Gryphon Digital Mining Reports Revenue Decline and Operational Losses for Fiscal Year 2024

Gryphon Digital Mining, Inc., formerly known as Akerna Corp., reported a decrease in total revenues for the fiscal year ending December 31, 2024, amounting to $20.54 million, down from $21.93 million in 2023. The decline was primarily attributed to a drop in management services revenue, which fell to zero following the termination of a contract with Sphere 3D. Mining revenues also decreased slightly to $20.54 million from $21.05 million, despite an increase in the average value of bitcoin mined, which rose to $66,000 from $29,000. The company mined 334 bitcoins in 2024, a significant decrease from 739 bitcoins in 2023, largely due to a 50% reduction in block rewards following a halving event in April 2024 and an increase in the global hashrate.

In terms of operational costs, Gryphon experienced a 17.5% increase in the cost of revenues, totaling $15.82 million, driven by higher energy costs and an increase in the deployment of miners. General and administrative expenses surged by 136.7% to $11.27 million, influenced by increased professional fees and costs associated with the company's transition to a public entity. The company reported a loss from operations of $17.75 million, a slight improvement from the previous year's loss of $19.18 million.

Strategically, Gryphon has undergone significant changes, including a name change and a merger with Ivy Crypto, Inc., which was finalized on February 9, 2024. Following the merger, Gryphon sold its legacy business to MJ Acquisition Corp. and has shifted its focus towards acquiring and developing energy assets for artificial intelligence and high-performance computing data center infrastructure. The company has also entered into new hosting agreements with Blockfusion and Mawson, allowing it to expand its mining operations.

As of December 31, 2024, Gryphon operated approximately 9,660 bitcoin mining computers and reported an increase in its employee headcount. The company is actively pursuing additional acquisitions, including the Captus Acquisition, which aims to develop a site in Alberta, Canada, for AI and HPC infrastructure. However, Gryphon's financial health remains a concern, with an accumulated deficit of approximately $67.74 million and a warning from its independent auditors regarding its ability to continue as a going concern.

Looking ahead, Gryphon anticipates needing additional capital to fund its operations and growth initiatives. The company has initiated an at-the-market offering to raise up to $70 million, which it plans to use for general corporate purposes, including potential acquisitions and capital expenditures. However, the company faces challenges related to market conditions, regulatory scrutiny, and the volatile nature of bitcoin prices, which could impact its future performance and operational strategy.