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Gryphon Digital Mining (GRYP)
NASDAQ:GRYP
US Market

Gryphon Digital Mining (GRYP) AI Stock Analysis

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Gryphon Digital Mining

(NASDAQ:GRYP)

Rating:52Neutral
Price Target:
$1.00
▼(-31.97%Downside)
Gryphon Digital Mining's overall stock score is 53, driven primarily by its substantial financial challenges and weak valuation metrics. However, recent corporate events such as the merger and Nasdaq compliance have positively impacted the stock's outlook. Technical analysis also indicates moderate positive sentiment, though caution is warranted due to financial instability.
Positive Factors
Asset Development
American Bitcoin's scale and access to capital provide a greater chance of successfully developing Gryphon's assets.
Strategic Partnership
The partnership with American Bitcoin, led by a CEO with a strong background at Hut, presents a promising opportunity for Gryphon.
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.
Speculative Risks
Despite the promising link-up with American Bitcoin, Gryphon still faces high speculative risks due to its exposure to volatile cryptocurrencies and the lack of signed HPC deals.
Valuation Uncertainty
There remains uncertainty about Gryphon's valuation due to multiple contributing factors, making it challenging to decide on changing the current investment stance.

Gryphon Digital Mining (GRYP) vs. SPDR S&P 500 ETF (SPY)

Gryphon Digital Mining Business Overview & Revenue Model

Company DescriptionGryphon Digital Mining (GRYP) is a forward-thinking cryptocurrency mining company focused on environmentally sustainable operations. Operating in the technology and financial sectors, Gryphon leverages cutting-edge mining hardware and renewable energy strategies to mine various digital currencies, with a primary focus on Bitcoin. The company's mission is to lead in the digital currency mining industry while minimizing its carbon footprint.
How the Company Makes MoneyGryphon Digital Mining generates revenue primarily through the mining of cryptocurrencies, predominantly Bitcoin. The company utilizes advanced mining rigs and green energy solutions to efficiently solve cryptographic puzzles, which in turn allows them to earn block rewards and transaction fees in the form of cryptocurrency. These mined currencies are either held as assets or sold on cryptocurrency exchanges to convert into fiat money. Gryphon's revenue model is heavily influenced by the market prices of cryptocurrencies, the difficulty of mining, and their operational efficiency in terms of energy consumption. The company may also engage in strategic partnerships or initiatives that enhance its mining capabilities and sustainability goals, thereby contributing to its revenue streams.

Gryphon Digital Mining Earnings Call Summary

Earnings Call Date:May 19, 2025
(Q4-2024)
|
% Change Since: 5.76%|
Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a strategic pivot from Bitcoin mining to power generation for HPC and AI data centers, highlighted by the significant Captus acquisition. While the company has improved its financial position through debt restructuring and strategic shifts, increased breakeven costs and a notable net loss pose challenges.
Q4-2024 Updates
Positive Updates
Debt Restructuring with Anchorage Digital
The company converted $13 million of debt to equity at a premium to stock price, significantly improving cash flow by reducing monthly interest payments and making Anchorage the largest shareholder.
Strategic Shift Towards Power Generation
The company announced a shift in focus from Bitcoin mining to developing world-class power assets for HPC and AI data centers, with a definitive agreement to acquire Captus, potentially providing up to 4 gigawatts of power.
Improved Financial Position
The company increased cash and cash equivalents from $368,000 to $735,000, reduced liabilities by approximately $13 million, and improved shareholder equity from a deficit of $18.9 million to $7 million.
Captus Acquisition
The acquisition of Captus is expected to position the company as one of the largest HPC and AI computing infrastructure providers with access to abundant natural gas and on-site carbon sequestration.
Negative Updates
Increased Breakeven Costs and Negative EBITDA
Breakeven costs per Bitcoin increased from $18,192 to $47,359, reflecting the halving event and a 66% increase in global hash rate. Adjusted EBITDA was approximately negative $5.5 million for 2024.
Decreased Bitcoin Mining Revenue
Bitcoin mining revenue decreased from $21.1 million in 2023 to $20.5 million in 2024, despite mining more Bitcoin, due to increased breakeven costs and reduced rewards from halving.
Net Loss for 2024
The company reported a net loss of approximately $21.3 million for the year ended December 31, 2024, despite improvements in certain financial metrics.
Company Guidance
During the Gryphon Digital Mining earnings call for the fourth quarter and full year 2024, the company outlined several key metrics and strategic shifts. Gryphon mined 334 Bitcoins in 2024, generating approximately $20.5 million in revenue, compared to 740 Bitcoins and $21.1 million in revenue in 2023. The breakeven cost per Bitcoin rose to $47,359 due to a halving event and a 66% increase in global hash rate. The adjusted EBITDA for 2024 was negative $5.5 million, impacted by $6 million in legal and marketing fees, a significant increase from $94,000 in 2023. A transformative debt restructuring with Anchorage Digital reduced liabilities by $13 million, and the company's cash and cash equivalents increased to $735,000 by year-end. Gryphon announced an acquisition agreement with Captus, aiming to develop up to 4 gigawatts of power for high-performance computing and AI infrastructure. The company plans to bring the first 130 megawatts online in 2026, emphasizing its strategic shift towards power generation and sustainable computing infrastructure.

