Gryphon Digital Mining, Inc.
For the period ended Jun 30, 2025. Filed Aug 14, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 14, 2025
ABTC$5.35+0.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-15.
0001213900-25-044194
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-14.
0001213900-25-076632
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 93 previous paragraphs and 131 current paragraphs.
58 unchanged; 28 reworded; 36 added; 7 removed; 0 previous and 9 current paragraphs rearranged.
Tables are not compared: 11 previous and 14 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (36)
Current report
ABTC Merger Agreement
Current report
Captus Energy
Current report
On January 8, 2025, the Company and Alberta Ltd., entered into a Share and Unit Purchase Agreement (the “Captus Agreement”) with BTG Energy Corp., a Canadian corporation (“BTG Energy”), BTG Power Corp., a Canadian corporation (“BTG Power”) and West Lake Energy Corp., a Canadian corporation (“West Lake,” and together with BTG Energy and BTG Power, the “Vendors”). Pursuant to the Captus Agreement, the Company was to acquire from the Vendors all of the issued and outstanding shares or units, as applicable, of (i) Captus Generation Ltd. (“Captus GP”) and BowArk Energy Ltd., each a Canadian corporation, and (ii) Captus General Limited Partnership, a Canadian limited partnership (collectively “Captus Energy,” and the transaction contemplated by the Captus Agreement, the “Captus Acquisition”).
Current report
In connection with the Captus Agreement, on January 8, 2025, as a material inducement to their agreeing to become employees of the Company, the Company granted a restricted stock award to each of Harry Andersen, Paul Connolly, Mark Taylor and Steve Giacomin (collectively, the “Restricted Stock Awards”). The Restricted Stock Awards were intended to constitute “employment inducement awards” under the Nasdaq Stock Market Rules. The aggregate restricted stock shares issued was 4,083,003.
Current report
On May 29, 2025, the Company entered into an Assignment and Amending Agreement (“Assignment Agreement”) with Captus Energy and 2703444 Alberta LTD (“Assignee”). Captus Energy consented to the Company’s assignment of its rights and interests in the Captus agreement to the Assignee, which agreed to the assumption of the rights and interest in the Captus agreement for $1.00. As of the Assignment date, the Company wrote off the Captus Acquisition cost of approximately $1,292,000 classified as the merger and acquisition expenses in accompanying unaudited condensed consolidated statement of operations. In addition, the Restricted Stock Awards were cancelled and returned to the Company.
Current report
Six months ended June 30, 2025 compared to the six months ended June 30, 2024
Current report
Cost of revenues decreased to $3,662,000 for the six months ended June 30 2025, from $8,640,000 for the six months ended June 30, 2024. The decrease of $4,978,000 was primarily due to the decrease in the number of Bitcoin mined offset by (i) an increase in Bitcoin network hashrate and (ii) higher energy costs.
Current report
Professional fees decreased to $1,562,000 for the six months ended June 30, 2025, from $1,939,000 for the six months ended June 30, 2024. The decrease of $377,000 relates to (i) a $205,000 decrease in legal related fees, (ii) a $98,000 decrease in accounting related fees, and (iii) a $74,000 decrease in other professional fees.
Current report
Investor and public relations expenses decreased to $1,046,000 for the six months ended June 30, 2025, from $3,354,000 for the six months ended June 30, 2024. Given the pending merger with ABTC, management has suspended the use of third-party consultants for investor and public relations services.
Current report
Salaries and wages increased to $1,264,000 for the six months ended June 30, 2025, from $454,000 for the six months ended June 30, 2024. The increase of $810,000 is due (i) $419,000 for 2025 bonus accruals for our executive officers, (ii) $216,000 increase in compensation related to our CEO and VP of Energy, both hired during Q4 of 2024, (iii) $70,000 increase in employee benefits, and (iv) $105,000 increase in compensation for our directors.
Current report
Unrealized gain on digital assets
Current report
For the six months ended June 30, 2025, the Company incurred an unrealized gain on digital assets of $74,000 as compared to an unrealized gain of $1,385,000 for the six months ended June 30, 2024. The fair market value of a Bitcoin as of December 31, 2024 was approximately $93,000 as compared to approximately $107,000 as of June 30, 2025. The increase of approximately $14,000 and the number of Bitcoin held by us (approximately 9 as of June 30, 2025) resulted in the unrealized gain for the six months ended June 30, 2025. The fair market value of a Bitcoin as of December 31, 2023 was approximately $43,000 as compared to approximately $62,000 as of June 30, 2024. The increase of approximately $19,000 and the number of Bitcoin held by us (approximately 16 as of June 30, 2024) resulted in an unrealized gain for the six months ended June 30, 2024.
Current report
As of the Captus Assignment Agreement, the Company had approximately $1,953,000 of cash deposits and related professional fees, which were expensed as of the assignment date.
