Executive Summary

Q3 2024 mining revenues were $3.69M, down from $5.48M in Q3 2023, while net loss narrowed to $5.95M from $8.09M YoY; adjusted EBITDA improved to -$2.45M from -$4.73M YoY .
Breakeven cost per Bitcoin spiked to $59,213 vs. $22,625 last year, reflecting the 2024 halving and higher global hashrate; the company mined 61 BTC vs. 176 BTC in Q3 2023 .
Management emphasized a transformative debt restructuring with Anchorage: ~$13M converted to equity at ~~100% premium and remaining $5M at 4.25% interest, materially improving flexibility and cash outflows (~~$17.7K/month) .
Catalysts into Q4/Q1: pending fleet relocation to lower-cost power (targeting static $0.06–$0.04/kWh and selective ~$0.01/kWh opportunities) and strategic expansion into AI/HPC hosting, with updates promised by year-end .
No formal revenue/EPS guidance; Wall Street consensus via S&P Global was unavailable for GRYP due to mapping limitations (estimates not retrieved).

What Went Well and What Went Wrong

What Went Well

Adjusted EBITDA improved materially YoY to -$2.45M from -$4.73M; EBITDA also improved to -$2.76M from -$3.86M, reflecting cost discipline despite revenue pressure .
Strategic balance sheet actions: ~$13M debt converted to equity at ~100% premium; remaining $5M at 4.25% interest-only over 3 years, reducing monthly interest to ~$17.7K and eliminating prior cash/BTC sweeps .
Clear AI/HPC strategy articulation: leveraging mining infrastructure and low-cost power sourcing to diversify into high-performance compute hosting, with management committing to near-term execution .

What Went Wrong

Revenue contraction and BTC production decline: mining revenues fell to $3.69M (from $5.48M total revenues in Q3 2023) and BTC mined dropped to 61 (from 176) amid halving and rising network hashrate .
Operating costs vs. output: breakeven cost per BTC rose sharply to $59,213 (from $22,625), compressing margins; profit-sharing hosting terms also raise costs as BTC price rises .
Limited cash reserves at quarter-end ($0.37M) and current liabilities of $26.41M (prior to successful post-quarter refinancing), highlighting near-term liquidity/operational execution risks .

Financial Results

Consolidated YoY Comparison

Metric	Q3 2023	Q3 2024
Total Revenues ($USD Millions)	$5.477	$3.689
Net Loss ($USD Millions)	$(8.086)	$(5.948)
Diluted EPS ($USD)	$(0.56)	$(0.15)
EBIT (Loss from Operations) ($USD Millions)	$(9.198)	$(5.445)
EBITDA ($USD Millions)	$(3.857)	$(2.764)
Adjusted EBITDA ($USD Millions)	$(4.732)	$(2.452)
Total Operating Expenses ($USD Millions)	$14.675	$9.134

Segment Revenue Breakdown

Revenue Segment ($USD Millions)	Q3 2023	Q3 2024
Mining Activities	$5.189	$3.689
Management Services	$0.288	$0.000
Total Revenues	$5.477	$3.689

KPIs

KPI	Q3 2023	Q3 2024
Bitcoin Mined (units)	176	61
Breakeven Cost per Bitcoin ($)	$22,625	$59,213
Value per Mined Bitcoin ($)	$29,483	$60,475
Cost of Revenues excl. Depreciation ($USD Millions)	$3.982	$3.612

Note: Average BTC price noted on the call was $59,224 for Q3 2024, consistent with the elevated breakeven context .

Balance Sheet Highlights (Quarter-End)

Metric	Q3 2024
Cash and Cash Equivalents ($USD Millions)	$0.368
Digital Assets (Bitcoin) ($USD Millions)	$0.616
Total Current Assets ($USD Millions)	$1.688
Total Liabilities ($USD Millions)	$26.408

Subsequent event: ~$19M BTC-denominated note refinanced into equity plus $5M note at 4.25% (post-quarter) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	Q4 2024–Q1 2025	None provided	None provided	Maintained: No formal guidance
EPS	Q4 2024–Q1 2025	None provided	None provided	Maintained: No formal guidance
Power Costs/Hosting Terms	Q4 2024	Variable with profit share; Q2 ~$0.058–$0.059/kWh	Q3 ~$0.062–$0.063/kWh; pursuing static $0.06–$0.04/kWh arrangements; selective ~$0.01/kWh opportunity	Strategy shift toward lower-cost/static deals
Fleet Relocation	By year-end 2024	No prior commitment	Definitive update on relocation by end of year	New commitment
AI/HPC Hosting	2025 build-out	Discussed strategically	Pursue near-term hosting initiatives; organic and M&A paths	Execution focus increased

