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 4.9 million in the same period last year [8] - Breakeven costs increased to approximately 34,063 in Q1 2024, reflecting the halving event and increased global hash rate [8] - The net loss for Q2 2024 was 2.6 million in Q2 2023 [10] - Adjusted EBITDA for Q2 2024 was approximately 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 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]
Gryphon Digital Mining(GRYP) - 2024 Q2 - Earnings Call Transcript