Gryphon Digital Mining, Inc. (GRYP)·Q1 2025 Earnings Summary

Executive Summary

• Q1 2025 was severely impacted by April 2024’s block reward halving and a higher global hashrate: mining revenue fell to $1.56M (-79% YoY), with 17 BTC mined vs 142 a year ago; net loss was $6.28M (EPS $(0.09)) as breakeven cost/coin rose to $120,117 amid higher power costs .
• Operations pivoted: 6,719 miners were deployed to Mawson’s Pennsylvania facility by quarter-end, while the Blockfusion site was suspended on April 15 to renegotiate terms for profitability; management continues to rework hosting agreements to lower power intensity and profit-share exposure .
• Balance sheet and capital actions: cash was $0.32M (excl. $1.26M restricted); Q1 financing included ~$2.10M registered direct and ~$2.41M ATM proceeds; the Sphere 3D dispute was settled, eliminating ~$449k of payables; 1,900 additional miners were acquired in January to lift fleet scale .
• Strategic catalysts: a signed merger agreement with American Bitcoin (May 9) and a Nasdaq compliance extension to Sept 2, 2025 frame the path forward; management is pursuing AI/HPC power assets (Captus) and re-optimizing hosting, which are likely near-term stock reaction drivers as updates are disclosed .

What Went Well and What Went Wrong

What Went Well

• Settled Sphere 3D litigation, removing ~$449k of liabilities; recognized a gain on settlement in Q1, simplifying the legal overhang .
• Reduced non-operating drags vs. last year: no fair value hit from the prior BTC-denominated note in Q1 2025 (note was restructured in Oct 2024), contributing to a materially lower “other expense” line YoY .
• Executing on fleet scaling and redeployment: delivered 6,719 miners to Mawson by Mar 31 and added 1,900 S19JPro units in January to strengthen capacity and improve unit economics under reworked power arrangements .

Management quotes (latest available):

• “We believe that the currency of the next decade will be power… the rapid advancement of artificial intelligence is driving an explosion in demand for high-performance computing infrastructure.” — CEO Steven Gutterman (Q4 call) .
• “Captus would position us to become one of the largest dedicated HPC and AI computing infrastructure providers with up to 4 gigawatts of potential power.” — CEO Steven Gutterman (Q4 call) .

What Went Wrong

• Revenue and production fell sharply: 17 BTC mined in Q1 vs 142 a year ago; revenue dropped 79% YoY as halving and higher network hashrate reduced output despite higher BTC prices .
• Cost pressure: breakeven cost/coin surged to $120,117 (from $34,070 YoY) with average power costs up to $0.108/kWh (peaking at $0.156 in January), compressing gross economics .
• Operational disruption and one-time costs: Blockfusion operations were suspended mid-April for economic reasons; Q1 included $1.19M M&A costs from canceled transactions; going concern language and low quarter-end cash underscore funding dependence .

Financial Results

Income summary (oldest → newest)

Per-share and bottom line (oldest → newest)

Note: The Q4 press release text states “net income of $0.4 million,” while the reconciliation table shows “net loss $401,000”; management has not reconciled the discrepancy in that document .

Key KPIs (oldest → newest)

Additional operating context:

• Average power cost rose to $0.108/kWh in Q1 (vs $0.0817/kWh in Q1 2024), peaking at $0.156/kWh in January as network hashrate climbed 6.6%, 4.4%, 16.9% and 9.2% over the last four quarters .
• Miners installed (carrying amount context): 8,825 units as of Dec 31, 2024; 10,725 as of Mar 31, 2025 .

Estimates vs. actuals (S&P Global):

• Wall Street consensus was unavailable for GRYP in S&P Global’s system (no CIQ mapping), so no estimate comparison is provided for Q1 2025 [GetEstimates error].

Guidance Changes

No explicit numerical revenue/EPS/capex/tax guidance was issued for Q1 2025 in primary documents .

Earnings Call Themes & Trends

(Using Q3–Q4 2024 calls for prior context; Q1 2025 had no call transcript available.)

Management Commentary

• Strategic shift: “Our corporate focus has shifted… Bitcoin mining as a revenue bridge… develop world-class power assets that can be used to operate HPC and AI data centers.” — CEO Steven Gutterman (Q4 call) .
• Captus rationale: “An ideal site… access to natural gas, grid for redundancy… nonpotable water and on-site carbon sequestration… aim to bring the first 130 megawatts online in 2026 with opportunity to expand up to 4 gigawatts.” — CEO Steven Gutterman (Q4 call) .
• Connectivity: “We actually have fiber from Rogers and TELUS extremely close… about an hour outside Calgary… great latency… one of the reasons we picked it.” — CEO Steven Gutterman (Q4 call) .

Q&A Highlights

• Captus execution: Questions focused on latency, customer pipeline, and capital plan. Management cited nearby fiber backbones and staged financing with project partners, sequencing 6MW → 30MW → 100MW development post-closing .
• Portfolio pruning: On British Columbia (Erikson), the original broader asset deal was terminated; the team is evaluating a subset of wells with better production/liability profiles .
• Cost structure and hosting: Analysts probed profit-share exposure and relocation timing; management intends to reduce variable profit-share, improve fixed power pricing, and redeploy miners to lower-cost sites .

Note: A Q1 2025 call transcript was not available; items above reflect the most recent (Q4 2024) Q&A for context .

Estimates Context

• S&P Global consensus estimates were not available for GRYP (no CIQ mapping in the S&P system), so we cannot provide EPS/revenue estimate comparisons or revisions for Q1 2025 or FY 2025 at this time [GetEstimates error].
• Given the absence of consensus, investors should anchor on reported Q1 actuals and management’s operational updates pending broader analyst coverage .

Key Takeaways for Investors

• Near-term fundamentals are challenging: a 79% YoY revenue decline and higher breakeven costs reflect the post-halving environment and elevated power/network difficulty; production fell to 17 BTC, spotlighting the urgency of lower-cost power and better hosting terms .
• Cost reset in motion: Blockfusion suspension/rework and Mawson fleet deployment aim to structurally lower unit costs (and reduce profit-share sensitivity) in coming quarters .
• Liquidity remains tight: $0.32M cash at quarter-end and going concern language mean continued reliance on equity/ATM and asset-level financing until operations or AI/HPC transitions materially change cash generation .
• Strategic optionality: The ABTC merger and Captus/HPC initiative (plus BTC reserve program) provide multiple strategic paths; execution milestones and financing disclosures will be key stock catalysts .
• Legal risk reduced: Sphere 3D settlement eliminates a dispute and contributed a $449k gain, cleaning up the operating backdrop .
• Watch power prices and network hashrate: Q1 average power cost rose to $0.108/kWh (peaking $0.156 in Jan), and network hashrate increases continue to pressure output per MW; tracking these exogenous variables is critical for modeling .
• Fleet scale and mix evolving: 1,900 miners were added in January; redeployment and potential future upgrades should be assessed against hosting terms and expected breakeven trajectories .

Appendix: Prior-Period References

• Q4 2024 8-K and call provided context on net results (noting an inconsistency between text and reconciliation table) and articulated the AI/HPC roadmap, including staged Captus development .
• Q3 2024 press release and call detailed pre-restructuring cost structure, intent to relocate to lower-cost power, and highlighted breakeven and production levels pre-halving .