Current report
Also, the Company had approximately $223,000 of fees related to three other potential acquisitions. The $253,000 was expensed upon the termination dates of the contracts.
Current report
Loss on disposal of asset
Current report
Loss on disposal of asset was $83,000 for the six months ended June 30, 2025, as compared to $146,000 for the six months ended June 30, 2024. The loss related to the April 2025 disposal of 66 miners with a cost basis of approximately $132,000 and accumulated depreciation of approximately $49,000.
Current report
ABTC merger costs
Current report
On May 9, 2025, the Company entered into an Agreement and Plan of Merger with ABTC. For the six months ended June 30, 2025, the Company incurred approximately $989,000 of costs related to the ABTC merger, consisting of $543,000 for legal fees, $103,000 for accounting services, $200,000 for fairness opinion, $128,000 for the modification of the Anchorage warrant, and $15,000 of other miscellaneous expenses.
Current report
Mining revenues
Current report
Cost of revenues
Current report
General and administrative expenses
Current report
Professional fees decreased to $419,000 for the three months ended June 30 2025, from $891,000 for the three months ended June 30, 2024. The decrease of $472,000 relates to (i) a $552,000 decrease in legal fees, (ii) a $34,000 decrease in accounting fees, and (iii) a $114,000 increase in other fees.
Current report
Investor and public relations expenses decreased to $313,000 for the three months ended June 30, 2025, from $2,467,000 for the three months ended June 30, 2024. Given the pending merger with ABTC, management has suspended the use of third-party consultants for investor and public relations services.
Current report
Salaries and wages increased to $618,000 for the three months ended June 30, 2025, from $221,000 for the three months ended June 30, 2024. The increase of $397,000 was due (i) $209,000 for bonus accruals for our executive officers, (ii) a $108,000 increase in compensation related to our CEO and VP of Energy, both hired during Q4 of 2024, (iii) a $23,000 increase in employee benefits, and (iv) a $57,000 increase in compensation for our directors.
Current report
Stock-based compensation expense
Current report
Stock-based compensation expense decreased to $39,000 for the three months ended June 30, 2025, from $140,000 for the three months ended June 30, 2024. For the three months ended June 30, 2025 our stock based compensation expense was $287,000, which was offset by a $248,000 reversal for the 2025 first quarter expense for the Captus Energy restricted stock awards, which were canceled during the second quarter of 2025, due to the Captus Energy Assignment Agreement.
Current report
Depreciation expense
Current report
Merger and acquisition costs
Current report
As of the date of the Captus Assignment Agreement, the Company had approximately $1,953,000 of cash deposits and related professional fees, which were expensed as of the assignment date.
Current report
Loss on disposal of asset
Current report
Loss on disposal of assets was $83,000 for the three months ended June 30, 2025, as compared to $146,000 for the three months ended June 30, 2024. The loss related to the April 2025 disposal of 66 miners with a cost basis of approximately $132,000 and accumulated depreciation of approximately $49,000.
Current report
ABTC Merger costs
Current report
On May 9, 2025, the Company entered into an Agreement and Plan of Merger with ABTC. For the six months ended June 30, 2025, the Company incurred approximately $989,000 of costs related to the ABTC merger, consisting of $543,000 for legal fees, $103,000 for accounting services, $200,000 for fairness opinion, $128,000 for the modification of the Anchorage warrant, and $15,000 of other miscellaneous expenses.
Current report
Interest expense
Current report
Net cash used in investing activities was approximately $954,000 for the six months ended June 30, 2024, and consisted of (i) the purchase of mining equipment for approximately $1,075,000, (ii) a cash disbursement of $50,000 for a refundable deposit, and (iii) proceeds of $171,000 from the sale of miners.
Current report
All of the Anchorage Warrants have been exercised and none remain outstanding.
Removed paragraphs (7)
Previous report
Merger Agreement
Previous report
On January 3, 2025, Gryphon entered into a Master Co-Location Agreement (the “Mawson Agreement”) with Mawson Hosting LLC (“Mawson”) with a right to host up to 5,880 miners in Mawson’s facility in Midland, Pennsylvania. Pursuant to the Mawson Agreement, the Company is entitled to 20 MW of power at a cost of approximately $23.50 per MW/hour paid monthly with a minimum fee of approximately $165,521 per month, as well as certain other fees set forth in the agreement. The Mawson Agreement has an initial term of one year and may be terminated on sixty days’ notice. The Company has delivered 6,719 bitcoin miners to Mawson.
Previous report
Professional fees increased to $1,143,000 for the three months ended March 31, 2025, from $1,048,000 for the three months ended March 31, 2024. The increase of $95,000 relates to an increase in (i) accounting fees of approximately $12,000 and (ii) legal fees of approximately $83,000.
