Gryphon Digital Mining, Inc. (NASDAQ: GRYP) has taken a major step toward reducing its energy costs by acquiring bitcoin mining operations in Louisiana that leverage ultra-low-cost electricity at approximately $0.01 per kilowatt hour (kWh).
<blockquote class="twitter-tweet”>
Gryphon acquires ultra-low-cost energy mining operations at ~$0.01/kWh.
Highlights include:
• Ultra-low cost of ~1 cent per kWh
• A pipeline of 500 MW of similar opportunities was identified
• Operating asset of immediate accumulation that is already generating cash flow
Read… image.twitter.com/DKNQnjzZJl
— Gryphon Digital Mining (@GryphonMining) twitter.com/GryphonMining/status/1825884390859112739?ref_src=twsrc%5Etfw”>August 20, 2024
This $1.5 million acquisition, which includes up to 2.9 megawatts (MW) of operating capacity and 59 PH/s of bitcoin mining equipment, comes fully equipped with assets including gas-fired power generators and containers, and is expected to generate around $1 million in annual revenue, according to the advertisement.
“We believe this acquisition of ultra-low-cost power is our first step on an identified path of over 500 MW of similar low-cost power generation opportunities,” said Gryphon CEO Rob Chang. “Today’s post-halving world requires bitcoin miners to source low-cost power to thrive in a rising global hash rate environment. With the acquisition of this ~1 cent power asset and future power generation assets with similar costs, we believe Gryphon will enhance its position as a leading low-cost operator with a competitive advantage in a key cost aspect of the bitcoin mining business.”
Gryphon has reaffirmed its commitment to reducing carbon emissions by using flare gas in its operations. Flare gas, a byproduct of oil extraction that is often burned and released into the atmosphere, is repurposed by Gryphon as an energy source for bitcoin mining. By converting this otherwise wasted gas into productive energy, Gryphon not only powers its mining operations but also mitigates environmental impact by reducing carbon emissions that would have been generated through flaring.
“We are particularly excited about the opportunities that ultra-low-cost power can bring to us,” Chang added. “We expect that low-cost power will enable us to achieve higher margins using state-of-the-art mining equipment or enable a return on investment in cheaper machines that are not economically viable in higher-cost operations. Other possibilities include hosting services or providing high-performance computing operations.”
<script async src="https://platform.twitter.com/widgets.js” charset=”utf-8″>
