constraints and need additional capital, which may not be available on favorable terms[115]. - Gryphon's digital assets are not insured against theft, loss, or destruction, increasing the risk of significant financial losses for the company and its stockholders[129]. - Gryphon's reliance on a single model of miner increases operational risks, as any design flaws could affect the entire system[182]. Regulatory Environment - Regulatory scrutiny of the blockchain and bitcoin industries is increasing, with multiple U.S. federal agencies involved in rulemaking and oversight[83]. - The U.S. government is working towards establishing a unified federal regulatory regime for cryptocurrencies, which may impact Gryphon's operations[217]. - Regulatory changes could require Gryphon to register and comply with securities laws, potentially leading to extraordinary expenses or operational changes[219]. - Certain jurisdictions have deemed cryptocurrencies illegal, which could adversely affect Gryphon's ability to operate and the value of its Bitcoin holdings[225]. - Gryphon's business is exposed to extensive and evolving regulatory risks, which could adversely affect its operations and financial condition[213]. - The evolving regulatory landscape may lead to increased operational burdens or the need to cease certain operations if compliance becomes too costly[219]. Market Dynamics and Competition - Gryphon faces significant competition from larger companies with greater resources, which may hinder its ability to expand and remain competitive[192]. - Gryphon's business relies on a limited number of digital asset mining equipment suppliers, making it vulnerable to supply fluctuations and price volatility[179]. - The ongoing shortage of ASIC chips, a critical component for mining machines, may impact Gryphon's self-mining operations and costs[180]. - Gryphon's operations may be impacted by cybersecurity risks, including potential attacks on its systems and the loss of access to private keys[166]. - Gryphon's ability to raise additional capital is essential for funding operations and strategic growth initiatives, with potential dilution of existing stockholders' interests[159]. Technological and Operational Challenges - Gryphon's hash rate growth is critical to remain competitive, as the global network hash rate is expected to increase with greater Bitcoin adoption[156]. - Gryphon must continually add new miners to grow its hash rate in line with the Bitcoin network hash rate to remain competitive[177]. - The price of new miners has increased due to rising demand and scarcity, which may hinder Gryphon's ability to fund hash rate growth[177]. - Gryphon's mining operations depend on third-party mining pools, exposing it to risks from potential downtime or issues with the pool operator[184]. - Gryphon's hosting arrangements are uncertain and competitive, with potential regulatory changes affecting availability[185]. External Factors and Market Sentiment - Gryphon's success is contingent upon the continued market acceptance and value of bitcoin, which may be influenced by various external factors including regulatory changes and market dynamics[90]. - Geopolitical and economic crises could lead to large-scale sell-offs of digital assets, negatively impacting Bitcoin's value and Gryphon's business[102]. - The failure or insolvency of major exchanges like FTX has led to significant price volatility in the crypto asset markets, adversely affecting Gryphon's financial condition[96]. - A decline in Bitcoin adoption could weaken demand, negatively impacting Gryphon's business and leading to lower trading volumes and diminished liquidity[100]. - Internet disruptions could significantly impact Gryphon's ability to mine Bitcoin and the overall price of Bitcoin[154].

Financial Data and Key Metrics Changes - Gryphon mined approximately 61 Bitcoin and generated mining revenues of $3.7 million in Q3 2024, compared to 176 Bitcoin and $5.2 million in the same period in the prior year [10] - Breakeven costs per Bitcoin in Q3 2024 were $59,213, significantly higher than $21,501 in Q3 2023, reflecting the halving event and increased global hashrate [10] - Adjusted EBITDA was approximately negative $2.5 million for Q3 2024, an improvement from negative $4.7 million in Q3 2023 [11] - The company recognized a net loss of $5.9 million in Q3 2024, compared to a net loss of $8.1 million in Q3 2023 [12] Business Line Data and Key Metrics Changes - The company has enhanced its leadership team to accelerate growth, including the appointment of a new Chairman and Board members with significant industry experience [5][6] - A transformative debt restructuring was completed, converting $13 million of debt to equity and restructuring the remaining $5 million on favorable terms, significantly strengthening the financial position [6][7] Market Data and Key Metrics Changes - The market capitalization of Gryphon has moved north of $40 million, exceeding NASDAQ listing requirements [7] - The average Bitcoin price