Before the bitcoin halving, many experts were forecasting disaster for the cryptocurrency.
JPMorgan projected prices would drop to $42,000, saying the market was overbought.
Others said any potential gains post-halving were already priced in.
Regardless of where you stood before the halving took place in April, bitcoin is still here and it’s going strong.
However, one sector of the crypto markets has undergone a profound shift in the weeks since.
With bitcoin mining rewards getting cut in half, many who were previously profitable could now face bankruptcy or financial uncertainty.
That’s left the door open for smart mining companies to take advantage of the shakeout, and those on stable footing could come out even stronger than before.
That’s why the focus has now turned to efficient miners like Gryphon Digital Mining (NASDAQ: GRYP)
We’ve already started to see some consolidation in the market, with public companies leveraging their ability to raise capital to buy out smaller, struggling miners.
As a result, Gryphon stands to benefit as we approach a crossroads for the bitcoin mining industry.
The Winners and Losers of the Halving
Gryphon’s CEO Rob Chang said he’s seen even the biggest mining companies face challenges in recent years when crypto markets face pivotal moments.
For public companies whose costs average — $54,000 per bitcoin — that’s acceptable for business when bitcoin trades at $60,000.
You can quickly find yourself in hot water though when bitcoin drops below $50,000, as it did for much of the last few years.
Gryphon, on the other hand, has remained gross profit-positive every single month they’ve been in operation, and boasts an extrapolated all-in cost of only $44,989 per bitcoin post-halving.
That’s given the company much healthier profit margins, and it comes in large part because they’ve taken an asset-light approach.
Over the last year, Gryphon has managed to mine roughly $21 million worth of bitcoin with only three employees in the company.
Their decision to prioritize revenue-generating assets like mining machines rather than expensive facilities has dramatically lowered their fixed costs.
As a result, Gryphon has led the industry in efficiency, ranking consistently in the top 4 and placing first in efficiency throughout much of the last year.
All of this places Gryphon (NASDAQ: GRYP)on much more stable footing as the rewards for bitcoin miners have put the industry in flux in recent weeks.
From The C-Suite of Bitcoin Mining Giants
Much of their savvy decision-making comes as a result of the wealth of experience on Gryphon’s leadership team.
CEO Rob Chang previously served as CFO for Riot Blockchain, one of the largest publicly traded bitcoin mining companies, and managing director and Head of Metals and Mining at Cantor Fitzgerald.
Gryphon’s Chief Technical Advisor Chris Ensey shares Chang’s vision, having served at Riot as well, as its former CEO and COO.
CFO Sim Salzman came from another top mining company in Marathon Digital, as its market cap rose from $500 million to $8 billion in just 12 months.
With Gryphon’s leadership seeing the rise and fall of many competitors since 2018, their decision to remain asset-light and grow quickly in the bitcoin bull market is clearly paying off.
Unlocking A Potential $40 Trillion Industry
While Gryphon’s efficiency and world-class team provide a distinct advantage, its clearest advantage comes from an unexpected place for a cryptocurrency company.Despite cryptocurrencies being bashed for environmental concerns and being energy intensive, Gryphon stands apart from their competitors.
Gryphon (NASDAQ: GRYP) utilizes 100% renewable energy from a hydro-powered facility in upstate New York.
Chang noted that, for those investing in mining companies, some see the Company’s ESG focus as a bonus.
Others, however, view it as a requirement, noting the vast number of institutional investors that can only invest in companies that meet these ESG benchmarks.
With the global ESG market expected to reach $40 trillion by 2030, according to Bloomberg, that opens a lot of doors unavailable to other bitcoin miners.
If institutions want to add exposure to bitcoin mining to their ESG funds, for instance, Gryphon is one of only a few miners that are carbon-neutral.
(In fact, Chang adds that with carbon credits, Gryphon could be considered carbon negative.)
Through its partnership with one of the largest digital currency data centers in the world, Gryphon enjoys renewable energy at prices even lower than many competitors.
Plus, with it operating in an economic opportunity zone, Gryphon has been welcomed by the community while efficiently mining millions of dollars in bitcoin.
All that to say, Gryphon’s strategy of profit-sharing with renewable energy partners is actually a part of why it’s so efficient compared to its competitors.
Gryphon also recently became one of the first miners to be awarded the Green Proofs for Bitcoin certification, based on its clean energy use.
This certification offers clear proof of Gryphon’s dedication to renewable energy for those institutions looking to invest in green crypto companies.
Gryphon (NASDAQ: GRYP) clearly values transparency on this issue, and we believe it is the only bitcoin mining company to publicly share its full carbon emissions report over the last two years.
Now, as bitcoin remains close to all-time highs and investor interest is still red-hot, folks looking for a differentiator have trillions of dollars in available ESG money as an incentive to watch Gryphon.