Previous report
Investor and public relations expenses decreased to $733,000 for the three months ended March 31, 2025, from $887,000 for the three months ended March 31, 2024. The decrease is due to a decline in the use of consultants by the Company’s for its public exposure. Included in the $733,000 investor and public relations expenses for the three months ended March 31, 2025 and 2024 was approximately $109,000 and $0, respectively, of non-cash expense related to the fair value of common stock issued to consultants.
Previous report
Salaries and wages increased to $646,000 for the three months ended March 31, 2025, from $233,000 for the three months ended March 31, 2024. The increase of $413,000 is due (i) a first quarter 2025 bonus accrual of approximately $209,0000 for our executive officers and (ii) $204,000 of compensation for the three new directors, one additional executive employee hired during the fourth quarter of 2024.
Previous report
Corporate stock expense increased to $49,000 for the three months ended March 31, 2025, from $0 for the three months ended March 31, 2024. The increase of $49,000 is attributable to expenses incurred due to the completion of the Merger.
Previous report
Mawson Agreement
Reworded paragraphs (28)
Previous wording
For the three months ended March 31, 2025 and 2024, Gryphon mined approximately 17 and 142 bitcoins, respectively. While Gryphon does not have any plans to acquire digital assets other than bitcoin, it may do so in the future.
Current wording
For the six months ended June 30, 2025 and 2024, Gryphon mined approximately 31 and 226 bitcoins, respectively. While Gryphon does not have any plans to acquire digital assets other than bitcoin, it may do so in the future.
Previous wording
Below is a breakeven analysis of Gryphon’s mining operations for three months ended March 31, 2025 and 2024:
Current wording
Below is a breakeven analysis of Gryphon’s mining operations for six months ended June 30,
Previous wording
The breakeven analysis is computed by taking the cost of revenues for the given period and dividing that sum by the number of Bitcoin mined during the same period. For instance, in Q1 2024 the $4,837,000 cost of revenues is divided by the 142 Bitcoin mined, resulting in an average of $34,070 per coin. The breakeven analysis is an operational metric that does not take capital expenditures or financing mechanics into consideration. The calculation only considers direct operational costs, such as electricity and hosting. The mining equipment was originally financed primarily through equity capital raises and cash flows resulting from the sale of bitcoin generating by mining operations. As of March 31, 2025, there were no financing agreements outstanding related to financing of mining equipment.
Current wording
The breakeven analysis is computed by taking the cost of revenues for the given period and dividing that sum by the number of Bitcoin mined during the same period. For instance, for the six months ended June 30, 2025 the $3,662,000 cost of revenues is divided by the 31 Bitcoin mined, resulting in an average of $117,636 per coin. The breakeven analysis is an operational metric that does not take capital expenditures or financing mechanics into consideration. The calculation only considers direct operational costs, such as electricity and hosting. The mining equipment was originally financed primarily through equity capital raises and cash flows resulting from the sale of bitcoin generating by mining operations. As of June 30, 2025, there were no financing agreements outstanding related to financing of mining equipment.
Previous wording
The breakeven cost of mining bitcoin is influenced primarily by two factors. First, the cost of electricity sourced from Gryphon’s hosting providers, which encompasses a combination of pass-through market electricity prices and profit-sharing arrangements. Second, it is affected by the global hashrate of the Bitcoin network. During the first quarter of 2025, the cost of electricity plus the profit-sharing arrangement in place with the hosting provider has fluctuated due to increased demand year over year from $0.0817 per kilowatt hour in the first quarter of 2024 to $0.108 per kilowatt hour in the first quarter of 2025, reaching a high of $0.156 per kilowatt hour during January 2025. In addition, the global hashrate of the Bitcoin network has shown a consistent upward trend, with sequential increases of 6.6%, 4.4%, 16.9% and 9.2% over the last four quarters ending March 31, 2025. This increase in the global hashrate has led to fewer bitcoins being mined for the same amount of energy consumption. The combined effect of these changes in the two key cost drivers has resulted in an increase in the overall breakeven level as of March 31, 2025 compared to March 31, 2024.
Current wording
The breakeven cost of mining bitcoin is influenced primarily by two factors. First, the cost of electricity sourced from Gryphon’s hosting providers, which encompasses a combination of pass-through market electricity prices and profit-sharing arrangements. Second, it is affected by the global hashrate of the Bitcoin network. During the six months ended June 30, 2025, the cost of electricity has fluctuated due to increased demand year over year from $0.0736 per kilowatt hour during the six months ended June 30, 2024 to $0.0926 per kilowatt hour during the six months ended June 30, 2025, reaching a high of $0.1223 per kilowatt hour during January 2025. In addition, the global hashrate of the Bitcoin network has shown a consistent upward trend, with sequential increases of 4.4%, 16.9%, 9.2% and 9.1% over the last four quarters ending June 30, 2025. This increase in the global hashrate has led to fewer bitcoins being mined for the same amount of energy consumption. The combined effect of these changes in the two key cost drivers has resulted in an increase in the overall breakeven level as of June 30, 2025 compared to June 30, 2024.
