Gryphon Digital Mining (GRYP) AI Stock Analysis

• Market Cap: $10.22M
• Dividend Yield: N/A
• Average Volume (3M): 637.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.20
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 2
• Sector: Healthcare
• Sector Strength: 74
• Industry: Financial - Capital Markets
• EPS (TTM): -0.60
• Shares Outstanding: 69,982,880
• 10 Day Avg. Volume: 650,857
• 30 Day Avg. Volume: 637,184
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.71
• Price to Cash Flow (P/CF): -1.60
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Gryphon Digital Mining's overall score reflects significant financial and operational challenges. Weak financial performance due to negative equity and operational losses are primary concerns. While the strategic pivot and corporate initiatives offer potential for future growth, current technical indicators signal bearish momentum, and valuation remains questionable. The company's ability to stabilize financially and execute its strategic shift effectively will be key to improving its stock performance.

Positive Factors

Potential Capital Acquisition

Gryphon has a solid strategic perspective and a potential agreement that could move the company closer to the capital it needs to meet timelines.

Strategic Direction

Gryphon's management is making a strategic change of direction to address the high-performance compute (HPC) market.

Negative Factors

Financial Performance

Gryphon Digital Mining reported its full-year 2024 sales of $20.5M, down from 2023's $21.1M on declining bitcoin mining economics.

Operational Challenges

The company is skating on thin ice, with no closed power deal, no financing, and no customers.

Power Infrastructure Challenges

There is no power infrastructure at the locations encompassed by the Erikson Nation Energy Inc. insolvency purchase, which presents a challenge for Gryphon.

Gryphon Digital Mining Business Overview & Revenue Model

Company Description

Gryphon Digital Mining (GRYP) is a company operating in the cryptocurrency sector, primarily focusing on sustainable Bitcoin mining. The company is committed to utilizing renewable energy sources to power its mining operations, thereby reducing the carbon footprint associated with traditional cryptocurrency mining activities. Gryphon Digital Mining aims to lead the industry in environmental responsibility while maintaining high operational efficiency and productivity in Bitcoin mining.

How the Company Makes Money

Gryphon Digital Mining makes money through the process of mining Bitcoin, which involves solving complex mathematical problems to validate transactions on the Bitcoin network. In return for this computational work, the company earns Bitcoin as a reward, which can then be held as an asset or sold on the cryptocurrency market for revenue. Additionally, Gryphon's focus on using renewable energy can potentially reduce operational costs, thereby improving profit margins. The company may also engage in strategic partnerships, leveraging technology or energy solutions to enhance its mining capabilities and operational efficiency.

Gryphon Digital Mining Financial Statement Overview

Summary

Gryphon Digital Mining's financial performance is weak, with persistent losses, high leverage, and negative equity. The company is currently facing significant financial challenges and risks.

Income Statement

Gryphon Digital Mining's income statement reveals significant challenges. The company reported negative net income and EBIT consistently, indicating ongoing unprofitability. Gross profit margin improved in the TTM but remains low, reflecting high cost pressures. Revenue growth is volatile, with a decline from 2021 to 2023. Overall, the financial trajectory shows persistent losses and weak profitability metrics.

Balance Sheet

The balance sheet indicates financial distress, characterized by negative stockholders' equity and high leverage. The debt-to-equity ratio is concerning due to negative equity, and the equity ratio is unfavorable, showing more liabilities than assets. This reflects a precarious financial position with potential solvency risks.

Cash Flow

Cash flow analysis shows negative free cash flow in the TTM, suggesting inadequate cash generation to cover investments. The operating cash flow to net income ratio is negative, indicating cash outflows from operations. Free cash flow growth is negative, highlighting challenges in sustaining cash flows. Financing activities, however, provided some relief via positive cash inflow.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2018
Income Statement		Total Revenue
22.78M	6.84M	10.46M	17.63M	15.65M	0.00
	Gross Profit
3.36M	-6.63M	1.12M	5.02M	5.35M	0.00
	EBIT
-17.42M	-4.49M	-16.05M	-15.89M	-17.50M	-906.17K
	EBITDA
-11.15M	-7.45M	-41.70M	-19.92M	-29.50M	-906.17K
	Net Income Common Stockholders
-32.68M	-11.79M	-79.06M	-31.33M	-33.91M	-29.96K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.38M	1.32M	7.88M	13.09M	18.34M	4.49K
	Total Assets
7.00M	18.83M	19.47M	94.48M	77.17M	58.47M
	Total Debt
8.46M	14.87M	14.61M	17.30M	15.60M	0.00
	Net Debt
7.08M	13.95M	6.73M	4.22M	-2.74M	-4.49K
	Total Liabilities
12.78M	19.43M	24.29M	34.53M	19.64M	391.74K
	Stockholders Equity
-5.79M	-599.00K	-4.83M	59.95M	57.53M	58.08M
Cash Flow		Free Cash Flow
-3.85M	1.12M	-15.28M	-13.63M	-10.57M	-609.02K
	Operating Cash Flow
-2.42M	3.01M	-10.90M	-8.17M	-8.71M	-609.02K
	Investing Cash Flow
-1.86M	-2.25M	-3.97M	-10.49M	-7.14M	-57.50M
	Financing Cash Flow
3.24M	-109.00K	8.64M	14.74M	9.53M	58.09M