during the quarter was $59,224, with the current price exceeding $90,000 [26] Company Strategy and Development Direction - The company is focused on both core Bitcoin mining operations and strategic expansion into AI infrastructure hosting, leveraging low-cost power [4][17] - Gryphon aims to diversify revenue and accelerate growth by becoming a leading provider of high-performance computing for AI applications [18][19] - The company plans to make meaningful progress towards AI hosting through organic development and potential strategic M&A [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning to capitalize on the growing demand for AI compute, viewing it as a unique opportunity [17][18] - The company is committed to methodically building its core Bitcoin mining business while pursuing AI opportunities [19][20] Other Important Information - The company has secured ultra-low-cost power mining operations at around $0.01 per kilowatt hour, which is seen as a competitive advantage [9] - The debt restructuring has transformed a significant liability into a strength, with Anchorage becoming the largest shareholder and a key partner [38][39] Q&A Session Summary Question: Can you elaborate on your efforts in HPC? - The company is looking for new spaces to launch AI operations, not converting existing Bitcoin facilities [22] Question: Has anything happened with your cost of power recently? - The cost of power has been consistent, averaging around $0.062 to $0.063 per kilowatt hour, with efforts to find alternatives [23][24] Question: What was the average Bitcoin price during the quarter? - The average Bitcoin price was $59,224 [26] Question: How do you see the transition to lower-cost power? - The company is actively engaged in relocating its fleet and expects significant announcements by the end of the year [25][31] Question: What is the efficiency of the current fleet? - The current fleet is expected to be fully depreciated over the next 12 months, with profitability at Bitcoin prices above $65,000 [34] Question: What expertise will be needed for the HPC endeavor? - The company plans to add power experts and HPC specialists as it identifies significant power opportunities [40]

Mining Performance - For the three months ended September 30, 2024, Gryphon mined approximately 61 bitcoins, a decrease of 65% compared to 176 bitcoins mined in the same period of 2023[171]. - Mining revenues for Q3 2024 were $3,689,000, down 29% from $5,189,000 in Q3 2023[172]. - The cost to mine one bitcoin in Q3 2024 was $59,213, significantly higher than $22,625 in Q3 2023, reflecting increased operational costs[172]. - Gryphon's total bitcoin equivalent coins generated in Q3 2024 were 61, compared to 185 in Q3 2023, indicating a decline in mining efficiency[172]. - The average value of one mined bitcoin in Q3 2024 was $60,475, compared to $29,483 in Q3 2023, highlighting a substantial increase in bitcoin prices[172]. Financial Performance - Mining revenues increased to $16,694,000 for the nine months ended September 30, 2024, from $14,992,000 for the same period in 2023, representing an increase of $1,702,000 or 11.4%[188]. - The average value of Bitcoin rose to $60,000 for the nine months ended September 30, 2024, compared to $26,000 for the same period in 2023, an increase of $34,000 or 131%[188]. - Total revenues for the nine months ended September 30, 2024, were $16,694,000, up from $15,836,000 in 2023, reflecting a growth of $858,000 or 5.4%[187]. - Cost of revenues increased to $12,252,000 for the nine months ended September 30, 2024, from $9,542,000 in 2023, an increase of $2,710,000 or 28.4%[190]. - General and administrative expenses surged to $8,728,000 for the nine months ended September 30, 2024, from $3,250,000 in 2023, marking an increase of $5,478,000 or 168.6%[190]. - The Company reported a net loss of $21.7 million for the nine months ended September 30, 2024, and an adjusted EBITDA of $(3.53) million[262]. - For the three months ended September 30, 2024, the company reported a net loss of $5.95 million, an improvement from a net loss of $8.09 million in the same period of 2023, with an adjusted EBITDA of $(2.45) million[263]. Operational Costs - Gryphon's electricity cost per kilowatt hour decreased from $0.0709 in Q3 2023 to $0.0624 in Q3 2024, contributing to lower operational costs[176]. - General and administrative expenses surged to $2,439,000 for the three months ended September 30, 2024, up 203.4% from $804,000 in 2023[214]. - Professional fees increased to $1,128,000 for the three months ended September 30, 2024, from $479,000 in 2023, reflecting a rise of 135.5%[214]. Debt and Financing - Gryphon initiated an At The Market offering program with a total offering price of up to $70 million, having sold approximately 3.4 million shares for net proceeds of $2.8 million as of November 13, 2024[178]. - The restructuring of the Anchorage Loan resulted in the conversion of approximately $9.1 million into shares of Common Stock, issuing 8,287,984 shares at $1.10 per