Previous wording
See “Explanatory Note” and “Note 11 – Subsequent Events” to the unaudited condensed consolidated financial statements for the three months ended March 31, 2025 included in this Report.
Current wording
See “Explanatory Note” and “Note 1 – Organization and Summary of Significant Accounting Policies “ABTC Merger” to the unaudited condensed consolidated financial statements for the six months ended June 30, 2025 included in this Report.
Previous wording
On December 1, 2024, the Company entered into an agreement with Blockfusion USA, Inc. (“Blockfusion”) to provide hosting services for 3,780 of the Company’s bitcoin miners not to exceed 12MW of allocated power (“Blockfusion MSA”) for a period of twelve months (November 30, 2025), automatically renewing for one month extensions until terminated by either party, (“Term”). The Company is required to pay to Blockfusion a monthly facility fee of $13,000 per MW, for an aggregate of $156,000 (“Facility Fee”) for standard levels of maintenance of the Company’s Mining Equipment, including fault diagnosis and software upgrades, and racking and unracking of faulty machines. The Company’s monthly power usage will charge to the Company without a Blockfusion markup charge. At the signing of the Blockfusion MSA, the Company was required to pay (i) an initial monthly Facility Fee of $156,000 to be applied to the December 2024 Facility fee, (ii) a deposit in the aggregate of $600,000, as follows $200,000 on December 6, 2024, $200,000 on January 1, 2025 and $200,000 on February 1, 2025 (“Cash Deposit”) and (iii) the Company is required, prior to January 27. 2025, and thereafter at all times during the Term, maintain an irrevocable letter of credit, or prior to January 31, 2025 maintain a cash deposit and thereafter at all times during the Term, in the amount of $1,200,000 (“LOC Deposit”). As of the release date of these consolidated Financial Statements, the Cash Deposit has been paid and is not outstanding while the LOC Deposit remains outstanding.
Current wording
On December 1, 2024, the Company entered into an agreement with Blockfusion USA, Inc. (“Blockfusion”) to provide hosting services for 3,780 of the Company’s bitcoin miners not to exceed 12MW of allocated power (“Blockfusion MSA”) for a period of twelve months (November 30, 2025), automatically renewing for one month extensions until terminated by either party, (“Term”). The Company was required to pay to Blockfusion a monthly facility fee of $13,000 per MW, for an aggregate of $156,000 (“Facility Fee”) for standard levels of maintenance of the Company’s Mining Equipment, including fault diagnosis and software upgrades, and racking and unracking of faulty machines. The Company’s monthly power usage would charge to the Company without a Blockfusion markup charge. At the signing of the Blockfusion MSA, the Company was required to pay (i) an initial monthly Facility Fee of $156,000 to be applied to the December 2024 Facility fee, (ii) a deposit in the aggregate of $600,000, as follows: $200,000 on December 6, 2024, $200,000 on January 1, 2025 and $200,000 on February 1, 2025 (“Cash Deposit”) and (iii) the Company was required, prior to January 27. 2025, and thereafter at all times during the Term, maintain an irrevocable letter of credit, or prior to January 31, 2025 maintain a cash deposit and thereafter at all times during the Term, in the amount of $1,200,000 (“LOC Deposit”). As of the release date of these consolidated Financial Statements, the Cash Deposit has been paid and is not outstanding while the LOC Deposit remains outstanding.
Previous wording
Subsequent to March 31, 2025, on April 15, 2025, due to high industry hash rates and high energy costs, Gryphon Digital Mining, Inc. (the “Company”) and Blockfusion USA, Inc. (“Blockfusion”) agreed to suspend mining operations and curtail service, respectively. The Company and Blockfusion are actively collaborating to rework their Co-Location Mining Services Agreement, dated as of December 1, 2024, to enable the Company to mine profitably moving forward. The Company expects to issue additional updates as appropriate.
Current wording
On April 15, 2025, due to high industry hash rates and high energy costs, Gryphon Digital Mining, Inc. (the “Company”) and Blockfusion USA, Inc. (“Blockfusion”) agreed to suspend mining operations and curtail service, respectively.
Previous wording
Other expenses increased to $279,000 for the three months ended March 31, 2025, from $152,000 for the three months ended March 31, 2024. The increase of $127,000 is attributable to (i) an increase of $131,000 for repair work on our miner fleet, and (ii) offset by a general decrease of approximately $4,000.
