Gryphon Digital Mining, Inc., NASDAQ: GRYP, has taken an important step towards lowering their power costs. They have acquired Bitcoin-mining operations in Louisiana, where electricity is available at a very low cost of $0.01 per kilowatt (kWh).
Gryphon purchases ultra low-cost power mining operations for $0.01/kWh.
Highlights include:
• Ultra-low cost of ~ 1 cent per kWh
• Identified a pipeline of 500 MW of similar opportunities
• Immediately accretive operating asset that is already generating cash flowRead… pic.twitter.com/DKNQnjzZJl
— Gryphon Digital Mining (@GryphonMining) August 20, 2024
This $1.5 million acquisition, which includes up to 2.9 megawatts (MW) of operational capacity and 59 PH/s of Bitcoin mining equipment, comes fully equipped with assets, including gas power generators and containers, and is expected to generate about $1 million in annual revenue, according to the announcement.
“We believe that this acquisition of ultra low-cost power is our first step along an identified path of over 500 MW of similar low-cost power generation opportunities,” said Gryphon CEO Rob Chang. “The current post halving world is requiring bitcoin miners to secure low-cost power in order to thrive in an increasing global hashrate 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 reinforced that it is committed to reducing carbon emissions by utilizing flare gas in its operations. Gryphon uses the flare gas that’s a common by-product of oil production, but is typically burned in order to release it into the air. It is then repurposed as energy for Bitcoin mining. Gryphon’s mining operations are powered by this previously wasted gas, which is converted into energy. This reduces carbon emissions and helps the environment.
“We are particularly excited about the opportunities ultra low-cost power can afford us,” Chang continued. “We expect that low-cost power will allow for the possibility of greater margins using state of the art mining equipment or enabling return on investment on cheaper machines that are not economically viable at higher cost operations. Other possibilities include hosting services or providing high performance computing operations.”
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Source: bitcoinmagazine.com
