Griffin's Q4 2024 Earnings Call: Unpacking Contradictions on Captus Acquisition, Power Costs, and Renewable Energy Strategy

These are the key contradictions discussed in Griffin's latest 2024Q4 earnings call, specifically including: Captus asset acquisition and development, cost of power, and strategic focus on renewable energy:



Transition to Power Generation and AI Infrastructure:
- Gryphon Digital Mining announced a strategic shift to develop world-class power assets for HPC and AI data centers, with a focus on natural gas as the primary power source.
- This transition is driven by the increasing demand for high-performance computing infrastructure, with projections suggesting up to 70% of current U.S. household consumption in incremental power demand over the next five years.

Financial Performance and Debt Restructuring:
- The company mined approximately 334 Bitcoin in 2024, generating mining revenues of $20.5 million.
- A transformative debt restructuring with Anchorage Digital, converting $13 million of debt to equity, substantially improved cash flow and positioned Anchorage as the company's largest shareholder.

Captus Acquisition and Expansion Plans:
- Gryphon Digital Mining signed a definitive agreement to acquire Captus, which could position the company as one of the largest dedicated HPC and AI computing infrastructure providers with up to 4 gigawatts of potential power.
- The acquisition is part of a strategic plan to create a state-of-the-art HPC and AI data center campus in Alberta, with the first 130 megawatts expected to come online in 2026.

Adjusted EBITDA and Operational Effectiveness:
- Gryphon's adjusted EBITDA stood at approximately negative $5.5 million for the year ending December 31, 2024, while breakeven costs per Bitcoin were $47,359.
- The company has been focusing on improving operational effectiveness, which has resulted in a stronger financial position upon the exit of Q4 2024 compared to the beginning of the quarter.