share[180]. - The New Loan Agreement includes a 4.25% interest rate and allows Anchorage to convert half of the outstanding principal at $1.10 per share and the remaining half at $1.50 per share[181]. - The Company entered into a Debt Repayment and Exchange Agreement on October 25, 2024, converting approximately $9.1 million of the Anchorage Loan into shares of common stock at $1.10 per share[249]. - The Restructured Loan has an interest rate of 4.25% payable monthly, with Anchorage given a first priority lien on all of Gryphon's assets[251]. - The BTC Note was amended to extend the maturity date to March 2026 and increase the interest rate to 6% per annum[239]. - Interest expense increased to $908,000 for the nine months ended September 30, 2024, from $530,000 in 2023, an increase of $378,000 or 71.3%[207]. Cash Flow and Liquidity - Cash and cash equivalents decreased to $368,000 as of September 30, 2024, down from $915,000 as of December 31, 2023[226]. - The accumulated deficit increased to approximately $68,137,000 as of September 30, 2024, compared to $47,175,000 as of December 31, 2023[226]. - The Company anticipates needing additional capital resources to fund operations and may consider selling additional equity or debt securities[227]. - For the nine months ended September 30, 2024, net cash used in operating activities was approximately $2,368,000, with cash proceeds from the sale of digital assets at approximately $16,649,000 and cash expenditures of approximately $19,017,000[230]. - Net cash used in investing activities for the same period was approximately $1,504,000, primarily for the purchase of mining equipment costing approximately $1,075,000[231]. - Net cash provided by financing activities was approximately $3,325,000, mainly from cash proceeds of $3,059,000 from the issuance of common stock[232]. Legal and Compliance Issues - The company identified a material weakness in internal control over financial reporting due to insufficient staffing in the accounting department, which could lead to potential misstatements[269]. - The company is committed to enhancing its internal controls by adding resources and utilizing external audit firms to address identified weaknesses[272]. - The company reached a settlement in the Core Litigation, resolving claims against it and dismissing the complaint with prejudice[286]. - Dutchie filed a complaint against the Company alleging unfair competition and tortious interference, but the court dismissed the case in October 2023, allowing for an appeal[291]. - TreCom filed suit against the Company seeking recovery of approximately $4.2 million for breach of contract, with a trial set to commence on December 2, 2024[293]. - The Company established a loss contingency of $0.2 million related to the TreCom matter, which remains outstanding as of September 30, 2024[293]. - The former CEO was terminated for cause on September 17, 2024, and subsequently filed a wrongful termination claim against the Company[294][295]. - A special committee was created by the Board to oversee the handling of the wrongful termination claim[296]. - The Company intends to vigorously defend against all ongoing litigation and claims[291][295][296]. - Litigation may have an adverse impact on the Company due to defense costs and diversion of management resources[296].

Financial Performance - Mining revenues for Q3 2024 were $3.7 million, down from $5.2 million in Q3 2023[3] - The company reported a net loss of $5.9 million in Q3 2024, an improvement from a net loss of $8.1 million in Q3 2023[4] - Adjusted EBITDA loss narrowed to $2.5 million in Q3 2024, compared to a loss of $4.7 million in Q3 2023[5] - Total revenues for the three months ended September 30, 2024, were $3,689,000, a decrease of 32.5% compared to $5,477,000 for the same period in 2023[16] - The company reported a net loss of $5,948,000 for the three months ended September 30, 2024, compared to a net loss of $8,086,000 for the same period in 2023, indicating an improvement of 26.1%[16] - The net loss for the nine months ended September 30, 2024, was $21,701,000, compared to a net loss of $17,619,000 for the same period in 2023, representing an increase in loss of approximately 23.5%[21] Mining Operations - Breakeven cost per Bitcoin increased to $59,213 in Q3 2024, compared to $22,625 in Q3 2023[3] - The company mined approximately 61 Bitcoin in Q3 2024, significantly lower than 176 Bitcoin mined in Q3 2023[5] - Mining activities generated revenues of $3,689,000 for the three months ended September 30, 2024, down from $5,189,000 in the prior year, reflecting a decline of 29%[16] Assets and Liabilities - Total current assets as of September 30, 2024, were $1.7 million, with total assets amounting to $7.5 million[6] - Current liabilities stood at $26.4 million as of September 30, 2024, following a successful debt restructuring[6] - Total current assets decreased to $1,688,000 as of September 30, 2024, from $5,398,000 at December 31, 2023, representing a decline of 68.7%[15] - Total