• Bitcoin Mined: Approximately 61 Bitcoin in Q3 2024.
• Mining Revenue: $3.7 million in Q3 2024, down from $5.2 million in Q3 2023.
• Breakeven Costs per Bitcoin: $59,213 in Q3 2024, up from $21,501 in Q3 2023.
• Adjusted EBITDA: Negative $2.5 million in Q3 2024, improved from negative $4.7 million in Q3 2023.
• Net Loss: $5.9 million in Q3 2024, compared to $8.1 million in Q3 2023.
• Cash and Cash Equivalents: Approximately $0.4 million as of September 30, 2024.
• Bitcoin Holdings: $0.6 million as of September 30, 2024.
• Debt Restructuring: Converted $13 million of debt to equity and restructured $5 million on favorable terms.

• Warning! GuruFocus has detected 4 Warning Signs with GRYP.

Release Date: November 13, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Gryphon Digital Mining Inc (NASDAQ:GRYP) has enhanced its leadership team, including appointing Steve Gutterman as CEO and adding experienced members like Jimmy Vaiopoulos and Dan Grigorin.
• The company completed a transformative debt restructuring with Anchorage Digital, converting $13 million of debt to equity and restructuring the remaining $5 million on favorable terms.
• Gryphon Digital Mining Inc (NASDAQ:GRYP) has secured ultra low-cost power mining operations at around $0.01 per kilowatt hour, providing a competitive advantage.
• The company is strategically expanding into AI infrastructure hosting, leveraging its existing mining infrastructure and expertise.
• Gryphon Digital Mining Inc (NASDAQ:GRYP) has improved its financial position, with adjusted EBITDA improving from negative $4.7 million in Q3 2023 to negative $2.5 million in Q3 2024.

Negative Points

• Gryphon Digital Mining Inc (NASDAQ:GRYP) reported a net loss of $5.9 million in Q3 2024, compared to a net loss of $8.1 million in Q3 2023.
• The company's breakeven costs per Bitcoin increased significantly to $59,213 in Q3 2024 from $21,501 in Q3 2023, due to the Bitcoin halving event and increased global hashrate.
• Mining revenues decreased to $3.7 million in Q3 2024 from $5.2 million in the same period the previous year.
• The company has a relatively low cash position, with approximately $0.4 million in cash and cash equivalents as of September 30, 2024.
• Gryphon Digital Mining Inc (NASDAQ:GRYP) faces challenges in reducing power costs, with current rates averaging around $0.062 to $0.063 per kilowatt hour.

Q & A Highlights

Q: Could you elaborate on your efforts in high-performance computing (HPC)? Are you planning a new facility, or converting existing ones? A: We are looking for new spaces to launch our AI initiatives, as the current facility in New York is not ours. We are actively exploring options for this expansion.

Q: Has there been any change in your cost of power recently? A: Our power costs at Coinmint have been stable, averaging around $0.062 to $0.063 per kilowatt hour, slightly up from the previous quarter. We are exploring alternatives to reduce these costs and expect to announce developments by the end of December.

Q: What was your average Bitcoin price during the quarter, and how does the current price affect your profitability? A: The average Bitcoin price was $59,224. While the current price is over $90,000, our costs include a profit-sharing component with our hosting partner, which increases as Bitcoin prices rise.

Q: When can we expect updates on your fleet relocation and infrastructure changes? A: We will provide an update on our fleet relocation by the end of the year. Our current agreement with Coinmint runs through the end of the year, and we aim to minimize disruption during the transition.

Q: What expertise does Dan from Anchorage bring to your Board, especially regarding your AI agenda? A: Dan co-led the portfolio at Anchorage and is well-versed in the mining space. He provides valuable insights on machine procurement, power sourcing, and industry trends, enhancing our strategic direction.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.