Gryphon Digital Mining, Inc. (NASDAQ: GRYP) has taken a major step toward reducing its electricity costs with the acquisition of a Louisiana bitcoin mining operation that takes advantage of ultra-low-cost electricity at approximately $0.01 per kilowatt-hour (kWh).
Gryphon acquires ultra-low-cost electricity mining business at approximately $0.01 per kWh.
Key highlights include:
• Ultra-low cost of approximately 1 cent per kWh
• Identified a pipeline of 500MW of similar opportunities
• Operating assets that are already generating cash flow and have immediate accretion.
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— Gryphon Digital Mining (@GryphonMining) August 20, 2024
The $1.5 million acquisition includes a Bitcoin mining facility with up to 2.9 megawatts (MW) of operational capacity and 59 PH/s, fully equipped with assets such as gas generators and containers, and is expected to generate approximately $1 million in annual revenue. announcement.
“We see this ultra-low-cost power acquisition as the first step towards establishing over 500MW of similar low-cost generation opportunities,” said Rob Chan, CEO of Gryphon. “In today’s post-halving world, Bitcoin miners are challenged to secure low-cost power to succeed in an increasing global hash rate environment. We believe that the acquisition of this approximately one-cent power asset, along with future generation assets of similar cost, will strengthen Gryphon’s position as a leading low-cost operator with a competitive advantage in the key cost aspects of the Bitcoin mining business.”
Gryphon emphasized its focus on reducing carbon emissions through the use of flare gas in its operations. Flare gas is a by-product of oil extraction that is often burned and released into the atmosphere, but Gryphon reuses it as an energy source for bitcoin mining. By converting gas that would otherwise be wasted into productive energy, Gryphon not only powers its mining operations, but also reduces its environmental impact by eliminating carbon emissions that would otherwise be generated by flaring.
“We are particularly excited about the opportunities that ultra-low-cost power brings,” Chan further stated. “We expect that low-cost power will enable us to potentially use cutting-edge mining equipment to realize greater profits, as well as enable investment recovery on cheaper machines that would not be viable through higher-cost operations. Other possibilities include providing hosting services and high-performance computing operations.”
