Gryphon Digital Mining(GRYP) - 2024 Q2 - Quarterly Results

Financial Performance - Gryphon reported total mining revenue of $5.5 million in Q2 2024, a 12.2% increase from $4.9 million in Q2 2023[2]. - Mining activities revenue for Q2 2024 reached $5,515,000, an 11% increase from $4,963,000 in Q2 2023[15]. - Total revenues for the first half of 2024 were $13,005,000, compared to $10,359,000 in the same period of 2023, reflecting a 25.5% growth[15]. - The company recognized a net loss of $4.0 million in Q2 2024, compared to a net loss of $2.6 million in Q2 2023[3]. - The net loss for Q2 2024 was $4,009,000, compared to a net loss of $2,623,000 in Q2 2023, indicating a 52.7% increase in losses[15]. - Net loss for the six months ended June 30, 2024, was $15,753,000, compared to a net loss of $9,533,000 for the same period in 2023, representing a 65.5% increase in losses[17]. Operational Metrics - The company achieved a quarterly hashrate of 899 PH/s in Q2 2024, representing a 20% increase compared to Q2 2023[1]. - Breakeven cost per bitcoin in Q2 2024 was $45,452, up from $34,063 in Q2 2023, indicating increased operational costs[2]. - The company mined approximately 84 bitcoins in Q2 2024, down from 187 bitcoins in Q2 2023[4]. - Gryphon completed its miner upgrade program ahead of schedule, adding approximately 23 PH/s to its hashing power[3]. Expenses and Liabilities - Total operating expenses for Q2 2024 were $11,381,000, up from $7,967,000 in Q2 2023, representing a 42.5% increase[15]. - Current assets decreased to $3,244,000 as of June 30, 2024, down from $5,398,000 at the end of 2023, a decline of 39.9%[14]. - Total liabilities increased to $25,439,000 as of June 30, 2024, compared to $19,433,000 at the end of 2023, marking a 30.9% rise[14]. - The accumulated deficit grew to $(62,189,000) as of June 30, 2024, up from $(47,175,000) at the end of 2023, reflecting a 31.8% increase[14]. Cash Flow and Investments - Cash provided by operating activities was $(782,000) for the six months ended June 30, 2024, compared to $2,676,000 in the same period of 2023, indicating a significant decline in cash flow[17]. - Cash used in investing activities was $(954,000) for the first half of 2024, compared to $(1,902,000) in the same period of 2023, indicating a decrease of 49.9%[17]. - The company reported proceeds from the sale of digital assets of $12,969,000 for the first half of 2024, up from $9,155,000 in the same period of 2023, reflecting a 41.5% increase[17]. - Total cash at the end of the period was $1,219,000, an increase from $980,000 at the end of the same period in 2023[17]. Stock and Shareholder Actions - The company has authorized a stock repurchase program of up to $5 million to enhance shareholder value[3]. - The weighted average shares outstanding increased to 38,943,579 in Q2 2024 from 14,431,384 in Q2 2023, a growth of 170.5%[15]. - The company has issued common stock for cash totaling $1,395,000 during the reporting period[16]. - The company raised $2,054,000 from the issuance of common stock during the first half of 2024, with no such activity reported in the same period of 2023[17]. - Cash expenses for the issuance of common stock were $235,000 in the first half of 2024, with no expenses reported in the same period of 2023[17]. - The company reported a fair value of common stock issued to consultants amounting to $1,447,000 for the first half of 2024, compared to $126,000 in the same period of 2023, reflecting a substantial increase[17]. Market Position and Future Outlook - Gryphon qualified for inclusion in the Russell Microcap Index effective July 1, 2024[3]. - The company is focusing on acquiring low-cost power to ensure long-term success in bitcoin mining[2]. - The company reported a significant unrealized loss of $318,000 on digital assets in Q2 2024, compared to no loss in Q2 2023[15]. - Unrealized loss on digital assets amounted to $1,385,000 for the first half of 2024, while the company reported no unrealized gains in the same period of 2023[17]. - The company incurred depreciation expense of $6,539,000 for the first half of 2024, down from $7,839,000 in the same period of 2023, showing a 16.5% reduction[17].