Who Will Win Bitcoin’s Halving?
With Bitcoin prices already up over 40% for the year, investor interest is flooding back into the crypto markets, and many experts are calling the start of a new bull market.
Now, since the halving last month, the bitcoin mining sector has changed virtually overnight.
With the economics turning south for many companies, public companies like Gryphon hold a clear advantage in being able to raise capital.
Not only can public companies more easily upgrade machines to boost their efficiency, they can acquire smaller, struggling mining companies to acquire assets at a steep discount.
After joining the Nasdaq via merger in February, Gryphon is in position to put its history of only positive gross profits to good use, and its track record and ESG focus are helping the Company easily stand apart from the crowd.
By. Tom Kool
IMPORTANT NOTICE AND DISCLAIMER
PAID ADVERTISEMENT. This communication is a paid advertisement. Oilprice.com and its owners, managers, employees, and assigns (collectively “the Publisher”) is occasionally paid by one or more of the profiled companies or a third party to disseminate these types of communications. In this case, the Publisher has been compensated by Gryphon Digital Mining (NASDAQ: GRYP) to conduct investor awareness advertising and marketing. Gryphon paid the Publisher one hundred twenty thousand dollars and one hundred sixty thousand shares for each of five articles. This compensation should be viewed as a major conflict with our ability to be unbiased.
Readers should beware that third parties, profiled companies, and/or their affiliates may liquidate shares of the profiled companies at any time, including at or near the time you receive this communication, which has the potential to hurt share prices. Frequently companies profiled in such articles experience a large increase in volume and share price during the course of investor awareness marketing, which often ends as soon as the investor awareness marketing ceases. The investor awareness marketing may be as brief as one day, after which a large decrease in volume and share price may likely occur.
This communication is not, and should not be construed to be, an offer to sell or a solicitation of an offer to buy any security. Neither this communication nor the Publisher purport to provide a complete analysis of any company or its financial position. The Publisher is not, and does not purport to be, a broker-dealer or registered investment adviser. This communication is not, and should not be construed to be, personalized investment advice directed to or appropriate for any particular investor. Any investment should be made only after consulting a professional investment advisor and only after reviewing the financial statements and other pertinent corporate information about the company. Further, readers are advised to read and carefully consider the Risk Factors identified and discussed in the advertised company’s SEC, SEDAR and/or other government filings. Investing in securities, particularly microcap securities, is speculative and carries a high degree of risk. Past performance does not guarantee future results. This communication is based on information generally available to the public and on an interview conducted with the company’s CEO, and does not contain any material, non-public information. The information on which it is based is believed to be reliable. Nevertheless, the Publisher cannot guarantee the accuracy or completeness of the information.
SHARE OWNERSHIP. The owner of Oilprice.com owns shares and/or stock options of the featured company and therefore has an additional incentive to see the featured companies’ stock perform well. The owner of Oilprice.com will not notify the market when it decides to buy more or sell shares of the issuer in the market. The owner of Oilprice.com will be buying and selling shares of the featured company for its own profit and may take this opportunity to liquidate a portion of its position. This is why we stress that you conduct extensive due diligence as well as seek the advice of your financial advisor or a registered broker-dealer before investing in any securities.
FORWARD LOOKING STATEMENTS. This publication contains forward-looking statements, including statements regarding expected continual growth of the featured companies and/or industry. The Publisher notes that statements contained herein that look forward in time, which include everything other than historical information, involve risks and uncertainties that may affect the companies’ actual results of operations. Factors that could cause actual results to differ include, but are not limited to, changing governmental laws and policies impacting the company’s business, the size and growth of the market for the companies’ products and services, the companies’ ability to fund its capital requirements in the near term and long term, pricing pressures, etc.
INDEMNIFICATION/RELEASE OF LIABILITY. By reading this communication, you acknowledge that you have read and understand this disclaimer, and further that to the greatest extent permitted under law, you release the Publisher, its affiliates, assigns and successors from any and all liability, damages, and injury from this communication. You further warrant that you are solely responsible for any financial outcome that may come from your investment decisions.
TERMS OF USE. By reading this communication you agree that you have reviewed and fully agree to the Terms of Use found here http:// Oilprice.com/terms-and-conditions If you do not agree to the Terms of Use http:// Oilprice.com/terms-and-conditions, please contact Oilprice.com to discontinue receiving future communications.
INTELLECTUAL PROPERTY. Oilprice.com is the Publisher’s trademark. All other trademarks used in this communication are the property of their respective trademark holders. The Publisher is not affiliated, connected, or associated with, and is not sponsored, approved, or originated by, the trademark holders unless otherwise stated. No claim is made by the Publisher to any rights in any third-party trademarks.