liabilities increased to $26,408,000 as of September 30, 2024, compared to $19,433,000 at December 31, 2023, reflecting a rise of 36.5%[15] - The company’s accumulated deficit increased to $(68,137,000) as of September 30, 2024, compared to $(47,175,000) at the end of 2023, representing a deterioration of 44.4%[15] - The company reported total stockholders' deficit of $(18,863,000) as of September 30, 2024, compared to $(599,000) at December 31, 2023, indicating a significant increase in deficit[15] Cash Flow and Investments - Cash used in operating activities was $(2,368,000) for 2024, a significant decrease from the cash provided of $3,064,000 in 2023[21] - The company reported a net cash used in investing activities of $(1,504,000) in 2024, compared to $(1,902,000) in 2023, showing a reduction in cash outflow[21] - Cash at the end of the period was $368,000, down from $1,405,000 at the end of the previous year, reflecting a decrease of approximately 73.8%[21] Expenses and Impairments - General and administrative expenses surged to $2,439,000 for the three months ended September 30, 2024, compared to $804,000 in the same period last year, marking an increase of 203.6%[16] - The impairment of digital assets was recorded at $1,295,000 in 2024, while there was no impairment reported in 2023[21] - The depreciation expense for the nine months ended September 30, 2024, was $9,435,000, down from $11,906,000 in 2023, indicating a decrease of about 20.7%[21] Strategic Initiatives - The company aims to enhance financial flexibility and secure low-cost power deals to expand Bitcoin mining operations and explore AI computing opportunities[2] - Market capitalization exceeded $40 million, reflecting growing market confidence in the company's strategic direction[2] - The company plans to announce several initiatives in the coming months to maximize shareholder value[2] Stock and Shares - The weighted average shares outstanding for basic and diluted calculations increased to 40,611,068 for the three months ended September 30, 2024, compared to 14,450,688 in the prior year[16] - The company recognized a fair value of common stock issued to consultants amounting to $1,708,000 in 2024[21] - The proceeds from the sale of digital assets were $16,649,000 in 2024, an increase from $13,958,000 in 2023, representing a growth of approximately 19.2%[21]

Financial Data and Key Metrics Changes - Gryphon Digital Mining reported a quarterly average hash rate of 899 petahashes per second in Q2 2024, a 20% increase from the same quarter in the previous year [3] - Mining revenues for Q2 2024 were $5.5 million, compared to $4.9 million in the same period last year [8] - Breakeven costs increased to approximately $45,452 in Q2 2024 from $34,063 in Q1 2024, reflecting the halving event and increased global hash rate [8] - The net loss for Q2 2024 was $4 million, compared to a net loss of $2.6 million in Q2 2023 [10] - Adjusted EBITDA for Q2 2024 was approximately negative $3 million, compared to negative $4.2 million in Q2 2023 [10] Business Line Data and Key Metrics Changes - Gryphon mined approximately 84 Bitcoin in Q2 2024, with an average Bitcoin price increase from $25,428 to $59,572, a 134% rise [8][9] - The average efficiency for the active fleet of approximately 8,825 Bitcoin mining machines was around 28 joules per terahash as of June 30, 2024 [11] Market Data and Key Metrics Changes - The daily average global hash rate increased by 68% from 357.7 exahash to 602.1 exahash per day year-over-year [8] - Recent market fluctuations in Bitcoin prices were attributed to factors such as Germany selling off Bitcoin holdings and geopolitical instability [5] Company Strategy and Development Direction - The company is focused on growth and has vetted over 25 acquisition prospects, emphasizing accretive opportunities [7] - Gryphon aims to maintain a competitive advantage through a flexible cost structure that allows production costs to decrease with falling Bitcoin prices [6] - The company is actively pursuing low-cost power sources to enhance its operational efficiency and position for future growth [15] Management's Comments on Operating Environment and Future Outlook - Management believes the current market represents the bottom of the upcycle for Bitcoin, expecting prices to trend higher in the coming months [5] - The company is well-positioned to navigate market conditions due to its unique cost structure and operational efficiencies [6] - Management highlighted the importance of maintaining a low-cost profile in the post-halving environment to ensure long-term success [14] Other Important Information - Gryphon was selected to join the Russell Microcap Index, reflecting significant progress in capital markets [4] - The CFO announced his decision to step down, with a transition plan in place [7] Q&A Session Summary Question: Background on power draw and fleet upgrades - The company currently draws approximately 28 megawatts from its hydro-powered facility and is looking for opportunities