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Gryphon Digital Mining, Inc (GRYP)
:GRYP
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Gryphon Digital Mining
(NASDAQ:GRYP)
45Neutral
Positive Factors
Cost Advantage
With power costs potentially approaching 0.5 cents per kWh, Gryphon could secure the financing needed to develop the site and establish a mining network.
Power Generation Acquisition
Gryphon Digital Mining announced acquiring 100MW and potentially 1GW of natural gas power generation from a Canadian bankruptcy court, which could become a competitive advantage.
Strategic Agreement
Gryphon has a solid strategic perspective and a potential agreement that could move the company closer to the capital it needs to meet timelines.
Negative Factors
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.
Lack of Deals and Customers
There are no closed signed, sealed, and delivered power deal, no financing, and no customers.
Speculative Investment Risks
Investment in Gryphon is considered speculative due to risks associated with volatile cryptocurrencies and other digital activity exposures.
Gryphon Digital Mining (GRYP) vs. S&P 500 (SPY)
Market Cap
$16.37M
Dividend YieldN/A
Average Volume (3M)826.82K
Price to Earnings (P/E)―
Beta (1Y)2.95
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees3
SectorHealthcare
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)-0.60
Shares Outstanding69,346,010
10 Day Avg. Volume1,326,260
30 Day Avg. Volume826,815
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.53
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit-3.77
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
Gryphon Digital Mining Business Overview & Revenue Model
Company DescriptionGryphon 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 MoneyGryphon 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.25
Negative
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.20
Very Negative
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.30
Negative
| Breakdown | ||||
| Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2018 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 6.84M | 10.46M | 17.63M | 15.65M | 0.00 | Gross Profit |
| -6.63M | 1.12M | 5.02M | 5.35M | 0.00 | EBIT |
| -4.49M | -16.05M | -15.89M | -17.50M | -906.17K | EBITDA |
| -7.45M | -41.70M | -19.92M | -29.50M | -906.17K | Net Income Common Stockholders |
| -11.79M | -79.06M | -31.33M | -33.91M | -29.96K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.32M | 7.88M | 13.09M | 18.34M | 4.49K | Total Assets |
| 18.83M | 19.47M | 94.48M | 77.17M | 58.47M | Total Debt |
| 14.87M | 14.61M | 17.30M | 15.60M | 0.00 | Net Debt |
| 13.95M | 6.73M | 4.22M | -2.74M | -4.49K | Total Liabilities |
| 19.43M | 24.29M | 34.53M | 19.64M | 391.74K | Stockholders Equity |
| -599.00K | -4.83M | 59.95M | 57.53M | 58.08M |
| Cash Flow | Free Cash Flow | |||
| 1.12M | -15.28M | -13.63M | -10.57M | -609.02K | Operating Cash Flow |
| 3.01M | -10.90M | -8.17M | -8.71M | -609.02K | Investing Cash Flow |
| -2.25M | -3.97M | -10.49M | -7.14M | -57.50M | Financing Cash Flow |
| -109.00K | 8.64M | 14.74M | 9.53M | 58.09M |
Gryphon Digital Mining Technical Analysis
Neutral
0.24
Price Trends
0.21
Positive
0.32
Negative
0.50
Negative
Market Momentum
0.02
Negative
56.99
Neutral
72.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GRYP, the sentiment is Neutral. The current price of 0.24 is above the 20-day moving average (MA) of 0.18, above the 50-day MA of 0.21, and below the 200-day MA of 0.50, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 56.99 is Neutral, neither overbought nor oversold. The STOCH value of 72.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | $338.10M | 7.63 | 9.19% | ― | 140.56% | ― | |
61 Neutral | $4.62B | 9.74 | 18.84% | ― | 69.38% | 30.30% | |
52 Neutral | $5.38B | 3.59 | -41.63% | 2.87% | 17.72% | 1.87% | |
47 Neutral | $13.14M | ― | -354.87% | ― | 36.02% | 31.41% | |
45 Neutral | $16.37M | ― | 173.25% | ― | ― | ― | |
39 Underperform | $15.49M | ― | 22.29% | ― | -15.42% | 60.06% | |
37 Underperform | $23.86M | ― | 242.25% | ― | ― | ― |
* Healthcare Sector Average
Performance Comparison
GRYP
Gryphon Digital Mining
0.24
-1.31
-84.52%
GREE
Greenidge Generation Holdings
1.08
-1.24
-53.45%
MARA
Marathon Digital Holdings
14.05
-3.02
-17.69%
BTBT
Bit Digital
2.07
-0.08
-3.72%
MIGI
Mawson Infrastructure Group
0.70
-0.54
-43.55%
ARBK
Argo Blockchain
0.40
-0.99
-71.22%
Gryphon Digital Mining Earnings Call Summary
Earnings Call Date:Mar 31, 2025
(Q4-2024)
| % Change Since: 41.18%|
Next Earnings Date:May 19, 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 Corporate Events
Delistings and Listing ChangesLegal ProceedingsBusiness Operations and Strategy
Gryphon Digital Mining Faces Nasdaq Delisting Challenge
Negative
Mar 11, 2025
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.
M&A Transactions
Gryphon Digital Mining Terminates Purchase Agreement with Erikson
Neutral
Mar 3, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.