Gryphon Digital Mining Financial Statement Overview

Summary
Gryphon Digital Mining faces significant financial challenges. Despite revenue growth, profitability metrics are weak with negative EBIT and EBITDA margins. The balance sheet is precarious with negative equity, and while cash flow has improved, it remains negative overall.
Income Statement
30
Negative
Gryphon Digital Mining has experienced volatility in revenue and profitability. The revenue growth from 2023 to 2024 was significant, but the company has struggled to maintain consistent gross profit margins. Both EBIT and EBITDA margins are negative, indicating operational challenges. The net profit margin remains negative, highlighting ongoing financial difficulties.
Balance Sheet
20
Very Negative
The company's balance sheet shows signs of instability, with negative stockholders' equity indicating a potential risk of insolvency. The absence of debt in 2024 suggests a reduction in leverage, but the negative equity position raises concerns about financial health. The equity ratio is negative, underscoring the precarious financial position.
Cash Flow
40
Negative
Gryphon Digital Mining's cash flow statement reflects some positive changes, such as a significant increase in operating cash flow in 2024. However, free cash flow remains negative, and the company has faced challenges in generating consistent cash flows. The operating cash flow to net income ratio indicates substantial cash flow relative to net losses, suggesting potential for improvement.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue14.61M20.54M6.84M10.46M17.63M15.65M
Gross Profit4.82M4.72M-6.63M1.12M5.02M5.35M
EBITDA-6.25M-9.21M-7.45M-41.70M-19.92M-29.50M
Net Income-15.84M-21.30M-11.79M-79.06M-31.33M-33.91M
Balance Sheet
Total Assets8.98M7.63M18.83M19.47M94.48M77.17M
Cash, Cash Equivalents and Short-Term Investments367.00K850.00K1.32M7.88M13.09M18.34M
Total Debt5.33M5.60M14.87M14.61M17.30M15.60M
Total Liabilities16.64M14.64M19.43M24.29M34.53M19.64M
Stockholders Equity-7.66M-7.01M-599.00K-4.83M59.95M57.53M
Cash Flow
Free Cash Flow-6.71M-4.47M1.12M-15.28M-13.63M-10.57M
Operating Cash Flow-5.63M-3.40M3.01M-10.90M-8.17M-8.71M
Investing Cash Flow-4.53M-2.75M-2.25M-3.97M-10.49M-7.14M
Financing Cash Flow8.74M5.96M-109.00K8.64M14.74M9.53M

Gryphon Digital Mining Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.47
Price Trends
50DMA
0.96
Positive
100DMA
0.59
Positive
200DMA
0.56
Positive
Market Momentum
MACD
0.11
Negative
RSI
68.88
Neutral
STOCH
81.27
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GRYP, the sentiment is Positive. The current price of 1.47 is above the 20-day moving average (MA) of 1.03, above the 50-day MA of 0.96, and above the 200-day MA of 0.56, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 68.88 is Neutral, neither overbought nor oversold. The STOCH value of 81.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GRYP.