to upgrade its machines [17][18] Question: General and administrative expenses outlook - Normal expenditures are around $2.2 million per month, with recent increases due to marketing expenses [20] Question: Insights on acquisition opportunities - The company is focusing on finding low-cost power and has passed on several opportunities due to unfavorable cost structures [21][24] Question: Approach to distressed private situations - Many companies overvalue themselves, and the company is waiting for market corrections to negotiate better deals [27][28] Question: Impact of low-cost operations on acquisitions - The company’s low-cost structure positions it well for potential acquisitions, especially in a tougher market [30] Question: Interest in specific acquisition targets - The company remains interested in several attractive acquisition opportunities and is actively engaged in discussions [32]

Financial Performance - Gryphon reported total mining revenue of $5.5 million in Q2 2024, a 12.2% increase from $4.9 million in Q2 2023[2]. - Mining activities revenue for Q2 2024 reached $5,515,000, an 11% increase from $4,963,000 in Q2 2023[15]. - Total revenues for the first half of 2024 were $13,005,000, compared to $10,359,000 in the same period of 2023, reflecting a 25.5% growth[15]. - The company recognized a net loss of $4.0 million in Q2 2024, compared to a net loss of $2.6 million in Q2 2023[3]. - The net loss for Q2 2024 was $4,009,000, compared to a net loss of $2,623,000 in Q2 2023, indicating a 52.7% increase in losses[15]. - Net loss for the six months ended June 30, 2024, was $15,753,000, compared to a net loss of $9,533,000 for the same period in 2023, representing a 65.5% increase in losses[17]. Operational Metrics - The company achieved a quarterly hashrate of 899 PH/s in Q2 2024, representing a 20% increase compared to Q2 2023[1]. - Breakeven cost per bitcoin in Q2 2024 was $45,452, up from $34,063 in Q2 2023, indicating increased operational costs[2]. - The company mined approximately 84 bitcoins in Q2 2024, down from 187 bitcoins in Q2 2023[4]. - Gryphon completed its miner upgrade program ahead of schedule, adding approximately 23 PH/s to its hashing power[3]. Expenses and Liabilities - Total operating expenses for Q2 2024 were $11,381,000, up from $7,967,000 in Q2 2023, representing a 42.5% increase[15]. - Current assets decreased to $3,244,000 as of June 30, 2024, down from $5,398,000 at the end of 2023, a decline of 39.9%[14]. - Total liabilities increased to $25,439,000 as of June 30, 2024, compared to $19,433,000 at the end of 2023, marking a 30.9% rise[14]. - The accumulated deficit grew to $(62,189,000) as of June 30, 2024, up from $(47,175,000) at the end of 2023, reflecting a 31.8% increase[14]. Cash Flow and Investments - Cash provided by operating activities was $(782,000) for the six months ended June 30, 2024, compared to $2,676,000 in the same period of 2023, indicating a significant decline in cash flow[17]. - Cash used in investing activities was $(954,000) for the first half of 2024, compared to $(1,902,000) in the same period of 2023, indicating a decrease of 49.9%[17]. - The company reported proceeds from the sale of digital assets of $12,969,000 for the first half of 2024, up from $9,155,000 in the same period of 2023, reflecting a 41.5% increase[17]. - Total cash at the end of the period was $1,219,000, an increase from $980,000 at the end of the same period in 2023[17]. Stock and Shareholder Actions - The company has authorized a stock repurchase program of up to $5 million to enhance shareholder value[3]. - The weighted average shares outstanding increased to 38,943,579 in Q2 2024 from 14,431,384 in Q2 2023, a growth of 170.5%[15]. - The company has issued common stock for cash totaling $1,395,000 during the reporting period[16]. - The company raised $2,054,000 from the issuance of common stock during the first half of 2024, with no such activity reported in the same period of 2023[17]. - Cash expenses for the issuance of common stock were $235,000 in the first half of 2024, with no expenses reported in the same period of 2023[17]. - The company reported a fair value of common stock issued to consultants amounting to $1,447,000 for the first half of 2024, compared to $126,000 in the same period of 2023, reflecting a substantial increase[17]. Market Position and Future Outlook - Gryphon qualified for inclusion in the Russell Microcap Index effective July 1, 2024[3]. - The company is focusing on acquiring low-cost power to ensure long-term success in bitcoin mining[2]. - The company reported a significant unrealized loss of $318,000 on digital assets in Q2 2024, compared to no loss in Q2 2023[15]. - Unrealized loss on digital assets amounted to $1,385,000 for the first half of 2024, while the company reported no unrealized gains in the same period of 2023[17]. - The company incurred depreciation expense of $6,539,000 for the first half of 2024, down from $7,839,000 in the same period of 2023, showing a 16.5% reduction[17].