Current wording
Other expenses increased to $364,000 for the six months ended June 30, 2025, from $105,000 for the six months ended June 30, 2024. The increase of $259,000 was due to an increase of $290,000 for repair work on our miner fleet, offset by a general decrease in other expenses of approximately $30,000.
Previous wording
Stock-based compensation expense increased to $772,000 for the three months ended March 31, 2025, from $208,000 for the three months ended March 31, 2024. The increase is due to the issuance of restricted stock units to the members of Gryphon’s Board of Directors (the “Gryphon Board”) members during the fourth quarter of 2024 and the issuance of restricted stock awards, in January 2025, as an incentive for the employment of the Captus management team.
Current wording
Stock-based compensation expense increased to $811,000 for the six months ended June 30, 2025, from $348,000 for the six months ended June 30, 2024. The increase is due to the issuance of restricted stock units to our CEO, VP of Energy and members of the Board of Directors during the fourth quarter of 2024.
Previous wording
Depreciation decreased to $1,071,000 for the three months ended March 31, 2025, from $3,247,000 for the three months ended March 31, 2024. The average remaining useful life of the mining fleet as of March 31, 2025 and March 31, 2024 were 26 months and 55 months, respectively. Therefore, the depreciation expense for the three months ended March 31, 2025 was reduced in comparison to the depreciation expense for the three months ended March 31, 2024.
Current wording
Depreciation decreased to $1,586,000 for the six months ended June 30, 2025, from $6,539,000 for the six months ended June 30, 2024. The decrease is due to the average remaining useful life of the mining fleet as of June 30, 2025 was 23 months, while the average remaining useful life of the mining fleet as of June 30, 2024 was 52 months.
Previous wording
On March 7, 2025, The Company and Sphere 3D entered into a settlement and release agreement on mutually acceptable terms. The Settlement Agreement fully resolved all pending litigation between the Company and Sphere, and each party fully released the other party from any known or unknown and unsuspected claims. As such the Company was relieved of its $449,000 liability.
Current wording
On March 7, 2025, the Company and Sphere 3D entered into a settlement and release agreement on mutually acceptable terms. The Settlement Agreement fully resolved all pending litigation between the Company and Sphere 3D, and each party fully released the other party from any known or unknown and unsuspected claims. As such the Company was relieved of a $449,000 payable to Sphere 3D, which was expensed as of the settlement date.
Previous wording
The Company was in the process of evaluating several strategic business acquisitions. During the three months ended March 31, 2025, the Company cancelled the Giga Purchase Agreement and the Erikson Purchase Agreement. For the Giga Purchase Agreement, the Company had approximately $350,000 of cash deposits. For the Erikson Purchase Agreement, the Company had $447,000 of cash deposits and approximately $161,000 of professional fees. Also, the Company had approximately $236,000 of legal fees related to three other potential acquisitions that it has expensed.
Current wording
For the six months ended June 30, 2025 merger and acquisition cost increased to $3,164,000 compared to $394,000 for June 30, 2024. During the six months ended June 30, 2025, the Company terminated the Giga Purchase Agreement and the Erikson Purchase Agreement. For the Giga Purchase Agreement, the Company had approximately $350,000 of cash deposits. For the Erikson Purchase Agreement, the Company had $447,000 of cash deposits and $161,000 of professional fees. The cash deposits and related professional fees were expensed as of each of the acquisition termination dates.
Previous wording
Mining revenues decreased to $1,558,000 for the three months ended March 31, 2025 from $7,490,000 for the three months ended March 31, 2024. The decrease in mining revenues of $5,932,000 is due to a combination of factors. The average value of bitcoin mined for the three Months ended March 31, 2025 was $93,000 compared to $53,000 for the three months ended March 31, 2024, an increase of $40,000, or 76%. As of March 31, 2025, the Company had approximately 10,700 miners compared to approximately 8,800 as of March 31, 2024. However, these increases in operational miners and revenue recognized per bitcoin earned were offset by the increase in global hashrate as well as the 50% reduction in block rewards due to the halving event in April 2024.
Current wording
Mining revenues decreased to $1,377,000 for the three months ended June 30, 2025 from $5,515,000 for the three months ended June 30, 2024. The decrease in mining revenues of $4,138,000 was due to a combination of factors. The average value of bitcoin mined for the three months ended June 30, 2025 was $98,000 compared to $66,000 for the three months ended June 30, 2024, an increase of $32,000, or 49.0%. For the three months ended June 30, 2025, the Company had approximately 10,600 miners in operation compared to approximately 8,800 as of June 30, 2024. However, these increases in revenue recognized per bitcoin earned and operational miners were offset by the increase in global hashrate as well as the 50% reduction in block rewards due to the halving event in April 2024.
Previous wording
During the three months ended March 31, 2025 and 2024, the average daily global hashrate was 802.3 exahash and 564.7 exahash, respectively, an increase of 42%.
