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    American Bitcoin Corp. /DE/ (GRYP)

    GRYP Q3 2024: Pivot to HPC/AI hosting to diversify revenue

    Reported on May 12, 2025 (After Market Close)
    Pre-Earnings Price$0.76Last close (Nov 13, 2024)
    Post-Earnings Price$0.77Open (Nov 14, 2024)
    Price Change
    $0.01(+0.98%)
    • Cost Optimization: Management is actively evaluating lower-cost power alternatives—having noted recent power costs averaging $0.062–$0.063/kWh and planning a relocation update by year-end—which could bolster margins as they secure more affordable power sources.
    • Efficient Operational Positioning: The Q&A highlighted that even with a mix of fixed and profit-sharing contracts, the current fleet is effective; with Bitcoin prices above $65,000, they are breaking even and positioned to capture upside at higher prices (e.g., around $90,000), indicating resilient operational efficiency in a favorable market.
    • Strategic Expansion into HPC & AI Hosting: Management confirmed plans to add power and HPC experts to facilitate a transition into high-performance computing for AI—presenting an opportunity to diversify revenue streams and tap into a rapidly growing market segment.
    • Fleet transition uncertainty: The Q&A highlighted ongoing efforts to relocate the fleet to secure lower power costs, but the timeline is uncertain, raising concerns over potential operational disruptions in the near term.
    • Rising power costs: Analysts noted that average power costs increased from $0.058–$0.059 to about $0.062–$0.063 per kilowatt hour, which could pressure margins and impact profitability.
    • Cost sensitivity to Bitcoin price: Part of GRYP's contract involves profit sharing that escalates with rising Bitcoin prices. This structure means that as Bitcoin increases, the costs follow suit, potentially compressing margins.
    1. Production Outlook
      Q: What’s your production forecast this quarter?
      A: Management expects production to remain steady as the current Coinmint agreement runs through year-end, ensuring continuity despite upcoming infrastructure changes.

    2. Power Costs
      Q: Have your power costs changed recently?
      A: Costs have modestly increased to an average of $0.062–$0.063/kWh from around $0.058–$0.059/kWh, reflecting market adjustments.

    3. Profit Share Impact
      Q: Does higher Bitcoin pricing affect your expenses?
      A: A portion of the contract is fixed while another has a profit share, so rising Bitcoin prices lead to increased costs due to the profit share structure.

    4. Fleet Efficiency
      Q: Is your current mining fleet efficient?
      A: The fleet, comprising roughly 6,000 S19j Pros, is expected to remain efficient with full depreciation over the next 12 months and performs well even at higher Bitcoin prices.

    5. HPC Facility
      Q: Are you developing a new facility for HPC/AI?
      A: No new facility is being converted; instead, the focus is on identifying external spaces for launching AI services, leveraging existing mining strengths.

    6. Update Timing
      Q: When will further relocation news be announced?
      A: Management has committed to providing an update on fleet relocation by the end of the year.

    7. Board Expertise
      Q: What value does Dan bring to your board?
      A: Dan, with extensive mining expertise from Anchorage, offers strategic insights on cost efficiencies and power sourcing, reinforcing the company’s financial transformation.

    8. Team Expansion
      Q: Will you add specialists for HPC and power?
      A: Yes, as power deals are secured, the plan is to recruit power and HPC experts with over 20 years’ experience to support the AI hosting strategy.

    Research analysts covering American Bitcoin Corp. /DE/.