Gryphon Digital Mining Risk Analysis

Gryphon Digital Mining disclosed 67 risk factors in its most recent earnings report. Gryphon Digital Mining reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Gryphon Digital Mining Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
59
Neutral
$1.06B8.82-23.29%53.68%-265.12%
55
Neutral
$6.17B9.58-10.61%40.57%-152.87%
52
Neutral
$100.13M173.25%
52
Neutral
$7.53B0.20-61.87%2.28%16.72%1.10%
50
Neutral
$9.94M-461.16%-0.67%65.35%
48
Neutral
$25.94M22.29%-20.28%48.08%
37
Underperform
$19.03M242.25%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GRYP
Gryphon Digital Mining
1.47
0.35
31.25%
GREE
Greenidge Generation Holdings
1.84
-0.96
-34.29%
MARA
Marathon Digital Holdings
19.00
-0.02
-0.11%
BTBT
Bit Digital
3.47
-0.06
-1.70%
MIGI
Mawson Infrastructure Group
0.59
-0.71
-54.62%
ARBK
Argo Blockchain
0.28
-0.83
-74.77%

Gryphon Digital Mining Corporate Events

Executive/Board Changes
Gryphon Digital Mining Announces Director Resignation
Neutral
Jun 13, 2025

On June 10, 2025, Gryphon Digital Mining announced the resignation of Mr. Dan Tolhurst as a director, effective June 12, 2025. His resignation was not due to any disagreements with the company’s operations, policies, or practices.

Delistings and Listing ChangesM&A TransactionsRegulatory Filings and Compliance
Gryphon Digital Mining Regains Nasdaq Compliance
Positive
Jun 10, 2025

On May 9, 2025, Gryphon Digital Mining entered into a merger agreement with American Bitcoin Corp. to form a combined company, which is expected to enhance their market positioning in the digital asset mining sector. Additionally, Gryphon regained compliance with Nasdaq listing requirements as of June 6, 2025, ensuring its continued presence on the Nasdaq Capital Market, which is crucial for maintaining investor confidence and market stability.

Business Operations and Strategy
Gryphon Digital Mining Assigns Captus Agreement Rights
Neutral
Jun 5, 2025

On June 2, 2025, Gryphon Digital Mining, Inc. and its subsidiary assigned their rights and obligations under the Captus Agreement to 2703444 Alberta Ltd., with mutual releases of liabilities. The Captus Management Team’s inducement shares were revoked as part of the agreement, and a conditional payment was arranged based on future power purchase contracts.

Shareholder MeetingsStock SplitBusiness Operations and Strategy
Gryphon Digital Mining Approves Share Increase and Split
Neutral
May 27, 2025

On May 24, 2025, Gryphon Digital Mining held a special meeting where stockholders approved increasing authorized shares from 150 million to 500 million and a reverse stock split with a ratio to be determined by the board. The proposal to declassify the board was not approved, but the issuance of shares upon conversion of a loan was approved, impacting the company’s capital structure and market strategy.

M&A TransactionsBusiness Operations and Strategy
Gryphon Digital Mining Announces Merger with American Bitcoin
Positive
May 12, 2025

On May 9, 2025, Gryphon Digital Mining announced a merger agreement with American Bitcoin Corp., aiming to create a leading Bitcoin mining company. The merger will result in Gryphon stockholders owning approximately 2% of the newly formed company, while American Bitcoin stockholders will own about 98%. The combined entity will operate under the American Bitcoin brand and is expected to trade on Nasdaq under the ticker ‘ABTC’. This strategic move is anticipated to enhance Gryphon’s market position and provide its stockholders with equity in a public vehicle focused on becoming a major player in the Bitcoin mining sector.

Delistings and Listing ChangesRegulatory Filings and Compliance
Gryphon Digital Mining Granted Nasdaq Compliance Extension
Neutral
May 6, 2025

Gryphon Digital Mining received an extension from the Nasdaq Hearing Panel on April 30, 2025, to regain compliance with Nasdaq Listing Rules until September 2, 2025. The extension is contingent on achieving specific milestones, following previous notifications of non-compliance with minimum bid price and market value requirements. The company had appealed the potential delisting of its securities, with a hearing held on April 15, 2025.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 03, 2025