Gryphon Digital Mining Acquires Bitcoin Mining Operations at Low Price of $0.01/kWh

Gryphon Digital Mining, Inc. (NASDAQ: GRYP) has taken a big step in reducing electricity costs by acquiring Bitcoin mining operations in Louisiana that use ultra-low-cost electricity at around $0.01 per kilowatt hour (kWh).

Gryphon acquires ultra-low cost energy mining operations at ~$0.01/kWh.

The most important aspects include:

• Ultra-low cost of ~ 1 cent per kWh
• Identifying a 500 MW pipeline of similar opportunities
• Immediate accrual operating asset that is already generating cash flows

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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 generators and gas energy containers and is expected to generate approximately $1 million annually. income, according to the announcement.

“We believe this ultra-low-cost power acquisition is our first step on an identified path of more than 500 MW of similar low-cost power generation opportunities,” said Gryphon CEO Rob Chang. “Today’s post-halving world requires bitcoin miners to secure energy at low cost to thrive in a global environment of rising hashrates. With the acquisition of this ~1 cent power asset and future power generation assets of similar cost, we believe Gryphon will enhance its position as a leading low-cost operator with a competitive advantage in a key aspect of cost from the bitcoin mining business.”

Gryphon reiterated its commitment to reducing carbon emissions through the use of flue gases in its operations. Flue gas, a byproduct of oil extraction that is often burned and released into the atmosphere, is reused by Gryphon as an energy source for Bitcoin mining. By turning this otherwise wasted gas into productive energy, Gryphon not only powers its mining operations, but also mitigates its environmental impact by reducing the carbon emissions that would have been generated through combustion.

“We are particularly excited about the opportunities that ultra-low-cost energy presents us,” Chang added. “We expect low-cost energy to enable higher margins using state-of-the-art mining equipment, or to enable return on investment on cheaper machines that are not economically viable at higher-cost operations. Other possibilities include hosting services or providing high performance. calculation operations”.