Gryphon Digital Mining, Inc. (NASDAQ: GRYP) has taken a major step in reducing energy costs by acquiring Bitcoin mining operations in Louisiana that benefit from extremely low-cost electricity at around $0.01 per kilowatt-hour (kWh).
Gryphon has acquired ultra-low-cost energy mining operations at around $0.01/kWh.
Highlights include:
• Very low cost of about 1 cent per kilowatt-hour
• A 500 MW pipeline of similar opportunities has been identified.
• An operating asset that provides immediate value and already generates cash flows.Reads… pic.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, comes fully equipped with assets including gas turbines and containers, and is expected to generate approximately $1 million in annual revenue, according to advertisement.
“We believe this ultra-low-cost power acquisition is our first step on a path to over 500 megawatts of similar low-cost power generation opportunities,” said Gryphon CEO Rob Chang. “The post-halving world requires bitcoin miners to secure low-cost power in order to thrive in an increasingly hashrate-driven global environment. With the acquisition of this one-cent power asset and future power generation assets at similar costs, we believe Gryphon will further strengthen its position as a leading low-cost operator with a competitive advantage in a key cost aspect of the bitcoin mining business.”
Gryphon has confirmed that it is committed to reducing its carbon emissions by utilizing flare gas in its operations. Flare 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 converting this waste gas into productive energy, Gryphon not only powers its mining operations but also mitigates its environmental impact by reducing the carbon emissions that would otherwise be generated from flare gas.
“We are particularly excited about the opportunities that ultra-low-cost power can provide us,” Chang added. “We expect low-cost power to enable higher margins with modern mining equipment or enable a return on investment in cheaper machines that are not economically feasible in higher-cost operations. Other possibilities include hosting services or providing high-performance computing.”
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