Gryphon Digital Mining, Inc

Gryphon Digital Mining, Inc (NASDAQ: GRYP) is a company focused on bitcoin mining. It is also involved in the acquisition and development of energy assets to support infrastructure for artificial intelligence (AI) and high-performance computing (HPC) data centers.

Financial Updates:

• Gryphon Digital Mining to Merge with American Bitcoin Corp. in Strategic Stock-for-Stock Deal: GRYP announced that it has signed a definitive merger agreement with American Bitcoin Corp., a Bitcoin accumulation platform dedicated to developing the nation’s Bitcoin infrastructure. Under the terms of the stock-for-stock transaction, Gryphon will acquire American Bitcoin. Following the merger, the combined entity will operate under the American Bitcoin brand, with American Bitcoin’s management team and board of directors at the helm. The new company will trade on Nasdaq under the ticker symbol ‘ABTC’.
• Public Listing and Executive Team Strengthening: Gryphon Digital Mining (NASDAQ: GRYP), a company innovating in bitcoin mining, high-performance computing (HPC), and AI, announced today its financial results for the fourth quarter and full year ended December 31, 2024. The year marked a period of significant transformation for the Company, highlighted by its public listing on NASDAQ in February 2024. This milestone was followed by a strategic reshaping of the leadership team in the third quarter, including the appointment of a new CEO, retention of the CFO, and the addition of a Senior Vice President of Energy Strategy and new board members, all contributing to strengthened executive capabilities.
• Operational and Strategic Initiatives: The latter part of 2024 saw Gryphon initiate and execute a series of key operational and strategic actions designed to improve the Company’s financial structure and market position. These included a successful refinancing of debt, an equity raise with participation from both management and the board, and the signing of a definitive agreement to acquire Captus Energy, a scalable 4GW HPC/AI asset based in Alberta. Gryphon views the Captus Energy Acquisition as a pivotal step, offering substantial long-term growth potential and aligning with the Company’s strategy to diversify and scale its operations.
• Fourth Quarter Financial Performance and Improvements: The fourth quarter of 2024 marked a period of substantial financial improvement. Gryphon more than doubled its cash and cash equivalents from USD 368,000 to USD 735,000, converted USD 13 million of debt to equity, and improved its shareholder equity deficit from (USD 18.9 million) to (USD 7.0 million). The average daily trading volume of its stock also increased significantly, rising from approximately 249,000 shares in Q3 to 874,000 shares in Q4. These results reflect enhanced investor confidence and a stronger financial foundation heading into 2025.
• Debt Reduction and Strategic Financing: In a major financial restructuring, Gryphon reduced its total debt by over 70% through a combination of debt-to-equity conversion and favorable refinancing terms. Notably, USD 13 million of debt held by Anchorage Digital was converted into equity and pre-funded warrants. An additional USD 5 million in debt was restructured, and Anchorage was issued warrants for 2 million shares at USD 1.50 per share, becoming Gryphon’s largest shareholder and gaining a board seat. The Company also closed a non-brokered USD 2.85 million financing round, with full participation from management and a majority of the board.
• Mining Operations and Cost Management: Gryphon reported mining revenues of USD 3.845 million for Q4 2024, a modest increase from USD 3.689 million in the previous quarter. The Company mined approximately 61 Bitcoin in the quarter, down from 176 in Q4 2023, with a breakeven cost per Bitcoin of USD 75,872 compared to USD 23,902 in the same quarter the previous year. Gryphon emphasized its focus on operational cost discipline, noting that cash payroll expenses represented just 6.5% of total revenue, well below its target of 10%.
• Balance Sheet Overview and Forward Outlook: As of December 31, 2024, Gryphon reported total assets of USD 7.6 million, including USD 0.7 million in cash, USD 1.0 million in Bitcoin, and USD 3.6 million in mining-related assets. Total liabilities stood at USD 14.6 million, with current liabilities at USD 9.3 million. Looking ahead, the Company is focused on closing the Captus Energy Acquisition and advancing the development of that asset. Gryphon anticipates that this acquisition will serve as a launchpad for future growth and value creation, reinforcing its commitment to delivering long-term returns to shareholders.

Technical Observation (on the daily chart):

The chart for Gryphon Digital Mining (GRYP) shows a strong bullish breakout in May 2025, following a prolonged downtrend and consolidation phase. The stock is trading above both its 21-day and 50-day moving averages. RSI is neutral at ~58, suggesting room for further upside. The overall outlook remains positive with steady volume. 