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q3 2024)	Trend
AI/HPC Initiatives	Not available in our document set	Clear strategy to leverage low-cost power + computing infrastructure; near-term execution via hosting; potential M&A	Increasing strategic emphasis
Power Costs / Hosting Structure	Not available in our document set	Q3 power ~$0.062–$0.063/kWh vs. Q2 ~$0.058–$0.059; profit-sharing raises cost as BTC price rises; targeting static deals	Active transition to lower-cost/static
Fleet Relocation	Not available in our document set	Committed to announcing relocation by year-end; Louisiana ~$0.01/kWh site is smaller; broader relocation in-flight	Imminent operational shift
Balance Sheet / Debt	Not available in our document set	~$13M debt converted to equity at ~100% premium; $5M note at 4.25%; ~ $17.7K monthly interest	Materially improved flexibility
Network Hashrate / Production	Not available in our document set	Global hash rate assumptions rising; production stable near ~30MW but focus on economics via power terms	Navigating halving + rising hash

Management Commentary

“We completed what we believe is a transformative debt restructuring with Anchorage Digital… converting $13 million of debt to equity at a substantial premium… and restructuring the remaining $5 million on highly favorable terms” .
“We expect that our enhanced financial flexibility and focus on securing low-cost power deals position us to expand our Bitcoin mining operations while pursuing breakthrough opportunities in AI computing” .
“This is not some disconnected pivot… securing low cost power, plugging computers into that power… is equally applicable to Bitcoin mining and to AI computing” .
“We will definitively have an update on where we are taking our fleet… by the end of the year” .

Q&A Highlights

Power cost dynamics: Q3 power averaged ~$0.062–$0.063/kWh vs. Q2 ~$0.058–$0.059/kWh; profit-sharing terms increase costs as BTC price rises, prompting pursuit of static lower-cost contracts .
Average BTC price in Q3: $59,224, anchoring breakeven and revenue context .
Fleet relocation: Management committed to provide a definitive update before year-end; Louisiana ~$0.01/kWh site is smaller, broader relocation expected .
Production outlook and efficiency: With ~30MW and current fleet, profitability improves under static lower-cost power; current fleet ~6,000 S19j Pros, still viable with BTC ≥$65K .
Anchorage partnership: Debt transition and Board addition (Dan Grigorin) viewed as strategic, providing industry insights and sourcing .

Estimates Context

Wall Street consensus via S&P Global was unavailable for GRYP due to missing CIQ mapping (no estimates retrieved). As a result, we cannot quantify beats/misses vs. consensus for Q3 2024.
Given the lack of formal revenue/EPS guidance and unavailable consensus, near-term revisions will likely hinge on power cost updates, fleet relocation timing, and any AI/HPC contract announcements .

Key Takeaways for Investors

Near-term catalysts: definitive fleet relocation update by year-end and any AI/HPC hosting wins; both could materially reset unit economics and narrative .
Cost structure pivot underway: moving from variable/profit-share to lower/static power rates ($0.06–$0.04/kWh, selective ~$0.01/kWh) to restore margins post-halving and rising global hashrate .
Balance sheet improved: conversion and refinancing reduce cash drag and add strategic alignment with Anchorage; supports growth optionality without equity-dilutive cash sweeps .
Operating trajectory: despite YoY revenue and BTC mined declines, adjusted EBITDA improved; execution on power and site transition is the key driver of further margin recovery .
Strategic diversification: AI/HPC hosting can add a second growth vector leveraging existing competencies; watch for team build-out and contract visibility .
Liquidity watch: modest cash balances at quarter-end heighten the importance of smooth relocation/contracting and minimizing downtime .
Data gaps: No formal guidance and unavailable S&P Global consensus constrain near-term estimate benchmarking; expect models to flex after power and relocation disclosures.

Discrepancies and Clarifications

Breakeven cost per BTC: press release cited $59,213 vs. call commentary citing the halving/hashrate impact; both align directionally; Q3 2023 breakeven cost cited as $22,625 (press) vs. $21,501 (call), indicating minor methodological differences .
Value per mined Bitcoin vs. average price: press release shows $60,475 (Q3 2024), while the call noted $59,224; differences likely reflect period-end valuation methodologies vs. average realized prices .

Gryphon Digital Mining, Inc. (GRYP)·Q3 2024 Earnings Summary