Gryphon Digital Mining, Inc. (NASDAQ: GRYP) has taken a major step toward lowering its energy costs by acquiring Bitcoin mining operations in Louisiana. These mining operations use extremely cheap electricity, at a rate of approximately $0.01 per kilowatt hour (kWh).
Gryphon acquires ultra low-cost power mining operations for ~$0.01/kWh.
Key highlights include:
• Ultra low costs of ~ 1 cent per kWh
• A pipeline of 500 MW of similar opportunities identified
• Directly profitable operating assets that are already generating cash flowReading… photo.twitter.com/DKNQnjzZJl
— Gryphon Digital Mining (@GryphonMining) August 20, 2024
The $1.5 million acquisition, which includes up to 2.9 megawatts (MW) of operating capacity and 59 PH/s of Bitcoin mining equipment, is fully equipped with assets including gas generators and containers and is expected to generate approximately $1 million in annual revenue, the announcement.
“We believe this acquisition of ultra low-cost power is our first step on an identified path to over 500MW of similar low-cost power generation capabilities,” said Gryphon CEO Rob Chang. “Today’s post-halving world requires bitcoin miners to secure low-cost power 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 strengthen its position as a leading low-cost operator with a competitive advantage in a key cost aspect of the bitcoin mining business.”
Gryphon emphasized that it is committed to reducing carbon emissions by using flare gas in its operations. Flare gas, a byproduct of oil extraction that is often burned and emitted 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 its environmental impact by reducing the carbon emissions that would have been generated by flaring.
“We are particularly excited about the opportunities that ultra low-cost power can bring to us,” Chang said. “We expect low-cost power to provide the ability to achieve higher margins using state-of-the-art mining equipment or to enable returns on investments in lower-cost machines that are not economically viable in higher-cost operations. Other opportunities include hosting services or delivering high-performance computing operations.”