Gryphon Digital Mining Reports 79.2% Revenue Decline in Q1 2025

Gryphon Digital Mining, Inc. reported a significant decline in financial performance for the first quarter of 2025, with revenues from mining activities dropping to $1.56 million, a decrease of 79.2% compared to $7.49 million in the same period last year. The company attributed this decline to a combination of factors, including a 50% reduction in Bitcoin block rewards due to a halving event and an increase in the global hashrate, which reached an average of 802.3 exahash during the quarter, up 42% from the previous year. Despite an increase in the average value of Bitcoin mined, which rose to approximately $93,000 from $53,000, the overall revenue was adversely affected.

In terms of expenses, Gryphon's total operating costs decreased to $7.02 million from $9.05 million year-over-year, primarily due to lower costs associated with mining operations. The cost of revenues fell to $2.05 million from $4.84 million, reflecting the reduced operational scale. However, general and administrative expenses increased by 21.9% to $3 million, driven by higher salaries and professional fees. The company reported a net loss of $6.28 million for the quarter, an improvement from a loss of $11.74 million in the prior year, indicating a 46.5% reduction in losses.

Operationally, Gryphon's mining fleet consisted of approximately 10,700 miners as of March 31, 2025, compared to 8,800 a year earlier. The company also engaged in strategic developments, including the cancellation of the Giga Purchase Agreement and the Erikson Purchase Agreement, which resulted in expensing approximately $350,000 and $447,000, respectively. Additionally, Gryphon is in the process of acquiring Captus Energy, with a cash consideration of CAD $24 million, although the transaction has not yet closed.

Looking ahead, Gryphon's management expressed concerns regarding liquidity, noting that the current cash levels of $318,000 would not be sufficient to meet operational needs for the next 12 months. The company plans to seek additional capital through equity or debt financing to support its operations and potential acquisitions. Furthermore, Gryphon is actively working to address compliance issues with Nasdaq, having received an extension until September 2, 2025, to regain compliance with listing requirements. The company is also in discussions to restructure its agreement with Blockfusion to enhance profitability in light of high energy costs and industry hash rates.