Gryphon Digital Plunges 10.26% Amid Trigger GEARS Concerns

Gryphon Digital, a prominent player in the digital asset space, experienced a significant drop of 10.26% in pre-market trading on July 3, 2025. This decline comes amidst a backdrop of various market dynamics and strategic moves within the company.

One of the key factors influencing Gryphon Digital's stock price is the company's involvement in the issuance of Trigger GEARS linked to the S&P 500® Index. These securities, issued by Morgan Stanley Finance LLC and fully guaranteed by Morgan Stanley, offer investors the potential for enhanced growth through leveraged exposure to the positive performance of the S&P 500® Index. However, they also come with significant risks, including the possibility of losing the entire principal amount if the index performs poorly.

Additionally, Gryphon Digital's strategic decisions, such as the failure to deposit the required $50,000 to extend its business-combination deadline, have raised concerns among investors. This move, coupled with the complex nature of the Trigger GEARS, has contributed to the volatility in the company's stock price. Investors are closely monitoring these developments, as they could have a lasting impact on Gryphon Digital's financial health and market position.