Current wording
During the three months ended June 30, 2025 and 2024, the average daily global hashrate was 875.7 exahash and 602.1 exahash, respectively, an increase of 45%.
Previous wording
Cost of revenues decreased to $2,054,000 for the three months ended March 31, 2025, from $4,837,000 for the three months ended March 31, 2024. The decrease of $2,783,000 was primarily due to (i) an increase in Bitcoin network hashrate and (ii) higher energy costs.
Current wording
Cost of revenues decreased to $1,608,000 for the three months ended June 30, 2025, from $3,803,000 for the three months ended June 30, 2024. The decrease of $2,195,000 was primarily due to a decrease in the number of Bitcoin mined offset by (i) an increase in Bitcoin network hashrate and (ii) higher energy costs.
Previous wording
For the three months ended March 31, 2025 the Company incurred a unrealized loss on digital assets of $127,000 as compared to a unrealized gain of $1,703,000 for the three months ended March 31, 2024. The fair market value of Bitcoin as of December 31, 2023 was approximately $43,000 as compared to approximately $71,000 as of March 31, 2024. The increase of approximately $28,000 and our number of Bitcoin held, of approximately 59, as of March 31, 2024 resulted in an unrealized gain for the three months ended March 31, 2024. The fair market value of Bitcoin as of December 31, 2024 was approximately $93,000 as compared to approximately $83,000 as of March 31, 2025. The decrease of approximately $10,000 and our number of Bitcoin held, of approximately 10, as of March 31, 2025 resulted in the unrealized loss for the three months ended March 31, 2025.
Current wording
For the three months ended June 30, 2025 the Company incurred an unrealized gain on digital assets of $200,000 as compared to an unrealized loss of $318,000 for the three months ended June 30, 2024. The fair market value of Bitcoin as of March 31, 2025 was approximately $83,000 as compared to approximately $107,000 as of June 30, 2025. The increase of approximately $24,000 and the number of Bitcoin held (approximately 9 as of June 30, 2025) resulted in the unrealized gain for the three months ended June 30, 2025. The fair market value of a Bitcoin as of April 30, 2023 was approximately $71,000 as compared to approximately $62,000 as of June 30, 2024. The decrease of approximately $9,000 and the number of Bitcoin held by us (approximately 16 as of June 30, 2024) resulted in an unrealized loss for the three months ended June 30, 2024.
Previous wording
For the three months ended March 31, 2025 unrealized loss on marketable securities was $66,000, as compared to an unrealized loss of $216,000 for the three months ended March 31, 2024. The loss for the three months ended March 31, 2025 related to a decrease in the fair market value of the underlying securities held.
Current wording
For the three months ended June 30, 2025 unrealized gain on marketable securities was $23,000, as compared to an unrealized loss of $56,000 for the three months ended June 30, 2024. The gain for the three months ended June 30, 2025 related to an increase in the fair market value of the underlying securities held.
Previous wording
During the year ended December 31, 2024, the Company had a note payable denominated in Bitcoin, which was accounted for under the fair value method of accounting. For the three months year ended March 31, 2024, the Company recognized a $9,638,000 increase in the fair value of notes payable. The note payable was settled in October 2024; therefore, the Company did not incur a fair value change for the three months ended March 31, 2025.
Current wording
During the year ended December 31, 2024, the Company had a note payable denominated in Bitcoin, which was accounted for under the fair value method of accounting. For the three months ended June 30, 2024, the Company recognized a $2,743,000 increase in the fair value of notes payable. The note payable was settled in October 2024; therefore, the Company did not incur a fair value change for the three months ended June 30, 2025.
Previous wording
The interest expense of $330,000 for the three months ended March 31, 2024, was related to the note payable denominated in Bitcoin. As to the Bitcoin denominate note payable was settled in October 2024 and accounted for as a troubled debt restructuring, the new note payable principal balance was increased for aggregate future interest expense, as such the monthly interest payment reduces the note payable balance; therefore, the Company did not recognize interest expense for the three months ended March 31, 2025.
Current wording
Interest expense of $290,000 for the three months ended June 30, 2024, was related to the note payable denominated in Bitcoin. As to the Bitcoin denominated note payable was settled in October 2024 and accounted for as a troubled debt restructuring, the new note payable principal balance was increased for aggregate interest expense accrued under the prior note, and as such the monthly interest payment reduces the note payable balance; therefore, the Company did not recognize interest expense for the three months ended June 30, 2025.
Previous wording
As of March 31, 2025 and December 31, 2024, the Company had cash and cash equivalents (excluding restricted cash) of $318,000 and $735,000, respectively, and an accumulated deficit of approximately $73,652,000 and $67,735,000, respectively. The Company financed its operations primarily through proceeds from the sales of its equity securities through private placements, its at-the-market program as described below, borrowings pursuant to the Sphere 3D Note and the BTC Note and cash flow from its digital currency mining operations.
