Gryphon Digital Mining Inc.

Key Reasons for Speculative Buy

• Gryphon Digital Mining to Merge with American Bitcoin Corp. in Strategic Stock-for-Stock Deal: GRYP announced that it has signed a definitive merger agreement with American Bitcoin Corp., a Bitcoin accumulation platform dedicated to developing the nation’s Bitcoin infrastructure. Under the terms of the stock-for-stock transaction, Gryphon will acquire American Bitcoin. Following the merger, the combined entity will operate under the American Bitcoin brand, with American Bitcoin’s management team and board of directors at the helm. The new company will trade on Nasdaq under the ticker symbol ‘ABTC’.
• Public Listing and Executive Team Strengthening: Gryphon Digital Mining (NASDAQ: GRYP), a company innovating in bitcoin mining, high-performance computing (HPC), and AI, announced today its financial results for the fourth quarter and full year ended December 31, 2024. The year marked a period of significant transformation for the Company, highlighted by its public listing on NASDAQ in February 2024. This milestone was followed by a strategic reshaping of the leadership team in the third quarter, including the appointment of a new CEO, retention of the CFO, and the addition of a Senior Vice President of Energy Strategy and new board members, all contributing to strengthened executive capabilities.
• Operational and Strategic Initiatives: The latter part of 2024 saw Gryphon initiate and execute a series of key operational and strategic actions designed to improve the Company’s financial structure and market position. These included a successful refinancing of debt, an equity raise with participation from both management and the board, and the signing of a definitive agreement to acquire Captus Energy, a scalable 4GW HPC/AI asset based in Alberta. Gryphon views the Captus Energy Acquisition as a pivotal step, offering substantial long-term growth potential and aligning with the Company’s strategy to diversify and scale its operations.
• Fourth Quarter Financial Performance and Improvements: The fourth quarter of 2024 marked a period of substantial financial improvement. Gryphon more than doubled its cash and cash equivalents from USD 368,000 to USD 735,000, converted USD 13 million of debt to equity, and improved its shareholder equity deficit from (USD 18.9 million) to (USD 7.0 million). The average daily trading volume of its stock also increased significantly, rising from approximately 249,000 shares in Q3 to 874,000 shares in Q4. These results reflect enhanced investor confidence and a stronger financial foundation heading into 2025.
• Debt Reduction and Strategic Financing: In a major financial restructuring, Gryphon reduced its total debt by over 70% through a combination of debt-to-equity conversion and favorable refinancing terms. Notably, USD 13 million of debt held by Anchorage Digital was converted into equity and pre-funded warrants. An additional USD 5 million in debt was restructured, and Anchorage was issued warrants for 2 million shares at USD 1.50 per share, becoming Gryphon’s largest shareholder and gaining a board seat. The Company also closed a non-brokered USD 2.85 million financing round, with full participation from management and a majority of the board.
• Mining Operations and Cost Management: Gryphon reported mining revenues of USD 3.845 million for Q4 2024, a modest increase from USD 3.689 million in the previous quarter. The Company mined approximately 61 Bitcoin in the quarter, down from 176 in Q4 2023, with a breakeven cost per Bitcoin of USD 75,872 compared to USD 23,902 in the same quarter the previous year. Gryphon emphasized its focus on operational cost discipline, noting that cash payroll expenses represented just 6.5% of total revenue, well below its target of 10%.
• Balance Sheet Overview and Forward Outlook: As of December 31, 2024, Gryphon reported total assets of USD 7.6 million, including USD 0.7 million in cash, USD 1.0 million in Bitcoin, and USD 3.6 million in mining-related assets. Total liabilities stood at USD 14.6 million, with current liabilities at USD 9.3 million. Looking ahead, the Company is focused on closing the Captus Energy Acquisition and advancing the development of that asset. Gryphon anticipates that this acquisition will serve as a launchpad for future growth and value creation, reinforcing its commitment to delivering long-term returns to shareholders.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Speculative Buy’ rating has been given to Gryphon Digital Mining, Inc (NASDAQ: GRYP) at the closing market price of USD 1.17 as of June 09,2025.