Gryphon Digital Mining (GRYP) Q1 2025 earnings summary

Executive summary

• Revenue from mining activities fell 79% year-over-year to $1.56M, driven by a 50% reduction in block rewards and a 42% increase in global hashrate, despite a higher average bitcoin price and more operational miners.

• Net loss improved to $6.28M from $11.74M year-over-year, reflecting lower costs and the absence of large non-cash charges seen in the prior year.

• The company completed a reverse merger with Akerna in February 2024, shifting its focus entirely to bitcoin mining.

• A merger agreement with American Bitcoin Corp. (ABTC) was signed in May 2025, with Gryphon shareholders expected to own 2% of the combined company post-merger.

• Operations were impacted by high energy costs and industry hash rates, leading to the suspension of mining at Blockfusion in April 2025.

Financial highlights

• Mining revenues: $1.56M for Q1 2025, down from $7.49M in Q1 2024.

• Net loss: $6.28M for Q1 2025, improved from $11.74M in Q1 2024.

• Adjusted EBITDA: $(4.37)M for Q1 2025, compared to $1.90M in Q1 2024.

• Cash and equivalents: $318K as of March 31, 2025, with $1.26M in restricted cash.

• Cost to mine one bitcoin rose to $120,117 in Q1 2025 from $34,070 in Q1 2024.

Outlook and guidance

• The company expects continued pressure from high energy costs and increased network hashrate, impacting profitability.

• Additional capital will be required to fund operations over the next 12 months; financing options include equity or debt issuance.

• The merger with ABTC, if completed, will result in significant dilution for current shareholders but is expected to create a larger, more competitive entity.