Gryphon Digital Mining has acquired Bitcoin mining operations in Louisiana with ultra low-cost electricity at $0.01/kWh.
Gryphon Digital Mining has made a significant move in the Bitcoin mining industry by acquiring operations in Louisiana that utilize ultra low-cost electricity, priced at approximately $0.01 per kilowatt hour (kWh). The acquisition, valued at $1.5 million, includes 2.9 megawatts (MW) of operational capacity and 59 PH/s of Bitcoin mining equipment. This deal is expected to generate around $1 million in annual revenue for the company, as announced by Gryphon.
Gryphon Acquires Ultra Low-Cost Power Mining Operations at ~$0.01/kWh.
— Gryphon Digital Mining (@GryphonMining) August 20, 2024
Key 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 flow
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This acquisition is part of Gryphon's broader strategy to lower operational costs in the increasingly competitive Bitcoin mining sector. CEO Rob Chang emphasized the importance of securing low-cost power to thrive in a market where global hashrates are on the rise. "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," Chang stated.
Chang highlighted the potential benefits of low-cost power, including the possibility of greater margins using state-of-the-art mining equipment or making older, less efficient machines viable again. The flexibility provided by low-cost power also opens up opportunities for hosting services and high-performance computing operations.
The acquisition is expected to be immediately accretive, generating free cash flow from day one. Gryphon's strategy positions it as a leading low-cost operator in the Bitcoin mining industry, with plans to expand its power generation capabilities further.