Current wording
As of June 30, 2025 and December 31, 2024, the Company had cash and cash equivalents of $678,000 and $735,000, respectively, and an accumulated deficit of approximately $79,272,000 and $67,735,000, respectively. The Company financed its operations primarily through proceeds from the sales of its equity securities through private placements, its at-the-market program as described below, borrowings pursuant to the Sphere 3D Note and the BTC Note and cash flow from its digital currency mining operations.
Previous wording
On June 10, 2024, the Company filed a prospectus supplement for the offering, issuance and sale of up to a maximum aggregate offering price of $70.0 million of common stock that may be issued and sold under an at-the-market issuance sales agreement with Ladenburg Thalmann & Co. Inc., Kingswood Investments, a division of Kingswood Capital Partners, LLC, PI Financial (US ) Corp. and ATB Capital Markets USA Inc., each respectively acting as sales agents, (the “ATM”). The Company has used and intend to continue to use the net proceeds from the ATM for general corporate purposes, including without limitation, capital expenditures, funding potential acquisitions of additional new mining equipment, other potential acquisitions, investments in existing and future Bitcoin mining projects and repurchases and redemptions of our common stock and general working capital. The ATM will terminate upon the earlier of (i) the issuance and sale of all of the shares of the common stock subject to the conditions set forth in the ATM or (ii) termination of the ATM as otherwise permitted thereunder. The ATM may be terminated at any time by either the Company or any sales agent with respect to itself upon five days’ prior notice, or by the sales agents at any time in certain circumstances, including the occurrence of a material adverse effect on us. As of March 31, 2025, approximately $63.597 million in capacity remains under the ATM.
Current wording
On June 10, 2024, the Company filed a prospectus supplement for the offering, issuance and sale of up to a maximum aggregate offering price of $70.0 million of common stock that may be issued and sold under an at-the-market issuance sales agreement with Ladenburg Thalmann & Co. Inc., Kingswood Investments, a division of Kingswood Capital Partners, LLC, PI Financial (US ) Corp. and ATB Capital Markets USA Inc., each respectively acting as sales agents (the “ATM”). The Company has used and intend to continue to use the net proceeds from the ATM for general corporate purposes, including without limitation, repurchases and redemptions of our common stock and general working capital. The ATM will terminate upon the earlier of (i) the issuance and sale of all of the shares of the common stock subject to the conditions set forth in the ATM or (ii) termination of the ATM as otherwise permitted thereunder. The ATM may be terminated at any time by either the Company or any sales agent with respect to itself upon five days’ prior notice, or by the sales agents at any time in certain circumstances, including the occurrence of a material adverse effect on us. As of June 30, 2025, approximately $62.036 million in capacity remains under the ATM.
Previous wording
The following table provides detailed information about the Company’s net cash flow for the three months ended March 31,
Current wording
The following table provides detailed information about the Company’s net cash flow for the six months ended June 30,
Previous wording
Net cash used in operating activities was approximately $3,219,000 for the three months ended March 31, 2025, and consisted primarily of cash proceeds from the sale of digital assets of approximately $1,647,000, offset by cash expenditures for operating activities of approximately $4,777,000.
Current wording
Net cash used in operating activities was approximately $4,098,000 for the six months ended June 30, 2025, and consisted primarily of cash proceeds from the sale of digital assets of approximately $3,094,000, offset by cash expenditures for operating activities of approximately $7,192,000.
Previous wording
Net cash used in operating activities was approximately $983,000 for the three months ended March 31, 2024, and consisted primarily of cash proceeds from the sale of digital assets of approximately $6,106,000, offset by cash expenditures for operating activities of approximately $7,089,000.
Current wording
Net cash used in operating activities was approximately $782,000 for the six months ended June 30, 2024, and consisted primarily of cash proceeds from the sale of digital currency of approximately $12,969,000, offset by cash expenditures for operating activities of approximately $13,751,000.
Previous wording
Net cash used in investing activities was approximately $1,780,000 for the three months ended March 31, 2025, and consisted of (i) the purchase of mining equipment for approximately $558,000, (ii) cash disbursement of approximately $1,222,000 for deposit under assets acquisitions agreements.
Current wording
Net cash used in investing activities was approximately $1,815,000 for the six months ended June 30, 2025, and consisted of (i) the purchase of mining equipment for approximately $558,000 and (ii) cash disbursements of approximately $1,257,000 for deposits under asset acquisition agreements.