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Speculative Buy’ rating has been given to Gryphon Digital Mining, Inc (NASDAQ: GRYP) at the closing market price of USD 1.17 as of June 09,2025.

Hut 8 Corp

Hut 8 Corp (NASDAQ: HUT) operates as an energy infrastructure platform that combines power, digital infrastructure, and large-scale computing to support emerging, energy-intensive applications like Bitcoin mining and advanced computing technologies.

Financial Updates:

• Financial Performance Overview: Hut 8 Corp. reported revenue of USD 21.8 million for the first quarter of 2025, significantly lower than the USD 51.7 million posted during the same period in 2024. The decline reflects ongoing strategic restructuring and reinvestment activities. The company recorded a net loss of USD 134.3 million in Q1 2025, a sharp contrast to net income of USD 250.7 million in Q1 2024, primarily due to a USD 112.4 million loss on digital assets, compared to a USD 274.6 million gain in the prior-year period. Adjusted EBITDA came in at negative USD 117.7 million, down from positive USD 297.0 million last year.
• Power and Infrastructure Development: Hut 8 continues to make progress in building out its power generation and infrastructure capabilities. During the quarter, it generated USD 4.4 million in revenue from its Power and Managed Services segment. The company commenced initial sitework on 592 acres at the River Bend campus in Louisiana and expanded its development pipeline to approximately 10,800 MW, with 2,600 MW under exclusivity agreements as of March 31, 2025. These initiatives underscore the firm’s commitment to securing a scalable energy footprint to support its long-term operational goals.
• Digital Infrastructure Expansion: The company’s Digital Infrastructure segment contributed USD 1.3 million in revenue during the quarter. Hut 8 made substantial progress at its Vega site, a 205 MW direct-to-chip liquid-cooled data center, which remains on schedule for energization in Q2 2025. More than 70% of the site’s budgeted capital expenditure had been incurred by quarter-end. Operational processes and site management protocols were also established, and testing of new cooling infrastructure was initiated at the Salt Creek facility to support Vega’s upcoming activation.
• Compute Segment and Strategic Bitcoin Mining: The Compute segment was the primary revenue generator in Q1 2025, bringing in USD 16.1 million through Bitcoin mining, GPU-as-a-Service, and cloud data center operations. A major upgrade of Hut 8’s ASIC fleet was completed in April, boosting hashrate to 9.3 EH/s and improving average efficiency to 20 J/TH. The company launched a new majority-owned subsidiary, American Bitcoin, to consolidate and grow its mining operations. This entity was formed through a transaction with American Data Centers, Inc., a firm backed by Eric Trump and Donald Trump Jr., and is expected to enhance capital efficiency while retaining exposure to Bitcoin.
• Capital Strategy and Strategic Reserves: Hut 8 significantly bolstered its financial positioning through capital raises and strategic asset retention. As of March 31, 2025, the company held 10,264 Bitcoin in reserve, valued at approximately USD 847.2 million. It also raised USD 275.5 million in net proceeds via its ATM equity program, selling 9.8 million shares at an average price of USD 28.23. These steps provide liquidity and financial flexibility to support expansion while maintaining exposure to long-term value creation through Bitcoin.
• Key Operational Metrics and Cost Challenges: Despite the company’s aggressive expansion, operational costs surged. The cost to mine a Bitcoin nearly tripled year-over-year to USD 58,757 in Q1 2025 from USD 20,419 in Q1 2024. Energy costs rose to USD 51.71 per MWh, up from USD 40.06. The number of Bitcoins mined dropped significantly to 167 from 716 in the prior-year period, indicating operational inefficiencies and capacity adjustments. Nevertheless, revenue per Bitcoin increased to USD 92,224, up from USD 51,769, largely driven by market dynamics and improved capital allocation strategies.

Technical Observation (on the daily chart):

HUT's stock has recently rallied after establishing support at key price levels, indicating an increased likelihood of further gains. The Relative Strength Index (RSI) is now above its midpoint, signaling strong bullish momentum and an accelerating upward trend. Additionally, the stock price has regained both its 21-day and 50-day Simple Moving Averages, reinforcing the expectation of continued upward movement in the near term. 

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Speculative Buy’ rating has been given to Hut 8 Corp (NASDAQ: HUT) at the closing market price of USD 18.55 as of June 09,2025. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is June 09,2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.