Gryphon Digital Mining Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GRYP, the sentiment is Negative. The current price of 0.15 is below the 20-day moving average (MA) of 0.18, below the 50-day MA of 0.24, and below the 200-day MA of 0.57, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 32.37 is Neutral, neither overbought nor oversold. The STOCH value of 14.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GRYP.

Gryphon Digital Mining Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RIOT	63 Neutral	$2.49B	18.99	4.35%	―	34.20%	―
MARA	55 Neutral	$3.89B	7.67	18.84%	―	69.38%	30.30%
HUT	49 Neutral	C$1.69B	3.39	2.56%	―	199.41%	―
Sector *	48 Neutral	$6.36B	1.24	-44.94%	2.70%	18.33%	1.47%
GRYP	38 Underperform	$10.22M	―	173.25%	―	―	―
ARBK	37 Underperform	$25.30M	―	242.25%	―	―	―
BITF	36 Underperform	$586.86M	―	-11.98%	―	33.77%	61.73%

Gryphon Digital Mining Corporate Events

Gryphon Digital Mining Faces Nasdaq Delisting Challenge

On March 5, 2025, Gryphon Digital Mining received a staff delist determination letter from Nasdaq due to non-compliance with the minimum bid price requirement, following a 180-day period to rectify the issue. The company plans to request a hearing to present its compliance plan and has engaged Donohoe Advisory Associates LLC for assistance. Additionally, Gryphon has resolved its legal dispute with Sphere 3D Corp. through a settlement agreement, allowing the company to focus on its business strategy and shareholder value creation.

Gryphon Digital Mining Terminates Purchase Agreement with Erikson

Gryphon Digital Mining, Inc. had entered into a Purchase Agreement with Erikson National Energy Inc. on December 9, 2024, to acquire Erikson’s natural gas and oil assets in northeast British Columbia. However, after reviewing its due diligence findings, Gryphon terminated the agreement on February 27, 2025, with no material early termination penalties, but remains interested in potentially purchasing a subset of Erikson’s assets in the future.

Gryphon Digital Mining Announces Strategic Bitcoin Reserve Program

On January 31, 2025, Gryphon Digital Mining announced the launch of a strategic Bitcoin reserve program as part of its capital strategy. This initiative follows recent agreements aimed at strengthening the company’s balance sheet, including a significant debt restructuring and an acquisition of an HPC/AI asset in Alberta. The establishment of the Bitcoin reserve is seen as a strategic move to enhance the company’s operations and address perceived discrepancies between its fundamental value and market valuation.

Gryphon Digital Mining Expands Fleet and Considers Bitcoin Reserve

On January 27, 2025, Gryphon Digital Mining acquired 1,900 S19JPro series machines from RepairBit LLC for approximately $0.6 million, increasing their mining fleet by 22% to a total of 10,400 machines. This strategic purchase was made at a 20% discount to market rates, enhancing Gryphon’s competitive position in the bitcoin mining sector. Additionally, the company is considering the establishment of a strategic bitcoin reserve to strengthen its balance sheet, reflecting its ongoing commitment to core strategic initiatives and power asset development.

Gryphon Digital Mining Raises $2.85M for Expansion

On January 14, 2025, Gryphon Digital Mining announced a non-brokered common stock offering executed on January 13, 2025, raising approximately $2.85 million. The offering, which saw full participation from the management team and majority board members, reflects strong internal confidence in the company’s strategic direction. This capital raise aims to fund Gryphon’s expansion projects, including agreements for scalable HPC/AI assets in Alberta and natural gas assets in British Columbia. The initiative marks a strategic move to maximize shareholder value while preparing for significant growth in the bitcoin and AI markets.

Gryphon Digital Mining Expands with Major Acquisition in Canada

Gryphon Digital Mining has signed a definitive agreement to acquire Captus Energy’s 850-acre industrial site in Southern Alberta, Canada, for CAD $27 million, marking a significant expansion into AI and high-performance computing (HPC) infrastructure. This acquisition positions Gryphon to potentially generate substantial revenue, with the site scalable to 4 gigawatts of power capacity through natural gas and carbon sequestration, and follows strategic moves to secure assets in British Columbia, aiming to transform Gryphon’s trajectory and scale.