Gryphon Digital Mining, Inc. (GRYP) Q4 2024 Earnings Call Transcript.
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call presents mixed signals: debt restructuring and improved net income are positive, but declining Bitcoin mining revenue and increased breakeven costs are concerning. The acquisition of Captus and improved shareholder equity offer potential growth, but uncertainties in energy costs and management's unclear responses in the Q&A section temper optimism. Given these factors, the stock price is likely to remain stable in the short term.
Key Financial Performance
Bitcoin Mined 334 coins mined in 2024, down from 740 coins in 2023, reflecting the competitive nature of Bitcoin mining and the halving event.
Mining Revenues $20.5 million in 2024, down from $21.1 million in 2023, primarily due to the decrease in Bitcoin mined.
Breakeven Costs per Bitcoin $47,359 in 2024, up from $18,192 in 2023, due to the halving event and a 66% increase in global hash rate.
Adjusted EBITDA Negative $5.5 million in 2024, down from positive $94,000 in 2023, impacted by $6 million in one-time legal and marketing fees.
Net Income (Q4 2024) $401,000 for Q4 2024, compared to a net loss of $10.9 million for Q4 2023, showing improvement despite non-cash expenses.
Net Loss (Full Year 2024) $21.3 million for 2024, improved from a net loss of $28.6 million in 2023, with a reduction in non-cash expenses.
Cash and Cash Equivalents $0.7 million as of December 31, 2024, down from $0.9 million as of December 31, 2023.
Bitcoin Holdings $1 million in Bitcoin as of December 31, 2024, down from $2 million as of December 31, 2023.
Total Liabilities Reduced by approximately $13 million due to debt restructuring with Anchorage Digital.
Accumulated Shareholders Equity Improved from a deficit of $18.9 million to a deficit of $7 million.
Average Trading Volume Increased from approximately 249,000 shares per day in Q3 to approximately 874,000 shares per day in Q4.
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
New Product Development: Gryphon Digital Mining is shifting its focus from Bitcoin mining to developing high-performance computing (HPC) and AI data centers, leveraging its expertise in energy management.
Market Expansion: The company signed a definitive agreement to acquire Captus, which will position Gryphon as one of the largest dedicated HPC and AI computing infrastructure providers with up to 4 gigawatts of potential power.
Operational Efficiency: The company improved its financial position by restructuring $19.6 million of debt to equity, significantly reducing liabilities and improving cash flow.
Strategic Shift: Gryphon is transitioning from Bitcoin mining as a primary revenue source to focusing on energy assets and HPC infrastructure, indicating a long-term strategic shift in operations.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
Competitive Pressures: Bitcoin mining is a highly competitive industry subject to variables largely outside miners' control, such as Bitcoin price, network hash rate, and energy costs.
Energy Costs and Availability: The cost and availability of power is critical to mining profitably, with power becoming an increasingly scarce and valuable resource.
Regulatory Issues: The company acknowledges that forward-looking statements are subject to numerous conditions, including those set forth in the Risk Factors section of the company's Form 10-Q and 10-K.
Economic Factors: The rapid advancement of artificial intelligence is driving an explosion in demand for high-performance computing infrastructure, which may impact energy demand and costs.
Debt Management: The company underwent a significant debt restructuring, converting $19.6 million of debt to equity, which may pose risks if not managed effectively.
Market Volatility: The stock has come under pressure due to market volatility, which can affect investor confidence and company valuation.
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
Strategic Shift: The company is shifting its focus from Bitcoin mining to developing world-class power assets for high-performance computing (HPC) and AI data centers.
Acquisition of Captus: A definitive agreement to acquire Captus was signed, positioning Gryphon to become a major HPC and AI computing infrastructure provider with up to 4 gigawatts of potential power.
Management Team Expansion: The management team has been expanded with key hires, including a new SVP of Energy Strategy and the former CFOs of Hut 8 and Marathon.
Debt Restructuring: A transformative debt restructuring with Anchorage Digital converted $19.6 million of debt to equity, improving cash flow and reducing liabilities.
Revenue Expectations: Post-acquisition of Captus, Gryphon anticipates rapidly growing high-margin recurring revenues from co-located customers, complementing baseline Bitcoin mining revenues.
Future Development Plans: The company plans to bring the first 130 megawatts of the Captus site online in 2026, with potential expansion up to 4 gigawatts.
Market Valuation: The potential value of Gryphon's 4 gigawatt capacity at Captus could be worth billions, based on comparable computing infrastructure valuations.
Focus on Execution: The company is focused on executing the acquisition, advancing development, securing strategic partnerships, and achieving key milestones to drive shareholder returns.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
Debt Restructuring: Converted $19.6 million of debt to equity with Anchorage Digital.
