Gryphon Digital Mining(US:GRYP)2025-11-14 11:35Bitcoin Holdings and Mining Operations - As of November 13, 2025, the Company accumulated approximately 4,090 Bitcoin in reserve and owned about 77,944 Bitcoin miners with a cumulative hashrate of 25.0 EH/s and a weighted average fleet efficiency of 16.3 J/TH[184] - The Company operates Bitcoin mining at four sites: Alpha, Medicine Hat, Salt Creek, and Vega, with a fleet upgrade completed on April 4, 2025, resulting in higher efficiency miners[198][197] - As of September 30, 2025, the Company had a cumulative hashrate of 25.0 EH/s, reflecting its operational capacity in Bitcoin mining[184] - The current Bitcoin reward for solving a block is 3.125 Bitcoin, with the next halving event expected in 2028, impacting the number of Bitcoin mined and potentially the Company's operations[203] - The Company accumulated 3,418 Bitcoin in Q3 2025, down from 9,106 Bitcoin in Q3 2024, as it began to build its own strategic Bitcoin reserve[216] - The Company plans to accumulate additional Bitcoin and has established a strategic Bitcoin reserve following the Transactions on April 1, 2025[230] Financial Performance - Revenue for the three months ended September 30, 2025, was $64.2 million, a significant increase of $52.6 million compared to $11.6 million for the same period in 2024, primarily due to improved mining efficiencies and increased Bitcoin production[210][212] - Adjusted EBITDA for the three months ended September 30, 2025, was $27.7 million, compared to a loss of $4.3 million in the same period of 2024, reflecting a positive change of $31.9 million[211] - The total operating income for the three months ended September 30, 2025, was $28.7 million, an increase of $18.1 million compared to $10.6 million in 2024[210] - Revenue for the nine months ended September 30, 2025, was $106.8 million, an increase of $50.9 million from $55.9 million in 2024, primarily due to increased mining efficiencies and the addition of 14.86 EH/s from new miners[221] - Adjusted EBITDA for the nine months ended September 30, 2025, was $(79.7) million, a decrease of $282.6 million compared to $202.9 million in 2024[220] Costs and Expenses - The cost of revenue increased to $28.3 million for the three months ended September 30, 2025, from $11.1 million in 2024, primarily due to higher power costs and increased miner operations[213] - General and administrative expenses rose to $8.1 million in Q3 2025 from $4.8 million in Q3 2024, driven by $5.2 million in transaction costs related to a merger[215] - Cost of revenue increased by $15.7 million to $55.3 million for the nine months ended September 30, 2025, driven by higher consumption from additional miners[222] - General and administrative expenses rose to $26.1 million in 2025 from $23.6 million in 2024, primarily due to $7.5 million in transaction costs related to the Merger[224] Income and Losses - The net income for the three months ended September 30, 2025, was $3.5 million, compared to a net loss of $576,000 in the same period of 2024, marking an improvement of $4.1 million[210] - Losses on digital assets were $5.5 million for Q3 2025, compared to $1.6 million in Q3 2024, attributed to the accumulation of Bitcoin at a higher average cost basis[216] - Loss on digital assets was $114.8 million for the nine months ended September 30, 2025, compared to gains of $201.1 million in 2024, largely due to a decrease in Bitcoin held[225] Cash Flow and Financing - Net cash used in operating activities was $43.1 million for the nine months ended September 30, 2025, a significant improvement from $77.6 million in 2024[236] - Net cash provided by financing activities was $331.9 million for the nine months ended September 30, 2025, primarily from equity sales and the effectuation of the Transactions[238] - The Company issued 159,537,377 shares of Class A common stock for gross proceeds of approximately $220.1 million on June 27, 2025[231] Risks and Strategic Considerations - Power costs are a significant component of the Company's mining expenses and are subject to volatility, impacting profitability[204] - The Company holds Bitcoin with third-party custodians such as Anchorage, Bitgo, and Coinbase, which exposes it to custodian risk due to potential loss or theft of assets[246] - Credit risk arises from pledging Bitcoin as collateral; however, no material loss has been incurred during the nine months ended September 30, 2025[247] - The Company continually assesses credit risk associated with counterparties and may recognize loss provisions if necessary[247] - The Company places cash and demand deposits with financial institutions of high credit standing to mitigate credit risk, but full mitigation cannot be guaranteed[247] - Changes in U.S. trade policy and tariffs could adversely impact the Company's ability to import equipment cost-effectively[248] Corporate Changes - Following the merger with Gryphon on September 3, 2025, Historical ABTC became a wholly owned subsidiary of Gryphon, which was renamed American Bitcoin Corp[184] - The Company launched a 2025 At-The-Market Offering Program, allowing it to offer up to $2.1 billion of Class A common stock; it issued 11,017,341 shares for gross proceeds of $90.0 million at an average price of $8.17 per share before September 30, 2025[184] - The Company’s financial statements are prepared on a standalone basis post-Transactions effective March 31, 2025, reflecting its independent operations[188]