Gryphon Digital Mining, Inc. (NASDAQ: GRYP) has taken a big step in lowering its power costs by acquiring Bitcoin mining operations in Louisiana that leverage ultra low-cost electricity at approximately $0.01 per kilowatt hour (kWh).
Gryphon Acquires Ultra Low-Cost Power Mining Operations at ~$0.01/kWh.
Key highlights include:
• Ultra-low cost of ~ 1 cent per kWh
• Identified a pipeline of 500 MW of similar opportunities
• Immediately accretive operating asset that is already generating cash flow
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— Gryphon Digital Mining (@GryphonMining) August 20, 2024
This $1.5 million acquisition, which includes up to 2.9 megawatts (MW) of operational capacity and 59 PH/s of Bitcoin mining equipment, comes fully equipped with assets, including gas power generators and containers, and is expected to generate about $1 million in annual revenue, according to the announcement.
“We believe that this acquisition of ultra low-cost power is our first step along an identified path of over 500 MW of similar low-cost power generation opportunities,” said Gryphon CEO Rob Chang. “The current post halving world is requiring bitcoin miners to secure low-cost power in order to thrive in an increasing global hashrate environment. With the acquisition of this ~1 cent power asset and future power generation assets with similar costs, we believe Gryphon will enhance its position as a leading low-cost operator with a competitive advantage in a key cost aspect of the bitcoin mining business.”
Gryphon reinforced that it is committed to reducing carbon emissions by utilizing flare gas in its operations. Flare gas, a byproduct of oil extraction that is often burned off and released into the atmosphere, is repurposed by Gryphon as an energy source for Bitcoin mining. By converting this otherwise wasted gas into productive energy, Gryphon not only powers its mining operations but also mitigates environmental impact by lowering the carbon emissions that would have been generated through flaring.
“We are particularly excited about the opportunities ultra low-cost power can afford us,” further stated Chang. “We expect that low-cost power will allow for the possibility of greater margins using state of the art mining equipment or enabling return on investment on cheaper machines that are not economically viable at higher cost operations. Other possibilities include hosting services or providing high performance computing operations.”