Cash Flow Improvement: Reduced total liabilities by approximately $13 million.
Shareholder Equity Improvement: Improved accumulated shareholders equity from a deficit of $18.9 million to a deficit of $7 million.
Stock Trading Volume: Increased average trading volume from approximately 249,000 shares per day in Q3 to approximately 874,000 shares per day in Q4.
Acquisition of Captus: Definitive agreement to acquire Captus, which could position the company to generate significant revenue growth and create extraordinary shareholder value.
Future Revenue Expectations: Expect rapidly growing high margin recurring revenues from co-located customers post-acquisition.
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:Could you kind of give us the status there, Steve, and what you're thinking?
A:We terminated our original agreement to acquire 500 wells in British Columbia but are still interested in Ericsson and engaged in conversations to acquire a subset of those assets.
Q:Is it within, say, 10 milliseconds of latency of Calgary or?
A:Yes, we have great latency with fiber from Rogers and TELUS close to the asset.
Q:Give us a little insight and maybe some comfort in how you see that progressing.
A:We believe natural gas will be the primary power source for the Captus project, with pipelines and grid connectivity for redundancy.
Q:How are you thinking about this? Would this become a site that you use to host other people's machines or do you expect that Griffin would run its own fleet?
A:We will see how the market develops after securing the asset and management team, and we are having interesting conversations with potential customers.
Q:How competitive was the process to secure Captus?
A:There has been significant interest around Captus, and we secured the asset because the management team believes in our vision.
Q:Could you elaborate a little bit more on the timing of the 136 megawatts?
A:We hope to get the first six megawatts out by the end of this year or early next year, with the 30 coming shortly after and the 100 towards the end of 2026.
Q:Are you -- can you give us any timeline on that?
A:We expect to announce details on financing imminently.
Q:Review of Unclear Management Responses
A:Management did not provide a clear timeline for the financing details, only stating that they expect to announce it imminently.
You have reached the limit. Sign up to access full content
Get started
Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
Anchorage Digital
Captus
Digital debt
Griffin
Gryphon Digital
HPC AI
Officer Salzman
Salzman Chief
compensation expense
computing infrastructure
consultant value
debt Anchorage
debt equity
debt restructuring
deficit
demand computing
depreciation employee
employee stock
energy asset
expense market
fee
gain loss
gain restructuring
hash rate
intelligence
majority
market value
month period
need
note gain
restructuring Anchorage
restructuring note
role
security loss
share day
GRYP Transcript
Gryphon Digital Mining, Inc. (NASDAQ:GRYP) Q4 2024 Earnings Call Transcript
Unknown4-1
The earnings call summary reveals mixed signals: while the EPS exceeded expectations, the company faces declining revenues, increased breakeven costs, and significant debt restructuring. The Q&A section highlights potential partnerships and interest in Captus, but also reveals vague responses on financing timelines. Despite shareholder value creation initiatives, the competitive and volatile nature of the industry, coupled with regulatory and economic challenges, suggests a neutral stock price reaction over the next two weeks.
Gryphon Digital Mining, Inc. (GRYP) Q4 2024 Earnings Call Transcript.
Unknown3-31
The earnings call presents mixed signals: debt restructuring and improved net income are positive, but declining Bitcoin mining revenue and increased breakeven costs are concerning. The acquisition of Captus and improved shareholder equity offer potential growth, but uncertainties in energy costs and management's unclear responses in the Q&A section temper optimism. Given these factors, the stock price is likely to remain stable in the short term.
Gryphon Digital Mining, Inc. (GRYP) Q4 2024 Earnings Call Transcript.
Unknown3-31
The earnings call presents mixed signals: debt restructuring and improved shareholder equity are positives, but declining Bitcoin mining output and increased breakeven costs are concerning. The Q&A reveals uncertainties about future acquisitions and financing, which may cause investor hesitation. The competitive and regulatory risks further contribute to a neutral sentiment. Overall, the combination of positive debt management and negative operational metrics balance each other out, suggesting a neutral stock price movement in the short term.
Gryphon Digital Mining, Inc. (GRYP) Q3 2024 Earnings Call Transcript
Unknown11-14
The earnings call highlights several challenges for Gryphon, including increased breakeven costs, a net loss, and low cash reserves, which outweigh positive aspects like debt restructuring and cost improvements. The Q&A section reveals uncertainties around AI market entry and operational transitions, further contributing to a negative sentiment. Despite a slight improvement in net loss and adjusted EBITDA, the financial strain and lack of clear guidance create a negative outlook for the stock price over the next two weeks.
GRYP Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