Previous wording
Net cash provided by financing activities was approximately $4,582,000 for the three months ended March 31, 2025, and consisted primarily of (i) increase in insurance premium loans of $343,000 offset by insurance premium loan payments of $47,000, and (ii) $2,095,000 of cash proceeds from issuance of Gryphon Common Stock offset by the payment of $75,000 for costs related to the issuance of Gryphon Common Stock, (iii) $2,409,000 of cash received from the sale of Gryphon Common Stock using the ATM offset by payments of $72,000 for cost related to the issuance of the Gryphon Common Stock and (iv) $71,000 of cash payments for the interest on the Note Payable.
Current wording
Net cash provided by financing activities was approximately $5,856,000 for the six months ended June 30, 2025, and consisted primarily of (i) a loan of $343,000 for our insurance policy premiums, (ii) insurance premium loan payments of $161,000, (iii) $2,116,000 of cash proceeds from a registered direct offering of the Company’s common stock, (iv) $76,000 for costs related to the registered direct offering, (vi) $3,872,000 of cash received from the sale of the Company’s common stock using the ATM, (vii) $114,000 for cost related to the ATM, and (viii) $124,000 of cash payments for the interest on the Note Payable.
Previous wording
Net cash provided by financing activities was approximately $1,805,000 for the three months ended March 31, 2024, and consisted primarily of (i) insurance premium loan payments of $90,000, and (ii) $1,395,000 of cash proceeds from issuance of the Company’s Gryphon Common Stock from the sale of Gryphon Common Stock using the ATM, and (iii) $500,000 of cash received from the acquisition of Akerna.
Current wording
Net cash provided by financing activities was approximately $2,040,000 for the six months ended June 30, 2024, and consisted primarily of (i) insurance premium payments of $279,000, (ii) $2,054,000 of cash proceeds from issuance of the Company’s common stock offset by the payment of $235,000 for costs related to the issuance of common stock, and $500,000 of cash received from the acquisition of Akerna.
Previous wording
The following is a reconciliation of our non-GAAP adjusted EBITDA to its most directly comparable GAAP measure (i.e., net income (loss)) for the three months ended March 31:
Current wording
The following is a reconciliation of our non-GAAP adjusted EBITDA to its most directly comparable GAAP measure (i.e., net income (loss)) for the six months ended June 30:
Rearranged current paragraphs (9)
Current report — wording carried from elsewhere
The following table shows the Company’s results of operations for the six months ended June 30,
Current report — wording carried from elsewhere
Mining revenues decreased to $2,935,000 for the six months ended June 30, 2025 from $13,005,000 for the six months ended June 30, 2024. The decrease in mining revenues of $10,070,000 was due to a combination of factors. The average value of bitcoin mined for the six months ended June 30, 2025 was $94,000 compared to $58,000 for the six months ended June 30, 2024, an increase of $36,000, or 63.0%. For the six months ended June 30, 2025, the Company had approximately 10,700 miners in operation compared to approximately 8,800 for the six months ended June 30, 2024. However, these increases in revenue recognized per bitcoin earned and operational miners were offset by the increase in global hashrate as well as the 50% reduction in block rewards due to the halving event in April 2024.
Current report — wording carried from elsewhere
During the six months ended June 30, 2025 and 2024, the average daily global hashrate was 875.7 exahash and 602.1 exahash, respectively, an increase of 45%.
Current report — wording carried from elsewhere
For the six months ended June 30, 2025, unrealized loss on marketable securities was $43,000, as compared to $272,000 for the six months ended June 30, 2024. The loss for the six months ended June 30, 2025 related to a decrease in the fair market value of the underlying securities held.
Current report — wording carried from elsewhere
During the year ended December 31, 2024, the Company had a note payable denominated in Bitcoin, which was accounted for under the fair value method of accounting. For the six months ended June 30, 2024, the Company recognized a $6,895,000 increase in the fair value of notes payable. The note payable was settled in October 2024; therefore, the Company did not incur a fair value change for the six months ended June 30, 2025.
Current report — wording carried from elsewhere
For the six months ended June 30, 2025, interest expense was $9,000 as compared to $620,000 for June 30, 2024. For the six months ended June 30, 2024 interest expense was related to the note payable denominated in Bitcoin. As to the Bitcoin denominated note payable was settled in October 2024 and accounted for as a troubled debt restructuring, the new note payable principal balance was increased for aggregate interest expense accrued under the prior note, and as such the monthly interest payment reduces the note payable balance; therefore, the Company did not recognize interest expense for the six months ended June 30, 2025.
Current report — wording carried from elsewhere
Depreciation decreased to $515,000 for the three months ended June 30, 2025, from $3,292,000 for the three months ended June 30, 2024. The decrease is due to the fact that average remaining useful life of the mining fleet as of June 30, 2025 was 23 months, while average remaining useful life of the mining fleet as of June 30, 2024 was 52 months.
Current report — wording carried from elsewhere
Unrealized gain (loss) on marketable securities
Current report — wording carried from elsewhere
Change in fair value of BTC Note