Gryphon Digital Mining (GRYP) Q2 2024 earnings summary

Executive summary

• Achieved a 20% year-over-year increase in average hash rate to 899 PH/s in Q2 2024, with a peak energy efficiency of 28.5 J/TH in June.

• Self-mining hash rate reached 0.94 EH/s; included in the Russell Microcap Index, reflecting capital markets progress.

• Miner upgrade program completed ahead of schedule, enhancing operational efficiency and competitive position.

• Operations focus on bitcoin mining with 8,800 ASIC miners, aiming for net carbon neutrality and using renewable hydro energy at primary facilities in New York.

• Became a public company in February 2024 via reverse merger with Akerna, shifting from SaaS cannabis compliance to digital asset mining.

Financial highlights

• Mined 84 Bitcoin, generating $5.5M in revenue in Q2 2024, up from $4.9M year-over-year.

• Net loss of $4M in Q2 2024, including $2.5M in net non-cash expenses; net loss per share was -$0.10.

• Adjusted EBITDA was -$3M in Q2 2024, down from $4.2M in Q2 2023, mainly due to higher marketing expenses.

• Cash and cash equivalents stood at $1.2M as of June 30, 2024, with $1M in Bitcoin and $19.1M due for a Bitcoin-denominated note.

• Mining revenues rose to $13.0M for H1 2024, up 32.7% year-over-year, driven by higher bitcoin prices and increased miner count.

Outlook and guidance

• Expects Bitcoin price to trend higher in coming months, viewing current market as the bottom of the upcycle.

• Focused on growth through accretive hash rate expansion and acquisition of low-cost power.

• Management notes current cash is insufficient for the next 12 months; additional capital will be needed to fund operations and expansion.

• Plans to use proceeds from an at-the-market (ATM) equity program for general corporate purposes, including equipment purchases and working capital.

• General and administrative expenses expected to normalize after one-time marketing costs.