Gryphon Digital Mining(US:GRYP)2026-03-27 10:30Bitcoin Holdings and Mining Operations - As of March 25, 2026, the company accumulated approximately 6,963 Bitcoin in reserve, positioning it among the top 16 publicly traded Bitcoin treasury companies based on total Bitcoin holdings[242]. - The company purchased a total of 28,578 Bitcoin miners, increasing its operational fleet to approximately 59,000 miners, representing approximately 25.0 EH/s at an average efficiency of 14.1 J/TH[242]. - The company operated Bitcoin miners at four sites, with a planned fleet upgrade completed in April 2025 to improve efficiency[253][254]. - Bitcoin production increased to 1,789 Bitcoin in 2025 from 1,184 Bitcoin in 2024, with average revenue per Bitcoin mined rising to approximately $103,521[268]. - Bitcoin mined decreased to 1,184 in 2024 from 2,138 in 2023 due to increased network difficulty and the halving event in April 2024[278]. Financial Performance - Revenue for the year ended December 31, 2025 was $185.2 million, a $113.7 million increase from $71.5 million in 2024, driven by improved mining efficiencies and the deployment of Bitcoin miners[268]. - Revenue increased to $71.5 million in 2024 from $65.0 million in 2023, driven by a rise in average revenue per Bitcoin mined to $60,436 from $30,398[278]. - Adjusted EBITDA for 2025 was $(157.3) million, a decrease of $674.9 million from $517.6 million in 2024, impacted by non-recurring transaction costs[267]. - Adjusted EBITDA is used by the company to evaluate financial performance, defined as net loss or income adjusted for various expenses, providing a clearer view of operational performance[262][263]. Costs and Expenses - Cost of revenue increased to $92.0 million in 2025 from $39.5 million in 2024, reflecting higher uptime due to fleet upgrades and new Bitcoin miners[269]. - Cost of revenue decreased to $39.5 million in 2024 from $43.6 million in 2023, primarily due to relocating mining operations to lower-cost sites[279]. - Depreciation and amortization expenses rose to $58.2 million in 2025, up $35.5 million from $22.7 million in 2024, primarily due to increased depreciable asset base from fleet upgrades[270]. - General and administrative expenses decreased slightly to $33.4 million in 2025 from $34.5 million in 2024, mainly due to lower share-based payments[271]. Market and Economic Factors - The current Bitcoin block reward is 3.125 Bitcoin, with the next halving event expected in 2028, which may impact the company's mining revenue[260]. - The company’s business is heavily dependent on Bitcoin prices, which have historically experienced significant volatility, impacting revenue generation[257]. - Power costs are a significant component of the company's mining expenses and can be highly volatile, impacting profitability[261]. Mergers and Offerings - The company completed a merger with Gryphon on September 3, 2025, which was accounted for as a reverse acquisition, renaming Gryphon to American Bitcoin Corp[242]. - The 2025 At-The-Market Offering Program allowed the company to offer and sell up to $2.1 billion of Class A common stock, resulting in gross proceeds of approximately $351.3 million by March 25, 2026[242]. - The company entered into a Controlled Equity Offering Sales Agreement to offer up to $2.1 billion of Class A common stock[288]. Income and Losses - Loss on digital assets was $227.1 million in 2025, compared to a gain of $509.3 million in 2024, attributed to a decline in Bitcoin prices[272]. - Other income increased to $56.7 million in 2025 from $9.3 million in 2024, driven by a significant gain on derivatives[273]. - Income tax benefit for 2025 was $18.1 million, a $77.7 million increase from a provision of $59.6 million in 2024, primarily due to losses on digital assets[274]. - Loss from discontinued operations was nil in 2025, compared to $4.8 million in 2024, following the closure of the Drumheller site[275]. Cash Flow - Net cash used in operating activities was $79.6 million in 2025, reflecting a net loss of $153.2 million[292]. - Net cash used in investing activities totaled $398.3 million in 2025, primarily for Bitcoin purchases amounting to $405.1 million[293]. - Net cash provided by financing activities was $481.7 million in 2025, including $237.7 million from the issuance of Class A common stock[294]. - As of December 31, 2025, the company held 5,401 Bitcoin, with a fair value of approximately $472.6 million[302].