Gryphon Acquires $19M Site, Signs New Bitcoin Miner Hosting Deals

Gryphon Digital Mining, a small-cap Bitcoin mining firm listed on Nasdaq, saw its stock rally 20% on Friday after announcing an $18.7 million site acquisition from a Canadian oil and gas power company.

In a filing on Friday, Gryphon reported entering into a share purchase agreement with Alberta-based Captus Generation to acquire its team and an 850-acre industrial site powered by natural gas.

Under the agreement, Gryphon will pay Captus’ parent company, BTG Energy, CAD$24 million ($17 million) in cash and issue CAD$3 million in restricted shares to the incoming Captus management team.

Gryphon stated in a press release that the acquired asset has the potential to scale up to 4 gigawatts of capacity, enabling future expansion into AI and high-performance computing data center infrastructure. The transaction is expected to close by April.

This acquisition follows Gryphon’s recent winning bid of CAD$2 million for natural gas assets during the bankruptcy proceedings of Canadian power generator Erikson National Energy.

As part of the Erikson deal, Gryphon will acquire all natural gas and oil wells, facilities, and pipelines currently shut down in Northeast British Columbia. The project is expected to deliver an initial capacity of 100 MW, touting an energy cost of less than $0.03 per kWh.

However, it remains unclear how Gryphon plans to fund its two recent acquisitions. As of September 30, the company reported $368,000 in cash and $7.5 million in total assets. In October and November, it raised $575,000 by issuing new shares under an existing at-the-market program.

These infrastructure acquisitions come as Gryphon grapples with high Bitcoin mining costs associated with its asset-light hosting model. In Q3 2024, the company mined 61 BTC at a production cost of $59,213 per Bitcoin, excluding corporate overhead and financial expenses. That was on the higher end compared to its public mining peers.

Gryphon previously terminated its hosting agreement with Coinmint, which expired at the start of the year. On Friday, the company announced a new colocation agreement with Blockfusion to host 4,969 Bitcoin miners in Niagara Falls, New York. Under the Blockfusion contract, Gryphon will receive 12 MW of power load for a facility fee of $156,000 per month. The power cost will be a variable fee that is passed through to Gryphon by Blockfusion without markup.

On January 3, Gryphon also signed a colocation agreement with Mawson to host 635 Bitcoin miners at Mawson’s facility in Midland, Pennsylvania, with the option to host up to 5,880 miners. The Mawson agreement provides Gryphon with 20 MW of power load at a rate of $23.50/mWh, with a minimum monthly fee of approximately $165,521. Last week, Mawson announced it had onboarded an unnamed publicly traded customer for 5,880 miners using 20 MW of power.